Energy deregulation in Texas has been fixed in place for more than ten years already and has given the people of this state as well as others the power to choose their electric company or retail provider. Although the Texas consumer gained some unique advantages with the deregulation of Texas electric companies especially on retail distribution, few people are still doubtful about how the process of energy deregulation works especially for electric companies and another player in Texas’ energy market.
To completely understand how energy deregulation works, the customer should have a strong understanding of what kind of roles each player in the energy market has. In its most primary sense, energy deregulation uses just to the retail providers, with the manufacturing and transmission element remaining intact and unaffected. Each of the basic elements in the market: generation, transmission, and retail – each of which is a clear electric company in itself – plays a primary role in assuring that the Texas customer receives electrical energy efficiently and reliably.
A Historical Perspective
During the ancient days of energy grid monopolies and before energy deregulation was ever fixed in place, a single electric company provided whole the elements of the utility from generation, to transmission and distribution and eventually to retail. When energy deregulation was institutionalized, it revolutionized the energy market in different countries like Texas and California where the system was completed and created greater competition among existing and emerging electric companies.
Energy deregulation also paved the best way for renewable and considerably inexpensive electricity best sources to enter the energy market, resulting in more options for customers particularly the option to adopt environmental pleasant sources of electrical energy.
The Current Structure in Texas
The following explains the currently deregulated structure of electrical power generation and distribution in Texas and between Texas electric companies:
* Power Generation
All these electric companies are responsible for the generation of electrical energy through different means involving the use of fossil fuels, coal, biomass, hydroelectric, natural gas, nuclear, solar, and wind energy. Power generation is not affected by energy deregulation as these energy plants produce and sold to the distribution and retail electric supplier. These Texas electric companies, especially the leading wind energy generators in the country, supply an important portion of energy capacity not just for Texas but for other parts of the US as well.
* Transmission and Distribution
Texas electric companies accountable for transmission and distribution are known as Transmission / Distribution Service Providers. These companies remained similar after energy deregulation was implemented as they continue to have whole charge and maintenance of electrical transmission infrastructures. Transmission / Distribution Service Provider continues to be responsible whenever electrical lines are down and will supply the repair and maintenance required should this eventuality take place. The electricity they own can also be sold to the retail providers aside from charging them monthly maintenance service charges, Read more details about Express Energy Reviews.
* Retail Distribution
Texas electric companies that were immediately affected by energy deregulation are the Retail Electricity Providers. These are the entities that sell electrical service to customers, whose accounts can be monitored through the monthly electrical bills sent to them by the Retail Electric Providers. These companies turn a special service on or off and is responsible for directly communicating and interacting with end clients. Energy deregulation spawned the emergence of different Retail Electricity Providers which compete for customer attention through huge discounts, rate plans, incentives, renewable energy choices and quality of consumer service.
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