What is Deregulation in Texas?

In the past, one company provided all of the parts of the electricity service to your home. This included generation, transmission, distribution, and retail sales. Now that the electricity market has been deregulated in Texas since 2002, the companies responsible for generation, transmission, and retail sales are separate entities. Since there is competition for the retail component of your electricity service, you have the power to choose which company will serve as your Retail Electric Provider (or REP).

The Transmission & Distribution Service Provider (TDSP, also known as the utility company) for your area will continue to service your electricity poles and wires, and should be contacted in the event of outages. There are 5 different TDSPs that service Texas: Oncor Electric Delivery , CenterPoint Energy, TNMP, AEP North, and AEP Central.

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