Texas Electric Choice is the power given to Texans to choose their own Retail Electric Provider. Who has the Power to Choose in Texas? Well, about 75% of the state of Texas has been given the power to choose their Electric Company, when prior one Electric Provider controlled/managed the transmission, distribution, and sale of electricity to residential and commercial locations. The Deregulation of Texas Electricity became effective in Texas January 1, 2002 with the passing of the Senate Bill SB7, so you now as a Texas electric consumer have the Power to Choose.

History of Deregulation

Before the Texas Senate Bill 7 (SB7) was passed on January 1, 2002 electricity consumers didn’t have the option to choose who they received electricity from. But now with the Deregulation of Texas Energy it has broken down the market into several different Retail Electric Providers forming competition and lower electricity rates for consumers throughout Texas. Over 75% of Texas has been given the power to choose their own Electric Provider, and millions of Texans have already exercised their right to choose.

The Following Areas now have the Power to Choose

• 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.

Why Should You Switch?

People all over Texas have been exercising their power to choose their own Retail Electric Provider (REP). Various different Electric Providers and plans exist out there along with various different types of plans that may be right for you. However, if you are happy with your REP and/or under a long term contract with your current REP switching may not be for you at this time. Before you decided whether switching is right for you, here are a few questions you should consider before making the switch.

• Do I have a contract with my current REP and is there a cancellation fee?
  First call your current REP to find out if there is any cancellation fees you may
  have to pay for canceling a contract. Sometimes the amount you will save is far
  greater than the cancellation fee.
  
• Am I satisfied with my current REP?
  If you are currently happy with your REP and current rate maybe switching isn't
  for you at this point. You should still contact your current REP to see if they offer
  and plans that are right for you and can save you money.
  
• Will I have to pay a deposit?
  Depending on your payment and credit history you may be required to put down
  a deposit before being able to make the switch. Although you will get the deposit
  back over time, it is up to you to decide whether it is worth making the switch.
  
• What if I miss a payment?
  Retail Electric Providers have the option to turn off your electricity after giving you
  a notice about your miss payments. If your current REP has offered to give you a
  payment plan, you may consider staying because not all REP will be so flexible.
  
• Does it cost me anything to switch REPs?
  No, it doesn't cost anything to switch Electric Providers, but the switch will not
  occur till after your next scheduled meter reading. You have the option to
  schedule an early meter reading, but your REP may charge an early meter
  reading fee. You will also have to pay all fees and balances with your current
  REP before officially making the switch.
  

How to Switch?

Once you’ve decided that a Retail Electric Provider’s (REP) offer is right for you, the switching process is simple to do. First thing you should do is contact the Retail Electric Provider you wish to switch to, and sign up for them either by phone or their website. Next the REP will send you a “Terms of Service” agreement, which will now be your new service contract with that REP.  Before signing the “Terms of Service” agreement with that REP, be sure to carefully review it. Once you have received the agreement you’ll only have up to three business days to cancel without penalty, if your Terms of Service has a penalty for cancellation.

When will my switch occur?
Before your new service can go into effect you will first have to wait for your next scheduled meter reading, this could take up to two billing cycles. An alternative to this is to request an earlier meter reading, but your REP may charge an early meter reading fee.

Will my power go out during the switch?
No, you can rest assured that while switching providers your power will not be interrupted. When switching Providers you are switching the company that sells you your electricity, not the company that maintains and delivers power to your home and/or business.

In Case of Power Outage:

• 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

Components of your Plan

Contracts and Terms
All Retail Electric Providers (REPs) operate differently and use various forms of plans. Some REPs may use a no minimum contract period similar to a month-to-month type of plan, while others may offer plans with contracts with extended periods of time ranging anywhere from three or more years. It is crucial to understand what type of plan you are signing up for before making the decision. Be sure to know what happens at the end of your contract with your current REP and ask questions if you are unsure.

