The Texas Electricity Deregulation Market Structure

by Texas Electricity Deregulation on 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 this has changed greatly. Now you have a choice, you can use alternative energy sources, like wind turbines, or even solar arrays.

Then there is the transmission distribution and service providers, or TDSP for short. This is the high voltage lines which carry the actually electricity over to the substations, close to where you live. These substations then convert the high voltage down to a voltage that you can actually use, and send it to your home or business. This works hand in hand with the Public Utilities Commission, as well as the Electric Reliability Council of Texas, or ERCOT for short. Both PUC, as well as ERCOT make sure that the power grid is safe and reliable for the whole state, including where you live.

Then one of the most important factors in this chain is the Retail Electric Providers, or REP. The REPs are where you buy your electricity, and with the many different ones available, they are competing for your business. They do this by offering competitive rates, discounts, depending on your needs, and these companies are where your electric bill comes from. No matter who you choose, your actual service remains reliable, because of the PUC and ERCOT.

While this may sound a little confusing, it doesn’t have to be. The point of it all is that instead of having to deal with just a few companies that control everything, you have many different choices instead. You can choose a REP that only sellsĀ electricity from alternative energy generation plants, so that you can be environmentally conscious. You can prepay for services, and if you have poor credit, or deal in cash only, you can find a provider that won’t check your credit history, or that has an abundance of pay centers so you can come in and pay in cash.

If you are unsure about what your needs are, or which company will best suit your needs, then go to They can explain everything in easy to understand detail, as well as provide you with a list of the top REPs in the Texas area. This website offers unbiased reviews of these companies, and will even walk you through the process of switching over to the one you like the most. They have an education center, which can explain what deregulation is, which services are in your area, and many other helpful energy saving tips. They offer services for both commercial, as well as residential customers, and can even help you if you are moving to a new location.

You have the power to choose your own REP, and you really need to educate yourself, as well as take a stand when it comes to choosing where your electricity comes from. You deserve the lowest rates, as well as the best customer services, and you should take control, not be controlled.

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