The History of Electricity Deregulation in Texas

Texas is a massive electricity market, the largest in the country. In fact, if Texas was a country, it would rank as the 11th highest in the world for electricity consumption. So, when Texas decided to deregulate its electricity market back in 2002, it was big news.

What is Electricity Deregulation?

Electricity deregulation allows multiple companies to compete for business in an electric market. Under deregulation, customers purchase electricity service from a Retail Electricity Provider (REP) that purchases power from a power plant and takes care of billing and customer service. The power itself is still transferred over the same power lines from the local wires and poles company, making the switch painless for consumers. REPs compete on price, service and renewable energy options, giving consumers more choice and lower prices.

How Did Electricity Become Deregulated in Texas?

The process of Texas deregulation started back in 1999 when Texas state senator David Sibley introduced legislation that would eliminate regulated electricity rates and break monopolies in the electricity market with the goal of lowering energy prices. This was Senate Bill 7, and after much debate it finally became law on January 1st, 2002. Since deregulation in Texas took effect, about 40 percent of Texas households and 85 percent of Texas businesses have switched electricity providers at least once.

Who in Texas is Affected By Electricity Deregulation?

Deregulation affects most regions in Texas. Anyone served by an electric company that is not owned by a municipality or utility cooperative (unless they have decided to opt-in) has the power to choose. Not sure if your area is under private or public control? Keep reading to find learn how to find out if you have the ability to switch providers.

How Do I Take Advantage of Deregulation in Texas?

The first step is to discover your options. By entering your address at WhiteFence.com, you can easily find out what your electricity service options are. Once you compare the available providers and plans and make a decision, you can order your service directly on the site and have everything switched over within seven business days without interruption.

To learn more about energy deregulation, check out the deregulation section here on WhiteFence Energy.