Dear Friends:

I am pleased to send you this correspondence concerning Garland Power and Light as Texas begins to deregulate the electric industry. On May 21, 1999, Senate Bill 7 was passed into law. The purpose of the bill is to bring competition into the electric industry. Deregulation begins on January 1, 2002 for all investor-owned utilities. One of the provisions stipulates that electric cooperatives and municipally-owned utilities such as Garland Power and Light are not required to participate.

The Garland City Council has made the decision not to enter into deregulation for now or the foreseeable future. In fact, all 156 Texas electric cooperatives and municipal utilities have also made the decision not to participate in deregulation. The option to enter the deregulated market will remain open to Garland Power and Light.

However, once the Garland City Council votes to participate in deregulation, the decision is permanent and there is no opportunity to withdraw at a later date. This decision has come after years of Garland City Council and Garland Power and Light administration aggressively researching and working with other entities such as the Public Utility Commission, the Texas Public Power Association and the Texas Municipal Power Association.

There has been a tremendous amount of extensive research conducted through a comprehensive strategic analysis, which has also guided the decisions about our future. We are continually monitoring electric industry trends and economic and financial markets to ensure that Garland Power and Light remains competitive, reliable, and accessible. We have invested in new power generation and infrastructure upgrades and improvements to ensure that we are in a position of strength to serve our customers.

The purpose of this brochure is to inform customers of our commitment to providing reliable service at a competitive price, and to answer possible questions concerning electric deregulation.

We are proud to be your utility provider and pledge to bring your strong and reliable service at competitive rates.

Sincerely,

James M. Spence, Mayor City of Garland

For questions about electric deregulation, contact GP&L at info@garlandpower-light.org or call 972-205-2650.