Power Generation Companies

oLike most business activities, the process of generating electricity and delivering it to your home and business requires numerous steps.  In the past, one company handled all aspects of electricity service, including generating the power,  transmitting the power to your home and billing you for the power you use. Tday, much of Texas is in the deregulated electricity market where separate entities control each step of the process.

 Power generation companies, Retail Electric Providers, and Transmission and Distribution Utility companies each manage a different step in the process and rely on each other to provide power to the people of Texas.Power generation companies, such as Luminant, own and operate power plants that generate electricity. These plants can be fueled by coal, nuclear power, natural gas, wind, water, solar and other renewable energy sources. These companies sell wholesale power to the Retail Electric Providers.

Retail Electric Providers

Retail Electric Providers, like TXU Energy, package the power into electricity service plans for sale to consumers. These providers handle customer accounts, including billing for Energy Charges used by the consumer as well as infrastructure maintenance charges from the Transmission and Distribution Utility.  Because the Texas electricity market is extremely competitive (in areas of electricity deregulation), there are many providers and offers to choose from. Learn about how to choose an electricity provider.

Transmission and Distribution Utilities (TDU) are responsible for the infrastructure used to deliver electricity to the consumer. This infrastructure includes the installation and maintenance of transmitters, power lines, poles and electric meters, including smart meters. When you have a power outage, it’s the TDU in your area that comes out to repair your service. There are five Transmission and Distribution Utilities in Texas.

If you live in Texas, check to see if your area is deregulated and whether you have the power to choose who supplies your electricity. Make sure to research beyond the basic kWh electricity rate when choosing an electricity plan.