Understanding deregulated energy in Texas
Understanding deregulated energy in Texas
In most of Texas, the electricity industry is deregulated, which means you can purchase electricity from a retail electric provider of your choice.
In contrast, the remaining areas of Texas have a regulated electricity industry, where electricity is delivered to homes and businesses by a single utility company, without the power of choice.
Thanks to deregulation, the electricity industry is open to competition. This means you can shop for plans, compare prices and choose the retail electricity provider (REP) that best fits your needs.
Deregulated energy markets allow you to select your energy provider, giving you the power of choice when it comes to who provides your electricity service. This is an important factor when considering which retail electric provider will best fit your specific needs. Electricity rates, contract plans and customer service can all vary depending on the energy provider. Thanks to electricity choice in deregulated markets, customers can tailor their electricity choices to best meet their budget and lifestyle.
In the early 2000s, Texas became the first state in the country to deregulate its electricity market. Since then, more than 20 million electricity customers have chosen their electricity provider. Giving Texans the option to choose their electricity provider has led to competitive prices and more robust customer service. ERCOT (the Electric Reliability Council of Texas) is the entity that manages the deregulated electricity grid in Texas.
The Public Utility Commission of Texas (PUCT) is the state agency responsible for regulating and overseeing the Texas electricity market, including ERCOT.
Deregulation has also incentivized retail electric providers to continuously innovate in order to stay competitive. Renewable energy sources have also been encouraged by deregulation as customers can now choose a retail electric provider based on their renewable energy portfolio, allowing them to support green energy sources.
In deregulated areas, electricity is delivered to Retail Electricity Providers’ (REPs’) customers through a Transmission and Distribution Service Provider (TDSP). The TDSP, or utility company, is determined by the area in which the customer lives. The TDSPs in Texas are: CenterPoint, AEP Texas, Texas-New Mexico Power and ONCOR.
In Texas, there are several utility companies that electricity providers, such as Reliant, work with. Most commonly referred to as a TDSP (Transmission and Distribution Service Provider), other names for a utility company include: TDU (Transmission and Delivery Utility) and distribution service provider. An electricity provider, on the other hand, is also known as an REP (retail electricity provider).
While both are equally important, TDSPs and REPs each have their specific roles and responsibilities in our Texas electricity market. Below you will find information about what each of their roles are and when you should call them.
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A kWh, or kilowatt-hour, is a unit of measurement for the amount of electrical consumption per hour. Knowing this can help you further understand your electricity usage and billing so you can choose the plan that is best for you. Calculating your monthly electricity usage in kWhs is easy. Just check out this video.
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If you’re new to the state, you may or may not have heard of deregulation, and depending on the location, you might be moving into an area that is deregulated. Reliant wants to simplify your moving experience by getting you acquainted with this topic. In a deregulated electricity market, you have choices that make electricity buying a lot more personal.
