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Texas Energy Deregulation Overview and the Switching Process
Background The largest electricity market in the United States 11th largest worldwide market 2
Introduction ,[object Object]
Since 2002, approximately 85% of commercial and industrial customers and approximately 40% of residental customers in Texas had switched power providers at least once. 3
Electricity Basics ,[object Object]
Retail Electric Providers (REPs)/Electric Companies
Power Generation Companies
Transmission and Distribution of Electricity
Repairs and Emergencies4
Reasons to Consider Switching ,[object Object]
Awide variety of electricity products and plans available in the marketplace, you may find a plan that provides you with significant savings or provide more certainty than your current plan.
You may also want to consider switching to an electricity product that uses primarily renewable energy.
Some Retail Electric Providers also have other value-added services5
Questions to Ask Yourself ,[object Object]

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Texas Electricity Deregulation

Editor's Notes

  1. The state of Texas is the largest electricity market in the United States; Texas also ranks as the 11th largest worldwide market, falling between Great Britain and Spain in terms of annual consumption.
  2. Electricity deregulation in Texas was the result of the coming into force of Texas Senate Bill 7 on January 1, 2002. According to the law, deregulation is to be phased in over several years.As a result, most Texas power customers (those served by a company not owned by a municipality or a utility cooperative)can choose their electricity service from a variety of "Retail Electric Providers" (REPs) which includes the incumbent utility (usually a subsidiary thereof). The incumbent utility in the area still owns and maintains the local power lines (and is the company to call in the event of a power outage) and is not subject to deregulation. Customers served by cooperatives or municipal utilities can choose an alternate REP only if the utility has "opted in" to deregulation; to date, only the area served by the Nueces Electric Cooperative has chosen to opt in.Since 2002, approximately 85% of commercial and industrial customers in Texas had switched power providers at least once. Approximately 40% of residential customers in deregulated areas of the state have switched from the former incumbent provider to a competitive REP. Notable Retail Electric Providers (REPs) include: Reliant Energy, Texas Power, Bounce Energy, Direct Energy, Stream Energy, First Texas Energy Corporation, Gexa Energy, Cirro Energy etc.