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Understanding deregulated energy in Texas Understanding deregulated energy in Texas Understanding deregulated energy in Texas

Understanding deregulated energy in Texas

Understanding deregulated energy in Texas Understanding deregulated energy in Texas

Understanding deregulated energy in Texas

What is energy deregulation?

In most of Texas, the electricity industry is deregulated, which means you can purchase electricity from a retail electric provider of your choice.

In contrast, the remaining areas of Texas have a regulated electricity industry, where electricity is delivered to homes and businesses by a single utility company, without the power of choice.

Thanks to deregulation, the electricity industry is open to competition. This means you can shop for plans, compare prices and choose the retail electricity provider (REP) that best fits your needs.

Jump to:

Power of choice

History of deregulation in Texas

Benefits of deregulation

How is electricity delivered?

3 steps to getting power in your home

Reasons to choose Reliant

Deregulated cities in Texas

FAQs about deregulation

What happens when electricity becomes deregulated?  

Choose an electricity provider with Texas-sized power and stability.
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Power of choice

Deregulated energy markets allow you to select your energy provider, giving you the power of choice when it comes to who provides your electricity service. This is an important factor when considering which retail electric provider will best fit your specific needs. Electricity rates, contract plans and customer service can all vary depending on the energy provider. Thanks to electricity choice in deregulated markets, customers can tailor their electricity choices to best meet their budget and lifestyle.

History of deregulation in Texas

In the early 2000s, Texas became the first state in the country to deregulate its electricity market. Since then, more than 20 million electricity customers have chosen their electricity provider. Giving Texans the option to choose their electricity provider has led to competitive prices and more robust customer service. ERCOT (the Electric Reliability Council of Texas) is the entity that manages the deregulated electricity grid in Texas.

The Public Utility Commission of Texas (PUCT) is the state agency responsible for regulating and overseeing the Texas electricity market, including ERCOT.

Deregulation has also incentivized retail electric providers to continuously innovate in order to stay competitive. Renewable energy sources have also been encouraged by deregulation as customers can now choose a retail electric provider based on their renewable energy portfolio, allowing them to support green energy sources.

Benefits of deregulation

Graphic reflecting the before and after of electricity choice
Graphic reflecting the before and after of electricity choice

How is electricity delivered?

3 steps to getting power in your home

In deregulated areas, electricity is delivered to Retail Electricity Providers’ (REPs’) customers through a Transmission and Distribution Service Provider (TDSP). The TDSP, or utility company, is determined by the area in which the customer lives. The TDSPs in Texas are: CenterPoint, AEP Texas, Texas-New Mexico Power and ONCOR.

  • First, electricity is produced by generators, and Reliant purchases the electricity needed for its customers.
  • Then, electricity is transported from power plants through transmission towers and distribution lines until it arrives at your physical address.
  • Finally, Reliant offers the purchase of electricity to you through personalized plans to fit every lifestyle and budget, backed by award-winning 24/7 customer service.
The difference between a utility company and retail electricity provider

In Texas, there are several utility companies that electricity providers, such as Reliant, work with. Most commonly referred to as a TDSP (Transmission and Distribution Service Provider), other names for a utility company include: TDU (Transmission and Delivery Utility) and distribution service provider. An electricity provider, on the other hand, is also known as an REP (retail electricity provider).

Responsibilities of TDSPs & REPs

While both are equally important, TDSPs and REPs each have their specific roles and responsibilities in our Texas electricity market. Below you will find information about what each of their roles are and when you should call them.

TDSP is responsible for:
  • The transportation and delivery of power to your home or business
  • Maintenance of electrical equipment
Contact them to:
  • Report a power outage
  • Report a fallen pole or wire
  • Report a problem with your meter
REPs are responsible for:
  • Offering electricity plans
  • Providing customer service and billing
  • Processing payments
What makes Reliant different?

With Reliant, you can find budget-minded, innovative ways to personalize power, take control of energy efficiency and connect to what matters most.

Contact us to:

  • Get information about electricity plans available to you

  • Set up or connect your electricity service

  • Transfer your electricity service

  • Get answers to questions about billing

What is a kWh?

A kWh, or kilowatt-hour, is a unit of measurement for the amount of electrical consumption per hour. Knowing this can help you further understand your electricity usage and billing so you can choose the plan that is best for you. Calculating your monthly electricity usage in kWhs is easy. Just check out this video.

