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Texas leads the country in Energy Deregulation. Texans now have the opportunity to enjoy the
benefits and competition mobile recharge online due to the Texas Legislature’s planning and
implementation. Texas established the Electric Reliability Council of Texas.
The Electric Reliability Council of Texas’s mission is to ensure that the electric grid operates efficiently and at a fair price.
The ERCOT grid covers about 75 percent of Texas’ land area. The Electric Reliability Council of Texas
manages the flow of electricity to about 20 million Texas customers. This represents 85 percent of
Texas’s electric load, and 75 percent of Texas’ land area.
ERCOT, the regional independent system operator, schedules power for an electric grid that includes
38,000 miles of transmission lines as well as more than 500 generation units.
ERCOT also handles financial settlements for the competitive wholesale bulk-power market and
manages customer switching for 5.9 Million Texans living in areas of competitive choice.
Texas competition is based on the principle of market rules. Stability in the electricity market is
possible by having clear, consistent and well-designed rules. Participants from all areas of the
electricity industry contribute to the development of Electric Reliability Council of Texas’ (ERCOT),
market rules. To ensure they are in the public interest, the Public Utility Commission of Texas reviews
the rules and amends.
Because they believe that competition is good for Texas, Texas legislators changed the state law to
give customers more control over how much electric service they purchase. Competition for electric
service will eventually lead to lower rates and faster development of new products.
WHAT HAS CHANGED?
In the past, only one company was responsible for all aspects of your electric service (generation and
transmission, distribution, and retail sales). These parts can now be separated by competition.
In 1995, generation, also known as the production of electricity was deregulated.
This resulted in a large supply of clean, efficient, and new power plants all over Texas.
Transmission and distribution are the actual transmission and distribution of electricity from poles and wires to your house. Your local wires company provides these services.
It is responsible for maintaining poles and wires as well as responding to power outages and
emergencies. To ensure safety and reliability, the Public Utility Commission regulates transmission and
distribution.Retail Electric Providers are able to sell electricity to your business and offer services such
as billing and customer service. Retail Electric Providers can compete with your business by offering
competitive prices, renewable energy options, and other benefits.The Public Utility Commission will continue to enforce customer protections, regulate the delivery of.
electricity and ensure that it is delivered safely by your local wires company.
It is also expected that competition will create new jobs, stimulate economic growth, and help the environment.
Retail Electric Providers are required to comply with the rules and regulations of the Public Utility
Commission of Texas (PUC). These rules and regulations protect you from fraudulent, unfair, misleading, or discriminatory practices.
These protections include:
Non-Discrimination. A Retail Electric Provider cannot deny service to a customer or discriminate in
marketing electric service based upon a customer’s income, location in an economically distressed
region, or eligibility for low-income services or energy efficiency.
Slamming and Cramming are two different things. Cramming, or adding additional charges to your
electric bill without your consent, is a way of increasing your electric bills for additional services. Both slamming as well as cramming is illegal.
Dispute Resolution: Retail Electric Providers are required to investigate customer complaints promptly.
Customers have the right of making complaints to the CUP about Retail Electric Providers.
Privacy of information: Retail Electric Providers cannot release customer-specific information without
your consent to any other Retail Electric Providers or companies.
Safety and reliability: No matter what Retail Electric Provider you choose to use, the Public Utility
Commission will continue to enforce customer protections as well as regulate the delivery and
distribution of electricity. This is to ensure that it is deliver safely by local wires companie.