Dallas-Based Utility Seeks Second Rate Increase in Month.

Byline: Dan Piller

Jun. 11--TXU Energy on Thursday filed for its second electric rate increase of the year, seeking permission to boost its residential rates by 5.7 percent.

The request comes less than a month after the state's Public Utility Commission approved a 3.4 percent rate increase. But Dallas-based TXU said a second increase is warranted because of the higher cost of natural gas, which fuels many electric generators.

The typical homeowner, as defined by state regulators, would see a monthly electric bill rise from $104 to $109, based on 1,000 kilowatt-hours of usage. The kilowatt-hour charge would rise from 10.39 cents to 10.98 cents.

If approved, the increase would mark the fifth granted to TXU since Texas deregulated its electricity markets in 2002. Under deregulation, the incumbent utility in an area, such as TXU in North Texas, has its rates set as the "price to beat" by state regulators. Rival providers can set their own rates. Incumbent utilities are allowed to file up to two rate increase requests per year.

TXU executives had indicated several times in recent weeks that they would soon file for a second increase.

Unregulated electric providers in North Texas have gradually raised their rates in recent months.