GARLAND, Texas, February 8, 2006 - Effective March 1, 2006, the Garland City Council has approved a decrease in the fuel cost factor component of the rate for electric service provided by Garland Power & Light (GP&L). This adjustment is appropriate because of the recent lower market price of natural gas. The new fuel cost factor will reduce an electric bill for 1000 kWh by 7%.

This decrease in the fuel cost factor is possible because GP&L is a municipal utility and has not opted in to deregulation. At the present time, the market does not provide a mechanism for lowering the Price-to-Beat for investor owned utilities like TXU and Reliant. Conversely, GP&L can act much quicker to changes in the natural gas market.

The cost for electric service provided by GP&L is now the lowest in the TXU Delivery service area based on offers listed on the Texas Electric Choice website. Comparing electric usage of 1000 kWh, GP&L customers will pay $129.42, while TXU price-to-beat customers will pay $144.11.