The Associated Press

DALLAS (AP) - TXU Energy plans to cut residential electricity rates by up to 15 percent.

The Dallas-based electricity retailer said in a news release Wednesday that more than 250,000 of its 2.2 Texas customers will see their rates automatically cut by Aug. 10.

Spokesman Tom Stewart says the cuts will average about 10 percent but could be as high as 15 percent depending on where the customers live.

TXU says it's cutting rates because of lower wholesale electricity prices and that the cheapest rates are the lowest since 2005.

Stewart says the company also is offering lower rates starting Aug. 1 to new customers who switch from other companies and to existing customers who want longer-term plans.