Texas Electric Choice refers to the ability of Texas residents to choose their electricity provider. Texans can shop plans from Retail Electricity Providers (REPs) and choose the best plan for their needs.
On January 1, 2002, Texas deregulated its energy market. The state Senate approved Bill 7 that began phasing in deregulation. As a result of Bill 7, about 85% of energy consumers in Texas are in a deregulated market area.
The purpose of deregulation is to create a competitive market that forces electricity providers to offer lower pricing to stay competitive. When Gov. George W. Bush signed Senate Bill 7 he echoed this idea by stating that “Competition in the electric industry will benefit Texas by reducing monthly rates.”
Most Texans live in a deregulated electricity market. The two largest metropolitan areas with a deregulated market are Houston and Dallas. Austin and San Antonio on the other hand, are the two largest cities with a municipal cooperative.
Not sure if you live in a deregulated area of Texas? You can look up your zipcode here. Here’s a complete list of deregulated energy cities in Texas: