Energy Deregulation Texas

Welcome to Energy Deregulation Texas, where you can learn about energy deregulation, electric competition in Texas and obtain information to help you make informed decisions about your electricity service and Retail Electric Provider.

Deregulation of the Texas Electricity Market

Electricity deregulation in Texas was the resultĀ  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 Notable Retail Electric Providers.