Texas leg's electric rate cuts: a help or hinderance to competition?

According to wire reports, the Texas legislature passed a bill to cut the rates of Reliant and TXU customers who were on the highest rate, formerly known as the-price-to-beat, as of Dec. 31, 2006. The reduction would go into effect in September.
The measure was aimed at giving a break to people who didn’t switch to competiting companies or lower rates offered by the former power company incumbants. This occurred for a number of reason, such as confusion, apathy, brand loyalty etc.
My question about this bill: would it encourage those people to stay with TXU/Reliant or whomever it was that offered that price-to-beat rate rather than encourage competition? And would it hurt the other retailers who are trying to make this market competitive and really reward the incumbent? I’d be interested in more explanation/feedback on that thought.
It also appears language in HB 1189 that I wrote about (which would have kept the Public Utility Commission from getting involved in disputes between retailers and businesses) was removed. I can’t pull up the current version of the bill but this statement was released last night:

The National Federation of Independent Business, Texas’ leading small-business advocacy group, today applauded Rep. Phil King (R-Weatherford) for removing language in a bill that would have prohibited small-business owners from appealing their bills directly to the Public Utility Commission when they have a dispute with their service provider.