|
The Electric Reliability Council of Texas operates the state power grid, overseeing the flow of electricity to over 27 million customers. Yet ERCOT does not directly participate in Texas’ electric market or own any of the facilities that deliver power across the state.
The big picture: Power generation plants, transmission facilities and distribution lines are owned by outside companies, meaning that local power outages are typically isolated and handled by individual companies, rather than ERCOT.
How it works: In 1999, Texas legislators passed a law deregulating the state’s retail electric market. The law was designed to “introduce competition in Texas’ electric market by allowing consumers to choose their retail electric provider,” according to ERCOT.
Previously, most Texas utility companies owned all aspects of the electric supply chain, including generation, transmission and the delivery of power to customers.
Today, approximately 85% of electric customers in Texas can choose their retail electric provider, including those across the Houston and Dallas-Fort Worth regions. Customers in Austin and San Antonio get their electricity from municipally owned utilities.
|