The Structure of Electrical strength Generation and dispensing in Texas
Energy deregulation in Texas has been set in place for more than 10 years already and has given the people of this state in addition as others the strength to select their electric company or retail provider. Although the Texas consumer attained certain rare benefits with the deregulation of Texas electric companies particularly on retail dispensing, some people are nevertheless confused about how the time of action of energy deregulation truly works particularly on the roles of electric companies and other players in Texas’ energy market.
To better understand how energy deregulation truly works, the consumer should have a firm understanding of what roles each player in the energy market has. In its most basic sense, energy deregulation applies only to the retail providers, with the manufacturing and transmission part remaining intact and unaffected. Each of the major elements in the market: generation, transmission, and retail – each of which is a definite electric company in itself – plays a major role in ensuring that the Texas consumer receives electrical energy in an efficient and reliable manner.
A Historical Perspective
During the old days of energy grid monopolies and before energy deregulation was ever put in place, a single electric company provided all the elements of the utility from generation, to transmission and dispensing and finally to retail. When energy deregulation was institutionalized, it revolutionized the energy market in states like Texas and California where the system was implemented and produced better competition among existing and emerging electric companies.
Energy deregulation also paved the way for replaceable and considerably cheap electricity supplies to go into the energy market, resulting in more choices for consumers particularly the option to choose environmental friendly supplies of electrical energy.
The Current Structure in Texas
The following describes the currently deregulated structure of electrical strength generation and dispensing in Texas and among Texas electric companies:
* strength Generation
These electric companies are responsible for the generation of electrical energy by various method including the use of fossil fuels, coal, biomass, hydroelectric, natural gas, nuclear, solar, and wind energy. strength generation is not affected by energy deregulation as these strength plants produce and sold to the dispensing and retail electric providers. These Texas electric companies, particularly the leading wind energy generators in the country, provide a important portion of energy capacity not only for Texas but for other parts of the United States in addition.
* Transmission and dispensing
Texas electric companies responsible for transmission and dispensing are called Transmission / dispensing Service Providers or TDSP. These companies remained the same after energy deregulation was implemented as they continue to have control and maintenance of electrical transmission infrastructures. TDSPs continue to be responsible whenever electrical lines are down, and will provide the repair and maintenance needed should this eventuality take place. Electricity they own can also be sold to the retail providers aside from charging them monthly maintenance service fees.
* Retail dispensing
Texas electric companies that were directly affected by energy deregulation are the Retail Electricity Providers or REP’s. These are the entities that sell electrical service to consumers, whose accounts can be observed by the monthly electrical bills sent to them by the REPs. These companies turns a particular service on or off and is responsible for directly communicating with end consumers. Energy deregulation spawned the emergence of various Retail Electricity Providers which compete for consumer attention by discounts, rate plans, incentives, replaceable energy options and quality of customer service.