The Truth About Deregulation

In 1999 The State of Texas deregulated electricity. As a result Texas consumers now have a variety of Retail Electricity Providers (REPs) to choose from, for their electric service needs. Co-ops and Municipal services have a choice of deregulating or not, Because they are owned by local goverments (Municipal) or owned by the customers (Co-ops)they were not required to deregulate. As of today most have not deregulated but are at least considering it.

Prior to deregulation Electricity was purchased from the local wires companies. If you were in their territory you bought your electricity from them.  Now here in Texas there are several different companies to choose from, for your electricity needs.

Prices per KWH will vary from company to company and location to location, so depending on where you live and how you use electricity your rate per KWH could vary. So be sure to do your home work and make sure you are getting the best deal that's avilable for you.

Choice is a good thing for us here in the State of Texas because it stimulates competition between companies for our electric accounts. Hopefully this will help to keep the price of electricity affordable now and in the future. So take advantage of deregulation and shop around for the best service for you and your needs. The better informed you are the better chance you have of finding the best deal for your electric service.

Many Texas consumers are already saving  because they have discovered the truth about deregulation. We hope this site will help you become more informed. If you have questions that aren't answered here send us a note with your question.

An information sheet required by the PUC that provides customers with standardized information on a REP’s prices, contracts, sources of power generation and emissions. It allows customers to make an “apples-to-apples” comparison of REP offers. Retail Electric Providers must provide this disclosure to all customers at time of enrollment.

Public Utility Commission of Texas (PUC)
The state agency that is responsible for the regulation and oversight of electric services in Texas. The PUC regulates the delivery of electricity and enforces customer protections.

The ESI-ID is your Electric Service Identifier. Each meter is assigned an ESI-ID that can be found on your electric bill and is required for enrollment. Contact your local provider if you can't find your's on your monthly bill. They are required by PUCT to print it on the bill.

Elecriticy is measured by KWHs.

Kilowatt-hour (kWh)
A unit of energy equal to one kilowatt (kW) of power expended for one hour of time. The amount of electricity used each billing period is expressed in terms of a kilowatt-hour and is noted on your bill.

On Peak hours are when the demand is highest usually From May to October every year.

Off Peak hours are when demand is lowest usually from November to April every year.

Local Wires Company
The company that transmits and delivers electricity to a customer’s home or business along the poles and wires (formerly a local electric utility). This company is still responsible for the maintenance and repair of these poles and wires and responding to emergancies and outages.

No matter who you purchase your electricity from Your Local Wires Company will get paid for delivering it the same as always. They will read the meter and mantain the wires and poles in your area.

They are responsible for Delivery
The transmission of electricity over poles and wires to a home or business. These services are provided by the Local Wires Company, which is still responsible for maintaining the poles and wires, and responding to emergencies and power outages. The PUC still regulates delivery to ensure the safety and reliability of electric service.

REPs

Retail sales of electricity are provided by companies known as Retail Electric Providers (REPs), which are certified to do business by the Public Utility Commission. REPs purchase energy from generation sources and then sell the energy directly to consumers and businesses. REPs provide customer service and billing functions, and they compete for consumer business through lower rate offers.

There are two types of REPs, Affiliate Retail Electric Providers (AREPs) and Competitive Retail Electric Providers (CREPs).

Affiliate Retail Electric Provider
The Affiliate Retail Electric Provider (AREP) was part of the original electric company that generated and sold electricity in your area. That company has been split into the AREP and the Local Wires Company. Now the AREP only sells electricity and provides customer service. Customers of the Affiliate Retail Electric Provider (AREP) receive a standard rate offering or “Price to Beat” set by the Public Utility Commission of Texas that is usually the highest rate in the market. But customers who choose a new Retail Electric Provider can avoid the “Price to Beat” and save money with more competitive pricing. TXU Energy, First Choice, WTU Retail Energy just to name a few are good examples of AREPs.

Competitive Retail Electric Provider
The Competitive Retail Electric Provider (CREP) is certified by the PUC and sells electricity to homes and businesses and provides functions like customer service and billing. Ignite’s parent company, Stream Energy, Green Mountain Energy Co, EGXA Energy are some examples of  CREPs doing business in Texas.

Important note here. AREPs can and do sell electricity in other AREPs areas as well, only in that case they would be the CREP.  Any Company licensed to sell electricity in Texas can sell electricity to any deregulated meter in Texas.

What makes it all possible.

Generation
The production of electricity. In Texas, electricity is produced by a number of methods including natural gas, coal, nuclear power, wind, water and solar energy. The generation of electricity was deregulated in 1995.

You will find links to ERCOT

Electric Reliability Council of Texas (ERCOT)
The corporation that administers and maintains the reliability of the state’s electrical power grid. When you choose a new REP, ERCOT will send you a postcard confirming your switch from one REP to another.

Public Utility Commission of Texas (PUC)
The state agency that is responsible for the regulation and oversight of electric services in Texas. The PUC regulates the delivery of electricity and enforces customer protections.

You will also find links to other great places to enrich your knowledge of deregulation.

I chose my provider based on severl things with price being the main factor. I also wanted to spend my money with a Texas based Co. and Customer care was an important factor with me. The Link below was my choice. Charles Avery