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Exploring Texas Electricity
People all across Texas have the ability to choose among electricity supply rates offered by competing retailers. In 2002, the Texas Senate passed deregulation laws designed to change the electric industry into a model intended to enhance competition, and give Texans like you the power to choose among electricity suppliers. With just a little research, you're sure to come away with a better understanding of the industry surrounding Texas electric service.
How to get the best Texas electricity plan
The key to getting the best Texas electricity plan for your needs is to shop around before you sign on with a retailer. There are so many plans and perks available that comparison shopping is truly an important step to ensure that you find the right Texas electricity plan. It doesn’t matter whether you are a residential or commercial customer when shopping for an electricity plan in Texas. It's important that you understand a few basic rate structures to help you navigate the options available to you.
What does an open market mean for Texas electricity customers?
When lawmakers deregulated the Texas electricity market the industry was broken into three separate parts. Rather than utility companies controlling all aspects of the Texas electricity system, multiple companies contribute to providing your electricity.
- Power generation companies own the power plants that produce electricity for Texas residents and businesses. Texas powerplants come in various shapes and sizes, depending on which type of energy source they use to create electricity. Once electricity is created, the generation companies sell it to retail electricity companies.
- Retail electricity supply companies set electricity rates and design the supply plans that consumers purchase.
- Utility companies are responsible for the delivery and transmission of your energy supply. Each area of Texas has a specific utility that transports energy to its residents. Utilities own the infrastructure in their service territory, including the power lines, transformers and meters. You'll still pay your utility company a fee for distribution, but your electricity supply rates will be determined by the retail electricity provider you choose to purchase your supply from.
Deregulation in Texas doesn't actually change anything about how you experience access to electricity. It's still going to be available every time you flip on a switch. Of course, if you use our energy saving tips, you can use less energy!