Fixed Rates
Fixed Rate Plans are plans with set rates that remain the same throughout the term of your contract with that Retail Electric Provider. These types of plans can give certainty that your rate will change during the course of your contract. This means your rate will not rise, but also means your rate will not fall as well until the end of your contract

Variable Rates
Variable Rate Plans are plans with electricity rates that can both rise and fall based on the monthly changes in the electricity market. An advantage to a plan like this is that you can benefit from a drop in the market prices. However a Disadvantage is with the rise in natural gas and electricity prices due to natural disasters and cold winters the rate of your electricity can rise

Renewable Green Energy
Renewable/Green Energy is the term used to describe the type of energy that is considered to be environmentally friendly, and non-polluting to the earth. Renewable energy is energy that is generated by a natural resource such as: wind, solar, hydroelectric, geothermal, landfill gas, and biomass.

Knowing the Language

Definitions from Power to Choose

Affiliated Retail Electric Provider
The Affiliate Retail Electric Provider was part of the original electric company that generated and sold electricity in your area. Now, the Affiliate Retail Electric Provider only sells electricity and provides customer service. It does not operate or maintain distribution and transmission wires.

Demand
The amount of electricity used at any given instant or averaged over a designated period of time. Demand is usually in measured in kilowatts or Megawatts. The Peak Demand is the highest 15 or 30 minute recorded demand period over 12-months.

Electric Cooperative (COOP)
Customer-owned electric utility that distributes electricity to its members.

Electricity
The free flow of electrons. Electric generators convert mechanical energy into electric energy. Electrical energy is the generation or use of electric power over a period of time, usually expressed in kilowatt-hours (kWh) or megawatt-hours (mWh).

Electricity Facts Label
A standardized format sheet of information required by the PUC that provides customers with disclosure information on a Retail Electric Provider's prices, contracts, sources of power generation and emissions. This information will give you a better comparison of electricity offers from competing Texas Electric Providers.

Electric Reliability Council of Texas (ERCOT)
The corporation comprised and governed by a board of directors from investor and municipally own electric utilities, generators, independent members and consumers 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.

ESI I.D. (Electric Service Identifier)
A unique number in the ERCOT market given to an electricity delivery point by the TDSP. You can find this number on your electricity bill.

Generation
The production of electricity. Electricity in Texas is generated from natural gas, nuclear, coal, wind, water, and solar energy. Since 1995, Texas has built or has under construction, some 27,000 MW of generation capacity and is projected to have reserve margins in excess of 25% through 2006.

Kilowatt-Hour (kWh)
A measurement of energy equal to one kilowatt (kW) of power for a one-hour duration. This is the amount of electricity providers charge you on your bill for each billing period.

TDSP (Transmission and Distribution Service Provider)
Transmits and delivers the electricity to a customer's 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.

Municipally or City Owned Utility
A non-profit electricity provider that is owned and operated by the municipality it serves. Texas city-owned utilities may decide whether or not their customers will have a choice of REPs. Customers should contact their electric cooperative or city utility for more information.

Price to Beat
Set by the Public Utility Commission of Texas, Residential and small commercial customers of the Affiliate Retail Electric Provider receive a standard rate offering for their electricity. This is designed to give customers a discount and foster competition amongst Retail Electric Providers to offer lower rates.

Provider of Last Resort
The Provider of Last Resort becomes your provider when a Retail Electric Provider exits the market for any reason. If this happens, customers may switch back to the Affiliate Retail Electric Provider or establish service with a new Retail Electric Provider.

Public Utility Commission of Texas (PUC)
The state agency that is responsible for the regulation and oversight of electric services in Texas. The Public Utility Commission regulates the delivery of electricity to ensure the safety and reliability of your service. The mission of the Public Utility Commission of Texas is to protect customers, foster competition, and promote high quality infrastructure.

Renewable (Green) Energy
Electricity that is made from fuel resources from the environment, such as wind, water, or solar.

Retail Electric Provider (“REPs”)
A company that sells electricity to customers. All Retail Electric Providers must be certified to do business by the Public Utility Commission of Texas.

Terms of Service
Contract between a Retail Electric Provider and a customer that outlines fees, length of service and other important information.

Usage
The measurement of electricity used during the billing cycle listed in kilowatt-hours (kWh) on your electric bill as kWh.

Your Rights As a Customer Disclosure
A document that informs you of your rights as mandated by the PUC. Retail Electric Providers must provide you with this disclosure.