The Effect of Deregulation in the Structure of the Texas Power Market

by Texas Electricity Deregulation on October 31, 2011

The State of Texas has deregulated their energy sector and in the process the people of Texas have the option to choose the company who will provide electricity for their homes or business. Even though the Texas electric consumers experienced certain positive benefits upon the implementation of the deregulation in the energy sector more particularly those who are being served by the retail distributors, there are still a number of people who are still perplexed with regards to the procedure of deregulation and how it really works principally on the responsibilities of the companies and the different stakeholders in the electric market of the State of Texas. The electric consumers should try to understand the particular roles of every player in the energy sector and should have a better knowledge of the actual process of the power deregulation. The most basic fact is that the decontrol of the energy market in the State of Texas is applicable mainly to retail. The production and the generation and distribution of electricity and other components are still intact and mostly unchanged for the consumer.  Every key essentialarea in the energy market plays an important role to make certain that every electric consumer in Texas obtains electrical service in an effective and dependable method. Before deregulation, the electric utility in Texas was monopolized by only one company who supplied the electricity to the entire electric consumers in a certain area of the State. The said company was in charge of the entire process of distributing electricity including retail.  Upon the implementation of the deregulation, the electricity market in different states such as Texas and even California was transformed for the better.  The deregulation resulted in improved competition and lower prices for business electricity and residential customers. The deregulation also made it possible for the State of Texas to regulate the system and practically lower the cost of electricity.  The consumers have the option to determine who are engaged in eco friendly energy sources. The Present Structure of the Power Market in Texas The following are the current structure of deregulated power market in Texas including the companies engaged in electricity:

  • The Electric Power Generators

The electric power generators are primarily responsible for generating different sources of electricity through the use of different methods such as solar, natural gas, coal and other energy sources.  The power generators who produce wind electric system provide a large portion of electricity in Texas including in the other states of the U.S.A.

  • The Electric Transmitters and Distributors

The electric transmitters and distributors were not affected by the implementation of the deregulation of the energy sector. The maintenance and control of the power engaged in the transmission and distribution of electricity remained with these electric entities.  The electric transmitters and distributors are the ones responsible in the maintaining and repairing of electrical power lines.  The electric transmitters and distributors can charge the retailers maintenance fees every month.

  • The Retail Electric Providers

The retail energy providers were the ones that were greatly affected by the distribution.  The retail energy providers are the ones in charge of selling electricity directly and billing the consumers.  The deregulation paved the way for more retailers to compete for better service by giving discounts and other better alternatives to the consumers. Learn more at Choose Energy.


Electricity Deregulation in Texas and Your Options

by Texas Electricity Deregulation on October 28, 2011

At the beginning of 2002, the Senate passed a bill that allowed electricity and energy to be deregulated. The purpose behind this bill was to allow consumers to choose where they got their electricity and to lower prices for those consumers and businesses. It also allows consumers to reach out and try other types of energy and it ensures that companies give better customer service as
consumers and businesses can change electricity companies now. The article below will discuss the Texas electricity deregulation and other options that consumers and businesses can choose.

The Senate Bill SB7 was passed to deregulate electricity so consumers could have the power to choose where they get energy from, to lower prices for consumers, and get better customer service and create more jobs in Texas. The thought was that if there was good competition between electricity businesses, the prices would drop for all consumers. But unfortunately that hadn’t been the case until recently. Prices went a little lower  but not as much as was expended for consumers until recently when prices have dropped well below what consumers were paying just 2 years ago. The bill would also allow consumers to switch between energy providers or choose alternative ways of energy. Additional competition means businesses will have to keep their customer service strong in order to retain consumers. It also means that there will be additional jobs in the new electricity and energy companies.

With the deregulation of electricity, there is now a power for consumers to decide how they want to get energy. It doesn’t all need to come from the power companies. There are alternatives to regular electricity. It can come from solar power panels, wind mills, fossil fuels, wind turbines and other renewable sources. Each of these choices is better for the environment and there are federal tax incentives for using them. These choices are called Distributed Renewable Generation (DRG) and generate energy from these small energy sources, gather it together and then distribute it out to the subscribers.

The power of choice is one of the best things that has come out of the electricity deregulation for Texans. No longer is there a monopoly on the electricity and energy companies but now there are choices between different companies and different
energy options. is a website that will help you find the best energy choices in your area. It’s easy to do, all there is to do is to enter your zip code and they do the rest.



The Texas Electricity Deregulation Market Structure

October 26, 2011

The Texas electricity deregulation market is now split into three different parts, instead of having one company that provides everything. One part is the actual power generation – the company actually produces the electricity. It used to be that only companies that were using fossil fuel to generate electricity were available, but in recent years [...]

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Texas Electricity Deregulation – A Deregulation Road Map For America

September 22, 2010

Texas Electricity Deregulation – A Deregulation Road Map For America – It’s known that when electric companies get the chance to establish a monopoly such that consumers have no competition to choose from, the companies themselves hold all the cards and the consumers are left to take what they can get, at whatever price the company deems necessary for profit. Even though there is regulation in place, there is no competition to help drive prices down and foster innovation. To that end, deregulation laws were enacted in Texas in 2002 – now most Texas citizens (roughly 75% of the State) can choose their Texas electric providers. That means more competition, and THAT means that customers are once again in control. Deregulation means better customer service, more innovation, lower and alternative pricing plans, and a chance to use renewable energy sources instead of “bad for the environment” and nonrenewable energy sources.

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Texas Electricity Deregulation – What You Need To Know

September 13, 2010

Texas Electricity Deregulation – What You Need To Know – The state of Texas has offered consumers the power to choose their electricity provider ever since deregulation began in 2002. This means that if you’re a Texas resident and you’re not happy with the service your power company has been offering, you can choose to get different service. You can choose from companies that offer a higher quality of customer service, renewable energy sources, and many other features that your current provider simply may not be able to offer. Let’s take a look at the details.

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Texas Electricity Deregulation

September 13, 2010

Texas Electricity Deregulation – Texas electricity deregulation is the deregulation of the electricity industry that has been experienced in Texas since the mandated legislation was passed. Regulation was originally designed to prevent a number of abuses and provide the consumers with security against price gouging among other things. Interest in deregulation began during the 1970′s however; it was not until the 1990′s and the turn into the 21 century when electricity deregulation finally gained momentum and legislation was passed providing incentives and options for the deregulation of the utilities industry.

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How To Choose Your Texas Electricity Service Provider

September 2, 2010

Before looking into how to choose an electric service provider it is important to understand what Texas electricity deregulation is and how it relates to you. This is really important, because many people don’t understand what it is. In the past, when you got your electricity hooked up, there just were not a lot of choices when it came to a service provider. This meant that you had to put up with retail service providers, or REPs that charged high Texas electricity rates, or that had rates that would go up and down on a whim, usually going up just when you needed your electricity the most, like during the hot and humid Summer months.

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