Energy deregulation is a term that describes the process of breaking up monopoly utilities and opening them to competition. For many Texans, this means they are now able to choose where they buy their electricity from instead of being tied to one company. This blog post will explore what that means for people in Texas and how it might affect you.

This blog post would be helpful if you have been wondering about energy deregulation or want more information on how it may affect your life as an average person in Texas. I am excited at the prospect of having more options when it comes to choosing my power supplier, so hopefully, this can help other Texans who feel the same way!

What Energy Deregulation Means for Me as a Consumer

Without energy deregulation, electricity and energy companies in Texas were monopolized. This meant that the prices were high and there was no competition to drive prices down. Today, energy deregulation gives Texans the freedom to choose their own energy supplier instead of being tied down to one company. As a customer, I now have more power over how my energy bills are calculated and who will supply them to me.

What Areas are Deregulated?

Currently, only certain parts of Texas have been opened up to energy deregulation; this is due largely in part because energy deregulated plans may not be compatible with areas where electricity has remained regulated by the Public Utility Commission (PUC). Areas like Austin, Dallas-Fort Worth/Arlington, Houston, and San Antonio are energy deregulated areas. In the energy deregulated areas, energy companies will compete for your business by offering energy plans that feature different pricing structures and benefits (such as green energy). You may even be able to choose between fixed energy rates or variable energy rates depending on how much risk you want to take.

Comparing Energy Suppliers

Furthermore, energy deregulation allows me to choose my energy supplier and electricity plans based on more than just pricing per kWh. There are many reasons why someone would prefer one energy company over another such as quality of service, environmental friendliness/sustainability, customer service, etc. Once electricity is fully opened up to the competition in Texas (which could happen soon), customers will be able to pick their electricity plan based on more of what they care about. The energy suppliers may also become more creative with energy plans and energy offerings that are tailored to specific needs such as energy autonomy (microgrids/solar energy) or energy efficiency (appliance, lighting, building upgrades).

Things to Keep in Mind

When evaluating energy deregulation in Texas, keep in mind: there are reasons why some power companies charge per kWh while others charge based on your overall electricity usage (otherwise known as energy plans). The electricity bills of energy company customers with energy plans can be higher than the average energy customer’s bill. This is because energy suppliers base their energy rates on your overall energy usage and not just how much electricity you actually use; this is to ensure that they will make money even if you pay only for part of your energy plan (and end up using less than what was expected). Although it may seem like a bad deal, fixed-rate energy programs do have their advantages such as predictable electricity costs over a longer period of time or lower monthly charges.


In summary: energy deregulation means energy prices will be lower and there will be more energy companies to choose from. For Texas energy consumers, energy deregulation means that we no longer have to pay high electricity rates because of monopoly energy companies. In areas where energy is opened up to competition, customers can now compare energy providers based on what they want out of their energy plans (fixed rate vs variable rate) and other features like service quality or renewable energy options.