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    Electricity Education Center

    Learn more about Texas electricity deregulation so you can make an informed decision that meets  your electricity needs.

    We are here to help you understand your options and help you save money on your energy costs.


    Q: Will the reliability of my electricity be affected if I change providers?

    A: No matter which Retail Electric Provider you choose, your electricity will continue to be delivered by the same reliable local wires company. This aspect of deregulation has not changed. The local wires companies are still regulated by the PUC and they maintain the “wires” into your home or business. If you do have a power outage, it won’t come back on any faster whether you have switched providers or not. The local wires company is still responsible for the maintenance and repair of your electric service. You will still call them in the event of an emergency or outage at the number provided on your bill.

    Q: What has changed with deregulation?

    A: You now have a choice in your electricity provider other than your affiliate electric provider. You now have control as to who bills you for the electricity you use in your home or business.  That’s the main idea behind deregulation – giving you the customer more choice and more control.  Just as other industries have deregulated, like airline travel, electricity was deregulated to give customers a choice. Exercise your freedom to choose! The more people that take advantage of deregulation – the better it will be for everyone. More competition drives down prices – therefore electric companies will lower their prices to keep you as a customer.

    Q: Can anyone in Texas change to a new electric provider?

    A: Unfortunately that is not the case. Our electric grid in Texas is very interesting. Texas ERCOT system grid was deregulated, but it does not cover all of Texas. That’s the grid that deregulated. Plus, many city-owned utilities and electric cooperatives that operate inside this grid have the option of allowing their customers a choice of providers, but most of them have decided not to open their area up for competition. Those residing inside an electric cooperative or city-owned utility should contact the number on their bill to find out more information. The good thing here is that most cooperatives and city utilities actually provide their customers with competitive rates for service.  See if you have a choice, check out the  Texas Deregulation Service Area Map.

    Q: Will what happened to the people in California happen to us Texans?

    A: No, California really just doesn’t have enough power to go around. They have only built two power plants to our 47 since 1995. Plus, on your behalf, the PUC has also instituted much stronger consumer protection rules for those in Texas and much higher qualifications for retail electric providers that operate in Texas.

    Q: What if I pick an electric company that eventually goes out of business? Will I lose power?

    A: No, you will not be without power. You should actually receive a notice from your provider if this is going to happen, but if something happens and you don’t – you will still have power. The PUC has listed a provider of last resort for those of unfortunate events such as this. They will become your provider until you can make a choice in a new provider.

    How does the Texas electricity market work?

    Many of us simply want to flip a switch and have the light come on in our home or business.  Learn how electricity works in the Texas deregulated market.

    What is Texas Choice?

    Energy costs can have a significant impact on your family’s budget.  Click here to see what Texas Deregulation can do for you.

    What is Green Energy?

    Green energy is electrical power that is produced from clean, renewable energy sources. Renewable energy comes from sources.

    What effects the price of electricity?

    There are many factors that influence Texas electricity prices; weather, natural gas crude oil prices, and others.

    How do I choose the retail electric provider that is right for me?

    There are over 50 retail electric providers currently operating in the Texas market. We are here to help you find the provider that is right for you and your home.  The typical Texas family spends $1900 per year on home energy costs, and that figure is rising. Texas electricity suppliers have been  increasing their prices, and you need to do what you can to lower their energy costs more than ever.  Put together a complete energy savings plan in place for your home and reduce your electricity consumption.

    Learn More

    What is the residential electricity switching process?

    First, you need to select the retail electric provider that meets your needs. Please visit the Residential Electricity section of our website to select a provider. Once you have signed up with a new provider and accepted their terms and conditions, your new electric company will mail you a Terms of Service agreement and Your Rights as a Customer.

    You do not need to contact your current provider.  Your new electric provider will make all of the necessary requests. They will contact ERCOT and your current TDSP (wires company) to process the switch from your current provider. You will then receive a notification of your switch request in the mail. The actual changing of electric service should take place on the next meter read, unless you requested and paid for a special meter read date. Your old provider will continue to send you bills until you have paid in full and your service has been changed over.

    Once you have paid the final bill from your old electric company, you should start to see bills from your new electric provider. Congratulations! You have exercised your power to choose and made the switch.

    Learn the terms used in electricity deregulation with the Electricity Glossary.

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