There are lots of reasons to choose Reliant

Plans for everyone

Whether it’s fixed-rate peace of mind or month-to-month flexibility, Reliant has a budget-friendly choice for you. Shop more plans

More than electricity

Count on Reliant to connect you with AC & Heat protection plans, home surge protection and whole-home generators.

Exclusive discounts and referral rewards

Enjoy discounted pricing on smart home products and backup-power devices. Plus, earn unlimited bill credits for referrals.2

Texas-sized strength and stability

Since 2001, millions of Texans have trusted Reliant. While other providers may come and go, we’re here for the long haul.

Care from the heart

Giving back to the community. Providing award-winning customer support. Just two of the ways we’re committed to all of Texas.

24/7 customer service

Call or chat with us online, any time of day or night. With Reliant, you’ll always connect with a real person ready to help.

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Moving to Texas?

If you’re new to the state, you may or may not have heard of deregulation, and depending on the location, you might be moving into an area that is deregulated. Reliant wants to simplify your moving experience by getting you acquainted with this topic. In a deregulated electricity market, you have choices that make electricity buying a lot more personal.

Deregulated cities in Texas

Alvin

Angleton

Bacliff

Bay City

Baytown

Bellaire

Brazoria

Brookshire

Burke

Channelview

Clute

Columbus

Crosby

Cypress

Deer Park

Diboll

Dickinson

Egypt

El Campo

Etoile

Freeport

Friendswood

Galena Park


Galveston

Hallettsville

Hitchcock

Houston

Humble

Jersey Village

Katy

Kemah

Kingwood

La Marque

La Porte

Lake Jackson

League City

Liverpool

Lufkin

Magnolia

Missouri City

Nassau Bay

Palacios

Pasadena

Pearland

Prairie View

Quintana

Richmond

Rosenberg

San Leon

Sargent

Seabrook

Sealy

South Houston

Spring

Stafford

Sugar Land

Surfside Beach

Texas City

Tomball

Webster

West Columbia

Wharton

Zavalla

Addison

Aledo

Allen

Alvarado

Alvord

Archer City

Argyle

Arlington

Athens

Atlanta

Aubrey

Azle

Balch Springs

Bedford

Benbrook

Blooming Grove

Bonham

Booker

Breckenridge

Buffalo

Burleson

Canton

Carrollton

Cedar Hill

Childress

Clarendon

Clarksville

Cleburne

Collinsville

Comanche

Commerce

Cooper

Coppell

Corsicana

Cross Roads

Crowell

Dallas

Decatur

Denison

Denton

DeSoto

Dublin

Duncanville

Edgewood

Edom

Electra

Ennis

Euless

Eustace

Farmers Branch

Flint

Forest Hill

Forney

Fort Worth

Frisco

Gainesville

Graford

Graham

Granbury

Grand Prairie

Grandview

Grapevine

Gun Barrel City

Haltom City

Henrietta

Hurst

Hutchins

Irving

Italy

Jacksboro

Kaufman

Keene

Keller

Knox City

Ladonia

Lake Whitney

Lake Worth

Lancaster

Lewisville

Lindale

Log Cabin

Mabank

Malakoff

Mansfield

McKinney

Memphis

Mesquite

Midlothian

Mineral Wells

Muenster

Munday

Nocona

North Richland Hills

Northlake

Olney

Paducah

Palmer

Paris

Perryton

Pilot Point

Plano

Pottsboro

Prosper

Quanah

Quinlan

Rainbow

Ranger

Red Oak

Reklaw

Richardson

Richland

Richland Hills

Roanoke

Rockwall

Rowlett

Royse City

Saginaw

Saint Jo

Seagoville

Shamrock

Sherman

Spearman

Springtown

Stephenville

Sulphur Springs

Terrell

The Colony

Throckmorton

Tyler

Van

Van Alstyne

Vernon

Waxahachie

Wellington

West Tawakoni

Westlake

White Settlement

Whitewright

Wichita Falls

Wills Point

Wolfe City

Yantis

Abilene

Albany

Alpine

Andrews

Anson

Aspermont

Baird

Ballinger

Balmorhea

Barksdale

Big Lake

Big Spring

Bronte

Christoval

Cisco

Clyde

Colorado City

Comstock

Crane

Cross Plains

De Leon

Dickens

Dumas

Eagle Lake

Eastland

Eden

Eldorado

Fort Davis

Fort Stockton

Hamlin

Haskell

Iraan

Kermit

Lajitas

Lamesa

Leakey

Marfa

Menard

Merkel

Midland

