Energy Deregulation in Texas
Giving you the power to choose your electric company.
Moving to Texas?
You may have noticed there are a lot of electricity options in the Lone Star State. That’s because Texas light companies—like Amigo Energy—operate differently from utilities in other states due to local energy laws. If you’re wondering what this means for you, we’ve got you covered. Below, we’ve provided a short history of energy deregulation in Texas, highlighted the key benefits, and outlined why you should choose Amigo Energy as your electric provider.
A Short History of Energy Deregulation in Texas
Before energy deregulation in 2002, the Public Utility Commission of Texas (PUC) provided electricity for practically the entire state.1 No competition led to higher rates and little incentive to foster technological advancement.
Since deregulation, dozens of new electric companies have opened up shop in Texas to meet a wide variety of consumer needs, serving around 85 percent of local residents.2 Now, instead of determining electric rates, PUC acts as an oversight body and consumer resource, running the Texas Power to Choose website.
A Timeline of Deregulated Energy in Texas3
The Public Utility Commission of Texas (PUC) Is Formed
PUC is tasked with providing statewide regulation of electric rates, among other utilities and services. Rates are controlled by a government agency.
Restructuring of Texas Energy Market
The Texas Legislature gives residents in limited areas the power to choose their electric service. PUC shifts more towards becoming a consumer resource.
Deregulation Is Signed into Law
Texas Senate Bill 7 is signed into law and deregulation starts to be phased in across the state. The Just Energy Group creates Amigo Energy to meet consumer needs.
Nearly 85% of Texans Can Choose Their Energy Service
Now most Texans enjoy the power to choose their Retail Electric Provider, helping make Texas the most successful retail energy market in North America.4
How Does Deregulated Energy Work in Texas?
In Texas, all the different aspects of energy production are now divided among various private businesses, which include Retail Electric Providers (REP) like Amigo Energy. Similar to Internet and phone companies, REPs supply electricity to homes and businesses.
Essentially, REPs buy energy from wholesale markets, use utility infrastructure to deliver energy to your home, and then handle all of your billing and electricity supply reporting needs. Now that customers have more than just one energy choice, they have the power to demand better customer service and lower rates, making Texas the best retail energy market in North America.5
How Amigo Energy Brings Power to Your Home
Utility companies generate electricity
Retail Electric Providers
REPs like Amigo Energy purchase electricity from wholesale markets
REPs then use Transmission and Distribution Service Providers to transport electricity to your home
Finally, smart meters record your supply-side energy usage and report it to your REP
What Are the Benefits of Deregulated Energy?
In Texas, light companies compete to offer the lowest price possible in order to gain a larger share of the energy market and increase their bottom line. In this way, electricity deregulation helps consumers get more competitive rates from better electric providers.
Custom Energy PlansMore competition also means more innovation in terms of the traditional structuring of energy plans. Thanks to deregulation, you can choose an energy plan that suits your needs. Perhaps even more importantly, you can lock-in competitive rates for longer periods, giving you more predictability and transparency.
More Renewable EnergyAfter deregulation, electric companies in Texas started offering green-energy options. In fact, out of the entire population of the U.S., Texans are the most aware of their renewable-energy options thanks to the spread of deregulated energy and the outreach efforts of Retail Electric Providers.6
Why Should I Choose Amigo Energy?
Given that there are so many energy options available in Texas, you may be asking yourself, “What makes Amigo Energy right for me?”
$25 Refer-a-Friend Bonus
Receive a $25 bill credit for each family member or friend you refer to us today, and they'll also get a $25 credit when they enroll over the phone.
My Amigo App
Mobile and online features from Amigo Energy are the best around. Stay up-to-date on your billing or manage your energy plan on-the-go with our free My Amigo app.
Weekly Usage Emails
You'll be able to save time and go green with paperless e-billing, and track your energy use with our weekly-usage emails.
No switching fees
Benefit from our extensive experience and quality service, which includes no fees to switch plans if your needs change.
Want to know more? Click here to learn more about residential electricity from Amigo Energy.