La Marque
La Porte
League City
Liverpool
Lufkin
Nassau Bay
Palacios
Pasadena
Prairie View
Quintana
Rosenberg
San Leon
Sargent
Seabrook
Sealy
South Houston
Surfside Beach
Texas City
West Columbia
Wharton
Zavalla
Bonham
Booker
Breckenridge
Buffalo
Burleson
Canton
Cedar Hill
Childress
Clarendon
Clarksville
Cleburne
Collinsville
Comanche
Commerce
Cooper
Eustace
Farmers Branch
Flint
Forest Hill
Forney
Gainesville
Graford
Graham
Granbury
Grandview
Gun Barrel City
Haltom City
Henrietta
Hurst
Hutchins
Italy
Jacksboro
Kaufman
Keene
Keller
Knox City
Ladonia
Lake Whitney
Lake Worth
Lancaster
Lindale
Palmer
Paris
Perryton
Pilot Point
Pottsboro
Quanah
Quinlan
Rainbow
Ranger
Red Oak
Reklaw
Richland
Richland Hills
Roanoke
Rockwall
Rowlett
Royse City
Saginaw
Saint Jo
Seagoville
Shamrock
Sherman
Spearman
Springtown
Stephenville
Sulphur Springs
Terrell
Throckmorton
Van
Van Alstyne
Vernon
Waxahachie
Wellington
West Tawakoni
Westlake
White Settlement
Whitewright
Wills Point
Wolfe City
Yantis
Albany
Alpine
Andrews
Anson
Aspermont
Baird
Ballinger
Balmorhea
Barksdale
Big Lake
Big Spring
Bronte
Christoval
Cisco
Clyde
Colorado City
Comstock
Crane
Cross Plains
De Leon
Dickens
Dumas
Eagle Lake
Eastland
Eden
Eldorado
Fort Davis
Fort Stockton
Hamlin
Haskell
Iraan
Rocksprings
Rotan
Ruidoso
Rule
Santa Anna
Sheffield
Snyder
Sonora
Spur
Stamford
Sweetwater
Terlingua
Winters
Bellmead
Belton
Brownwood
Burnet
Cameron
Cedar Park
Centerville
Clifton
Copperas Cove
Crockett
Devine
Early
Elgin
Flo
Gatesville
Hamilton
Harker Heights
Hillsboro
Hubbard
Hudson
Huntington
Jewett
Johnson City
Junction
Killeen
Lacy Lakeview
Laguna Park
Leona
Malone
Manor
McGregor
Milano
Milford
Nacogdoches
Neches
Palestine
Rockdale
Round Top
Salado
Seguin
Taylor
Whitney
Wimberley
Woodway
Alamo
Alice
Aransas Pass
Arroyo City
Austwell
Beeville
Bishop
Brackettville
Carrizo Springs
Cotulla
Crystal City
Dilley
Donna
Edinburg
Edna
Escobares
Falcon Heights
Falfurrias
Freer
Fulton
George West
Goliad
Hebbronville
Hidalgo
Ingleside
Jourdanton
Karnes City
Pleasanton
Port Aransas
Port Isabel
Port Lavaca
Port Mansfield
Port O'Connor
Portland
Premont
Rachal
Rancho Viejo
Raymondville
Refugio
Rio Grande City
Rio Hondo
Riviera
Riviera Beach
Rockport
Roma
Sabinal
San Benito
San Juan
Sandia
Seadrift
Sinton
South Padre Island
Taft
Three Rivers
Tivoli
Tuleta
Weslaco
Yorktown
Zapata
Find out how we're making the transition to electricity choice for parts of Lubbock easy.
Deregulation has a positive effect on the energy market because it increases competition amongst REPS, which can lead to lower prices and improved customer service. Additionally, deregulation can also create more jobs within the energy sector as new businesses enter the market. It can also result in fewer government subsidies and less government intervention in certain sectors.
Deregulation promotes consumer choices by increasing the number of options available in the market. This allows you to find services that meet your needs at competitive prices. Additionally, deregulation can make markets more open and transparent, which allows you to compare different products more easily.
Deregulation of the electric grid can improve efficiency in the electricity sector by allowing innovative technologies like distributed power generation and renewable energy to enter the market. It can help reduce power plants and greenhouse gas emissions by incentivizing the use of renewable energy sources.
1 Requests processed after 5:00 p.m. Central Time will be connected the next business day. Same-day service is offered Monday through Saturday, weather permitting, where an existing meter is in place. No connections on holidays. Enrollment and permit requirements must be met before a request can be processed. Additional charges apply.
2 Referral bill credit amount will vary based on our current promotional offer. Referrals may only be submitted by active Reliant residential customers with a Texas service address. To qualify for bill credit, referrals must be new Reliant residential customers in Texas enrolled in a term plan with a minimum often days of active electricity service on that plan. Bill credit will be applied within two billing cycles after the referred customer has completed ten days of active electricity service. Bill credit not redeemable for cash. Any disputes relating to eligibility will be determined solely by Reliant. Reliant may modify or discontinue this program at any time without notice. Additional terms and conditions apply.
