Everything One Should Know on Texas Deregulation

The Texas energy market went through a major revolution in 2002. Senate Bill 7 went into effect, which resulted in the deregulation of the energy sector. No longer could utilities determine the price of electricity. As supply and demand affects all other aspects of business, it now also affected the energy market. Prior to deregulation, utilities managed the price of electricity as well as its distribution, but after SB 7 took effect, retail electricity providers (REPs) could sell electricity to consumers. This drove Texas electric rates down, thanks to the competition between retail energy providers.
REPs all offer different plans and different rates. Some of the plans are month to month variable plans, where each month, your electricity rate per kilowatt hour could go up or down based on the market. They also offer fixed rate plans, where you lock in your rate for a set period of time, usually anywhere between three months and three years. Even if the market conditions change, your rate will stay where it is. These plans make it easier to budget your monthly expenses, but if you decide to back out of you plan before your contract expires, you could be hit with a cancellation fee.
In addition to the standard plans, REPs give you the power to choose green energy plans as well. Each plan on a REP’s website has an Electricity Facts Label (EFL) and this includes information on how much of the electricity coming to your home or business comes from renewable sources.
The primary goal of deregulation was to break the hold that utilities had over energy consumers. With more choices, people have more control over their electricity. Everything from cost to the type of electricity used can be picked based on your preferences. And Shop Dallas Electricity can help you jump into the market and pick the plan that works best for you.

Customers Now Have Options

As you may have already known, the energy industry has deregulated certain states giving them the power to choice another energy provider other than the local utility company. This is very beneficial to customers because it gives them the freedom of choice, or as it is known Texas; power to choose.

Customers have choices:

It does not matter if you are a residential or commercial customer; you can take advantage of electricity deregulation with a different Dallas retail electric provider other than the local utility.  Retail electricity providers (REPs) offer customized electric plans to accommodate the customer.

Types of Plans:

  • Fixed plans will not change during the term of your contract and customers usually favor this plan because they can lock in their electricity rate for the length of their plan.
  • Month to month (variable) plans are contract free plans that can fluctuate up or down depending on the market.
  • Renewable plans come from 100% renewable wind or solar sources that benefit the environment because they come from eco-friendly sources.

Compare and shop electricity plans amongst several different retail electric providers to find that plan that best suits your home or businesses energy needs.