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Deregulation for Dummies... Learn more!

In the past, one company provided all parts of your electric service (generation, transmission and distribution, and retail sales). With competition, these parts are separated.

The actual delivery of electricity across poles and wires to your home is called transmission and distribution. These services are provided to you by the local wires company, which is responsible for maintaining the poles and wires, and responding to emergencies and power outages as always. The PUC continues to regulate the delivery of electricity to ensure the safety and reliability of your electric service.

With electric competition, Retail Electric Providers (REPs) sell electricity to you and provide functions such as customer service and billing. REPs compete for your business by offering lower prices, renewable energy options, added customer service benefits or other incentives.

"The basic concept of energy deregulation in Texas is to develop a better service for the customer by creating a climate of competition."

Your current provider will no longer be a provider. Your current utilities company will no longer provide all-in-one power generation, transmission/distribution, and retail energy services. You will purchase your electricity from one of Texas' Retail Electric Providers (REPs) - entities that are separate from Power Generating Companies (PGCs) and Transmission/Distribution Service Providers (TDSPs).

Every REP is a "new kid in town." Energy being sold by Retail Electric Providers is a new facet in the Texas energy market. Although some REPs bear similar names to pre-deregulation utility companies, they are newly-formed entities. The first Texas REP was certified by the Texas PUC in November 2000.

You can choose what is best for you. With a new competitive retail market opened, you can now make the choice as to which REP will best serve your particular energy needs.

2002 Affordable Energy of Texas.  All rights reserved.