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Energy Information
Texas Electric Power Deregulation The passage of Senate Bill 7 in 1999 by the Texas State Legislature deregulated the electricity industry and on January 1, 2002 the market officially opened for competition. Texas electric customers could now choose which electric provider they would buy their electricity from. This changed how the electricity industry operates and it has created an opportunity for the largest transfer of wealth our generation will ever see. How does energy deregulation work? Prior to deregulation, one company was responsible for all aspects of your electric service including generation, delivery and sales. Since deregulation, these parts have been separated.  The generation or production of electricity is deregulated. Generation plants across the state transmit electricity into the distribution network called “The Grid,” which is managed by the Electric Reliability council of Texas, or ERCOT. Retail Electric Providers, or REP’s, are licensed by the state of Texas to sell electricity to customers from “The Grid.” REP’s include TXU Energy, Reliant Energy, CPL, WTU, First Choice and Ambit Energy. Your local electric company, such as TXU, must offer a standard rate to customers for electric service called the “Price to Beat,” which is set by the Public Utility Commission. Competitive Retail Electric Providers, like Ambit Energy, now have the flexibility to offer competitive rates with this price. Local wires companies are still responsible for the poles and wires and the electric power in your neighborhood. If you have a power outage, these companies will restore the power regardless of who you buy your electricity from. A list of local providers and local delivery companies are:
Deregulation allows electric customers to choose their own electric providers, while still retaining the dependable service of the local poles and wires companies. If you’ve never switched your electric provider before, you may be paying too much for electricity. Typically if you had been in a contract with one of the incumbent electric companies (TXU in the Dallas and surrounding area, and Reliant in the greater Houston area) and your contract expired, you would automatically default to a variable rate plan. Being on a variable plan in Texas in the winter will not make a significant difference in your bill because you don’t use as much electricity, but in the summer it can be quite costly. Some companies also charge a “customer service charge,” up to an additional $6.00 per month, which has nothing to do with the amount of energy you used. Take time to compare energy prices and switch your provider and lock into a 3, 6 or 12 month fixed-rate contract so you know exactly how much you’ll be paying per kilowatt. TexasLightCompany.com has switched thousands of customers safely and easily with no charge to them and has saved them up to 28%. Our service is guaranteed to have a smooth transition. If we disconnect your service during the switching process, we will pay your first month’s bill. New York Gas and Electric Deregulation New York has also deregulated in certain areas for gas and electric. One customer actually switches both gas and electric at the same time. Service is available in the territories that are serviced by ConEd and National Grid. There are more than 6 million households that are available for this service. Illinois Natural Gas Deregulation Illinois has deregulated for natural gas in the Nicor Gas service area, where there are more than 2.1 million potential customers. No matter what deregulated state you live in, TexasLightCompany.com offers personal customer service where you will get a phone call and email 30-60 days in advance of your contract expiring letting you know when your contract is up and what current rates and plans are available. We can easily assist you to lock in at the best rate for the upcoming months with the maximum savings so you don’t end up in a much higher variable rate.
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