Current Communications has agreed to design, build and operate a broadband-over-powerline network using the existing power grid of Texas energy utility TXU, the companies announced today.

TXU Electric Delivery, a subsidiary of the state's largest electric utility, will pay Current $150 million over 10 years for the project and become an equity investor in Current. The companies declined to quantify the equity investment amount or TXUED's resulting stake in Current. In July, Current announced $100 million in new funding from investors including Goldman Sachs and Google.

A BPL provider, Current will use the network to offer an undetermined bundle of communications services that includes voice (both wireless and wireline), video and data services. Current will market the services to about 2 million residents within TXU's Dallas-area footprint, who will receive the services through their homes' electrical outlets. That footprint includes areas served with fiber-to-the-premises from Verizon Communications, including Keller, Irving and Lewisville.

In a press conference today, Current predicted launching service before the end of 2006 but would not specify what services would be included in that launch. William Berkman, Current's chairman and co-founder, said the company will be open to wholesaling its network to other retail providers. Though Current plans to provide its own voice-over-IP service (based on a back office system from Net2Phone), the company might partner with wireless or video providers to add to its bundle.

"We'd like customers to decide which services they'd like on one bill," Berkman said.

Though Berkman wouldn't speculate on prices for its Texas services, he pointed out that, in Cincinnati, Current offers symmetrical broadband at 1 Mb/s, 2 Mb/s and 3 Mb/s for $30, $35 and $40 a month, respectively. In Texas, Current may offer broadband services equaling or exceeding 10 Mb/s symmetrically, Berkman said, citing the high bandwidth needs of video services.

Current already offers BPL to more than 50,000 homes in Cincinnati with plans to expand that network to reach 250,000 homes by 2007. Its Ohio network was launched in connection with local energy utility Cinergy in 2004.

TXUED, meanwhile, will use the new Texas network to remotely read electricity meters, detect power outages and restorations and turn electricity service on and off.

Construction of the Texas network will begin in the first half of 2006.