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How Texas Energy Providers Power Your Home

Posted on by Everything Energy 2 minutes 50 seconds

Have you ever wondered how Texas energy providers actually power your home? Everything Energy is here with all the info! 

Deregulation and Texas energy providers

The first thing you should know is that most of Texas’ energy sectors have been de-regulated. For a long time, utilities had a monopoly on the state’s power supply chain. This included generation, transmission, distribution, metering and billing. But this all changed in 2002 with deregulation. 

Now, one entity does not control the entire supply chain. Instead, there are three main groups involved in getting power to your home: 

  1. Power generation facilities
  2. Retail Electricity Providers (REPs) (also known as Texas energy providers)
  3. Transmission/Distribution Utilities (TDUs) [You may also hear these referred to as Transmission/Distribution Service Providers (TDSPs).]

Power generation facilities

The electricity Texas uses originates at generating facilities. The three major groups of energy sources are fossil fuels, nuclear energy and renewable energy.


The part of deregulation that most directly affects consumers is REP choice. We have the power to choose Texas retail electricity providers that meet our needs. These providers offer many rates, benefits and options to choose from.

REPs buy electricity at wholesale prices from generation facilities. Then, they resell it to consumers. They also send you your electricity bill. 

REPs compete with each other to earn your business.


TDUs (or TDSPs) are the companies that actually deliver electricity to your home. They operate and maintain the poles, wires and meters.

So, who do I call during a power outage? My utility, or my Texas power company?

On first though, you may think you should report a power outage to the company that sends you your electricity bill. But Texas energy providers don’t handle this issue. Remember, the utility company maintains the poles and wires. If you call your REP, they will tell you to reach out to your TDU. So, it’s a good idea to know how to contact your utility if your power goes out.

Certain utilities serve different areas of Texas. Unlike your REP, you are assigned a utility based on your address. 

Texas has five utility companies:

(For information on outages in your area, simply click on your utility above.)

Why does choice of Texas energy providers matter?

Energy deregulation helps consumers. It takes away the monopoly of utilities. It also forces REPs to offer the most competitive prices. And, partly due to the intense competition among REPs, it forces them to provide better, more customized services to meet people’s unique lifestyles. They are all aiming to be among the best electricity companies in Texas.

Additionally, choice of Texas energy providers matters because it gets you gives you a voice. You can weigh in on the clean energy conversation. For example, some Texas energy companies offer electricity plans with 100% renewable content, from sources like the wind and sun. Other companies offer partial renewable content, while some plans contain a minimal amount of clean energy. Plan choice reflects consumer preferences, affecting the energy sources used by generation facilities.

consumer preferences, affecting the energy sources used by generation facilities.

How do I know which of the Texas energy providers to choose?

Shopping for an REP to power your home used to be complicated and confusing. Now, with innovative tools from Everything Energy that help you narrow down your options, it’s easy to find the plan and Texas power company that best fit your lifestyle and budget. 

Start your search today here.

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