ELECTRIC CHOICE BEGINS
On January 1, 2002, most regions throughout the state of Texas were deregulated allowing both businesses and homeowners to compare electric service and price offerings from Retail Electric Providers (REPs). A map of the Electricity Reliability Council of Texas (ERCOT) region can be viewed here (link to map of ERCOT). Co-operative Utilities and Municipal Utilities have the opportunity to opt-in and participate in deregulation, but are not required to participate. Consumers of electricity now have the ability to choose their supplier of electricity while the delivery of the power (poles and wires) remains the responsibility of the “regulated” power company. Customers have the capability to choose an electricity supplier that best fits their needs based upon price, contract terms and conditions, product structure, financial stability and available service and billing options. Along with customer choice comes the necessity to understand, review, manage and facilitate the electric supply bid process as well as assess current market conditions.
REGULATED SERVICES
The delivery of electricity across poles and wires is provided by Transmission and Distribution Service Providers (TDSPs). These services are currently provided to you by your local wires company, which is responsible for maintaining the infrastructure and responding to emergencies and power outages. The Public Utility Commission continues to regulate transmission and distribution service to ensure the safety and reliability of your electric service regardless of which Retail Electric Provider you choose. You do not have the ability to choose your local wires company.
Before deregulation, your electric service was provided by a single electric utility; Texas Utilities (TXU), Reliant Energy, Central Power & Light (CP&L), Texas-New Mexico Power Company (TNMP), or West Texas Utilities (WTU). Your provider was determined solely upon the location of the business or residence. To receive electric service, you simply called the local utility company that had the exclusive right to provide service in your area and paid the scheduled tariff rate set by the Public Utility Commission of Texas (PUCT) (http://www.puc.state.tx.us). No contract terms and conditions were required.
DEREGULATED SERVICES
With electric competition, Retail Electric Providers (REPs) sell electricity to you and provide functions such as customer service, pricing structures and billing options. These companies purchase electricity from competing power plants and electricity is delivered to your home or business over the poles and wires of your local wires company. REPs compete for your business by offering lower prices, renewable energy options, added customer service benefits or other incentives. With electricity deregulation, you now have the ability to choose the REP that best fits your needs. If you do not choose a provider, your electric service will be provided by your Affiliate REP – a company affiliated with your local wires company at the tariff rate.
No matter which REP provides your service, the PUCT continues to enforce customer protection and regulate the delivery of electricity to ensure it is delivered safely and reliably by the TDSP.