Electricity Basics

The Competitive Electricity Market
In the past one company provided all parts of your electricity service (generation, transmission and distribution, and retail sales). With competition, these parts are separated into different companies.

Retail Electric Providers (REPs)/Electric Companies
With electric competition, retail electric providers (also known as "REPs") sell electricity to you and routinely handle customer service and billing. REPs compete for your business by offering a variety of different pricing options, renewable energy options, added customer service benefits or other incentives.

Note: Not all areas of the state are open to competition. The PUC has delayed retail competition for customers of Entergy Gulf States, Southwestern Public Service Company, El Paso Electric Company, and AEP SWEPCO because the PUC has determined that there is not adequate competition in the wholesale electricity market for retail competition to work successfully in these areas. Electric cooperatives and city-owned utilities may decide whether their customers will have a choice of Retail Electric Providers. Customers in these areas should contact their electric cooperative or city utility for more information.

Power Generation Companies
Power Generation Companies own and operate power plants, including plants fueled by coal, nuclear power, natural gas, wind, water, solar power, or other renewable sources. Power Generation Companies sell this power at wholesale to Retail Electric Providers, who package the power with transmission and delivery service for sale to retail customers. Retail Electric Providers are not permitted under Texas law to own power plants; however, they can be affiliated with a power generation company.

Transmission and Distribution of Electricity
Regardless of which Retail Electric Provider you choose, the actual delivery of the electricity ("transmission and distribution") is still provided by your local Transmission and Distribution Service Provider, (also referred to as the "TDSP"). Your TDSP will continue to be responsible for maintaining the poles, wires, and meter that deliver and measure the electricity consumed by your home or business, for reading your meter and providing amount of electricity that you consume to your REP, and for restoring service when there is a power outage.
Your choice of REP does not affect the reliability of your transmission and distribution service or how quickly your power will be restored following an outage caused by a storm or other event. The Public Utility Commission continues to regulate TDSPs by setting the rates for transmission and distribution service, setting reliability and safety standards, and ensuring that all customers and REPs are treated the same when it comes to the delivery of electricity to your home or business.

Repairs and Emergencies
If you experience an emergency related to your electricity service or a power outage, call the number printed on your electric bill for repairs and emergencies. The local TDSP will repair your service or restore your power just as they will your neighbors' service - regardless of your Retail Electric Provider. There is no special treatment or priority in service restoration for customers of any particular Retail Electric Provider.

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