What is deregulation?
The specifics around deregulation vary from state to state, but in general, deregulation gives customers more choice.In the past, you had no say in whether electricity came from coal and nuclear power or wind and hydropower. With deregulation, you can choose who provides your electricity generation services.And don’t worry – deregulation doesn’t affect service reliability. Your current utility still maintains your lines, reads your meter and resolves service issues.
When Texas electricity was deregulated on Jan. 1, 2002, with the passage of State Senate Bill SB7, Texans were encouraged to shop for competitive electricity prices. Deregulation has created competition, renewable energy choices, better services and additional customer-service benefits. Before deregulation, one utility managed the transmission, distribution and sales of electricity to your home or business. Today, your local wires company still maintains the transmission and distribution of your electricity, while another company (Retail Electric Provider) handles the sales and billing of your electricity. The Public Utility Commission assures the safety and reliability of the delivery of electricity is the same, regardless of the company you buy your electricity from.
