With the passing of State Senate Bill SB7, electricity competition became effective in Texas on January 1, 2002. This has created lower prices, renewable energy choices, better services, and additional customer service benefits for Texas consumers.

Prior to competition, one utility managed the transmission, distribution and sales of electricity to your home or business. Today, your local wires company still maintains the transmission and distribution of your electricity, while another company (Retail Electric Providers) handles the sells and billing of your electricity.

The Public Utility Commission still regulates the delivery of electricity to ensure the safety and reliability of your electric service.

Electric Reliability Council of Texas (ERCOT) is the corporation comprised and governed by a board of directors from investor and municipally own electric utilities, generators, independent members and consumers. Their mission is to maintain and ensure the reliability of the power grid that operates in the State of Texas. Essentially, they make sure you get the electricity you need into your home or business.

According to www.ercot.com; "Texas' main electric power grid is a 38,000-mile network of long-distance, high-voltage transmission lines and substations that carries bulk electricity to multiple utility companies for distribution to their customers. This grid, which has an overall generation capacity of about 78,000 Megawatts, delivers approximately 85 percent of Texas' overall power usage to 20 million Texans (7 million total electric customers or meters). ERCOT is here to maintain and ensure the reliability of the power grid that operates in the State of Texas. They make sure you get electricity into your home or business. ERCOT is one of the regional reliability councils in North America and enforce reliability standards for the electricity grid and utility operations."

The ERCOT power grid covers about 75 percent of Texas and about 85 percent of the electricity load in Texas. They manage the scheduling and financial settlement of power onto this electricity grid and the delivery of that power over the transmission lines. ERCOT is comprised and governed by a board of directors from investor and municipally own electric utilities, generators, independent members and consumers.

The PUC of Texas is responsible for overseeing the entire electricity system in Texas. It is run by one Chairman and two Commissioners all appointed by the Governor of Texas. The PUC enforces rules and regulations for retail competition, including customer protections, the "Price to Beat", and implementing renewable energy goals. It is set up for your protection and to oversee electric competition in the State of Texas.

The PUC also handle the licensing and rules enforcement to retail electric providers. They are responsible for regulating the rates and terms for the Transmission and Distribution Service Providers (TDSP) and overseeing and monitoring the ERCOT market by, among other things, reviewing proposals for the construction of new transmission facilities. The mission of the Public Utility Commission of Texas is to protect customers, foster competition, and promote high quality infrastructure.

You can contact the PUC by going to: www.puc.state.tx.us

The TDSP or Wires Companies transmits and delivers the electricity to your home or business along the poles and wires. This company is responsible for maintenance and repair of these poles and wires and regulated by the PUC. They are responsible for carrying the electricity to a transformer via cables where it is converted from low voltage to high voltage for more efficient transmission over long distances. High voltage transmission lines carry the electricity over long distances to substations at or near the point of use. Substations convert the electricity from high voltage to lower voltage electricity which is then moved through distribution lines to consumers by the Transmission and Distribution Providers.

In the event you have a power outage, call your electricity delivery company from the list below:

• TXU Energy Delivery (Dallas/ Ft. Worth Service Area): 888 313 4747
• Centerpoint Energy (Reliant Service Area): 800 332 7143
• AEP (CPL - South Texas Service Area): 866 223 8508
• AEP (WTU - West Texas Service Area): 866 223 8508
• Texas New Mexico Power (First Choice Power): 888 866 7456

If you are located in one of the areas below, you now have a choice!

• TXU Electric Delivery Service area includes these cities: Arlington, Dallas, Fort Worth, Irving, Midland, Odessa, Plano, Richardson, Round Rock, Tyler, and Waco.
• Centerpoint Energy Service area includes Baytown, Galveston, Houston, Humble, Kingwood, Pasadena, and Sugar Land.
• AEP South (CPL Retail Energy) Service area includes Brownsville, Corpus Christi, Harlingen, Laredo, McAllen, San Benito, and Victoria.
• AEP North (WTU Retail Energy) Service area includes Abilene, Alpine, San Angelo, and Vernon.
• TNMP (First Choice Power Area) Service area includes Lewisville and various cities throughout Texas.

If you have questions that aren't covered here, please feel free to contact us.

Q: Will the reliability of my electricity be affected if I change providers?

A: No matter which Retail Electric Provider you choose, your electricity will continue to be delivered by the same reliable local wires company. The local wires companies are still regulated by the PUC and they maintain the "wires" into your home or business. If you do have a power outage, it won't come back on any faster whether you have switched providers or not. The local wires company is still responsible for the maintenance and repair of your electric service. You will still call them in the event of an emergency or outage at the number provided on your bill.

Q: What has changed with deregulation?

A: You now have a choice in your electricity provider. You now have control as to who bills you for the electricity you use in your home or business. That's the main idea behind deregulation -- giving you the customer more choice and more control.

Q: What if I pick an electric company that eventually goes out of business? Will I lose power?

A: No, you will not be without power. You should actually receive a notice from your provider if this is going to happen, but if something happens and you don't -- you will still have power. The PUC has listed a provider of last resort for those unfortunate events such as this. They will become your provider until you can make a choice in a new provider.