Monahans

Odessa

Ozona

Paint Rock

Pecos

Presidio

Rankin

Robert Lee

Rocksprings

Rotan

Ruidoso

Rule

San Angelo

Santa Anna

Sheffield

Snyder

Sonora

Spur

Stamford

Sweetwater

Terlingua

Winters

Bellmead

Belton

Brownwood

Burnet

Cameron

Cedar Park

Centerville

Clifton

Copperas Cove

Crockett

Devine

Early

Elgin

Flo

Gatesville

Hamilton

Harker Heights

Hillsboro

Hubbard

Hudson

Huntington

Jewett

Johnson City

Junction

Killeen

Lacy Lakeview

Laguna Park

Leona

Malone

Manor

McGregor

Milano

Milford

Nacogdoches

Neches

Palestine

Pflugerville

Rockdale

Round Rock

Round Top

Salado

Seguin

Taylor

Temple

Waco

Wells Branch

Whitney

Wimberley

Woodway

Alamo

Alice

Aransas Pass

Arroyo City

Austwell

Beeville

Bishop

Brackettville

Brownsville

Carrizo Springs

Corpus Christi

Cotulla

Crystal City

Del Rio

Dilley

Donna

Eagle Pass

Edinburg

Edna

Escobares

Falcon Heights

Falfurrias

Freer

Fulton

George West

Goliad

Harlingen

Hebbronville

Hidalgo

Ingleside

Jourdanton

Karnes City

Kenedy

Kingsville

La Feria

Laredo

Los Fresnos

Lytle

Mathis

McAllen

Mercedes

Mission

Odem

Orange Grove

Palmview

Pearsall

Penitas

Pharr

Pleasanton

Port Aransas

Port Isabel

Port Lavaca

Port Mansfield

Port O'Connor

Portland

Premont

Rachal

Rancho Viejo

Raymondville

Refugio

Rio Grande City

Rio Hondo

Riviera

Riviera Beach

Rockport

Roma

Sabinal

San Benito

San Juan

Sandia

Seadrift

Sinton

South Padre Island

Taft

The Rio Grande Valley

Three Rivers

Tivoli

Tuleta

Uvalde

Victoria

Weslaco

Yorktown

Zapata

The electricity company Texans trust is coming to Lubbock

Find out how we're making the transition to electricity choice for parts of Lubbock easy. 

Learn more

FAQs about deregulation

Show all answers

Deregulation has a positive effect on the energy market because it increases competition amongst REPS, which can lead to lower prices and improved customer service. Additionally, deregulation can also create more jobs within the energy sector as new businesses enter the market. It can also result in fewer government subsidies and less government intervention in certain sectors.

Deregulation promotes consumer choices by increasing the number of options available in the market. This allows you to find services that meet your needs at competitive prices. Additionally, deregulation can make markets more open and transparent, which allows you to compare different products more easily.

Deregulation of the electric grid can improve efficiency in the electricity sector by allowing innovative technologies like distributed power generation and renewable energy to enter the market. It can help reduce power plants and greenhouse gas emissions by incentivizing the use of renewable energy sources.

Terms, conditions and other restrictions

1 Requests processed after 5:00 p.m. Central Time will be connected the next business day. Same-day service is offered Monday through Saturday, weather permitting, where an existing meter is in place. No connections on holidays. Enrollment and permit requirements must be met before a request can be processed. Additional charges apply.

2 Referral bill credit amount will vary based on our current promotional offer. Referrals may only be submitted by active Reliant residential customers with a Texas service address. To qualify for bill credit, referrals must be new Reliant residential customers in Texas enrolled in a term plan with a minimum often days of active electricity service on that plan. Bill credit will be applied within two billing cycles after the referred customer has completed ten days of active electricity service. Bill credit not redeemable for cash. Any disputes relating to eligibility will be determined solely by Reliant. Reliant may modify or discontinue this program at any time without notice. Additional terms and conditions apply.