Electric competition, also called restructuring, refers to the process of opening the Texas electric market to competition. Prior to restructuring all aspects of the electric market in Texas were controlled by integrated monopolies, meaning that a single company owned the full range of electricity services (generation, wires, and retail) in a given area. With restructuring, generation and retail of electricity are now fully competitive in many areas of Texas, while the transmission and distribution wires services are all still non-competitive and provided by a single company in a given area.
Competition has brought many benefits to Texans. A drive for generation efficiency created investment opportunities in new Texas generating capacity in the past decade, including renewable energy, and Texas now leads the nation in installed wind power generation. Additionally, competition has incented retail electricity providers to continually develop new products and offerings that enable Texans to take greater control of their electricity usage and costs. These innovations range from Time of Use plans, which provide discounts for off-peak usage, to devices that allow customers to see their electricity usage in near real time. Competition has created one of the most dynamic and innovative electric markets in the world right here in Texas and put the focus of the market where it belongs – on the needs of the customer.
The purpose of this page is to provide overview information on how the competitive market works in Texas as well as key reports and studies demonstrating the value the competitive market has brought to Texans.