DEREGULATION FACTS

In 1999, the Texas Legislature passed Senate Bill 7 – effectively creating a competitive market for electricity service in the State of Texas.

Prior to deregulation, the generation, transmission and distribution and retail sales of electricity was accomplished through an investor-owned utility company assigned to consumers by the Public Utility Commission of Texas. Deregulation “unbundled” these services, providing Texans in deregulated areas of the state the opportunity to choose (just as Texans can choose among telephone service providers) which retail electricity provider best suits their electricity service needs.

With deregulation, transmission of electricity as well as maintenance of poles and lines is still provided through your local utility company, whose operations are monitored by the Public Utility Commission of Texas. Consumers can choose to purchase electricity service from their local utility company (only through that utility’s Affiliate Retail Electric Provider) or from an independent, PUC-certified Retail Electricity Provider.

Retail Electricity Providers shop for the lowest cost of electricity from electricity generators throughout the State then compete for your business. Competition for electricity service results in lower rates, higher levels of customer service and better products for Texans.

Major cities where deregulation currently exists in Texas include Abilene, Arlington, Corpus Christi, Dallas, Fort Worth, Houston, Laredo, Lufkin, McAllen, Midland, Nacogdoches, Pasadena, Odessa, Plano, San Angelo, Richardson, Temple, Tyler, Waco, Victoria and Wichita Falls.