We're here to help you
     understand your power.

Shop electricity rates
in my ZIP code

Texas Electricity Deregulation

What is electricity deregulation? The Texas power industry has been undergoing changes that affect the control you have over who provides you with your electricity. Federal and State initiatives have led to several states deregulating or restructuring their systems to encourage competition. In Texas, electric deregulation has enabled customers across the state to shop around for more competitive energy rates.

Historically, local utility companies were highly regulated monopolies that control all electric services from supply to transmission and distribution. With electric deregulation, electricity transmission as well as the maintenance of infrastructure is still provided through your local company. The difference is that your electricity supply is now open to competition.

Now, many states are following in the footsteps of Texas electricity deregulation, allowing energy sellers to offer competing products.

Texas Regulation Timeline:

In 1999, Governor George Bush signed Senate Bill 7, which effectively created a competitive market for electricity service in the state of Texas. In 2002, retail electric deregulation was made mandatory. In making electric deregulation mandatory the state further encouraged competition between electric companies and inspired Texas residents to choose who would supply their power.

Regardless of deregulation, electricity companies in Texas are all monitored by the PUCT, or the Public Utility Commission of Texas. You can see if a company is approved to sell electricity supply in your area by checking for the PUCT number on the website.

Texas Electricity Quick Facts

From: http://www.eia.doe.gov/state/state_energy-profiles.cfm?sid=TX

  • The state of Texas is the largest electricity market in the United States
  • Texas is the leading crude oil-producing state in the nation (excluding federal offshore areas, which produce more than any single State).
  • The State’s signature type of crude oil, known as West Texas Intermediate (WTI), remains the major benchmark of crude oil in the Americas.
  • Texas’s 27 petroleum refineries can process more than 4.7 million barrels of crude oil per day, and they account for more than one-fourth of total U.S. refining capacity.
  • Approximately three-tenths of total U.S. natural gas production occurs in Texas, making it the nation’s leading natural gas producer.
  • Texas also leads the nation in wind-powered generation capacity; there are over 2,000 wind turbines in West Texas alone.
  • Texas produces and consumes more electricity than any other state, and per capita residential use is significantly higher than the national average.

Top 5 Tips for
Electricity Shoppers

  1. Vote with Your Dollar - competition for your business inspires innovation
  2. Shop Smart - choose products, terms and service that meet your needs
  3. Conserve Energy at Home - lower usage means lower bills
  4. Look for Fixed Rates - they may give you long-term protection
  5. Read the Fine Print - make sure your monthly rate isn't promotional only