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.

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