Axon Power

Prior to 2002, the state of Texas was regulated by the Public Utility Commission of Texas (PUCT), which resulted in a monopoly on the electricity market.

This meant that each city in Texas had a single provider responsible for generation, transmission, billing, and customer service for all electricity services. In an effort to reduce government control on electricity rates and eliminate monopolies in the energy market, the Texas Legislature passed Senate Bill 7 in 1999, which enabled the deregulation of the electricity market.

Under this legislation, multiple Retail Electricity Providers (REPs) could compete against one another, leading to potential decreases in electricity prices for consumers. The deregulation process was phased in over several years, and as of 2002, 85% of Texas electricity consumers have the ability to choose from a variety of REPs for their electricity service.

However, some cities such as San Antonio and Austin remain regulated. The incumbent utility still maintains and owns the local power lines, but is not subject to deregulation.

Since the implementation of deregulation, approximately 40% of residential electricity consumers in deregulated cities have switched their service from the former incumbent provider to a competitive REP, likely due to more competitive rates and promotions. With over 60 energy providers and hundreds of plans available, choosing the right plan can be a daunting task.

However, by utilizing services such as SlashPlan, consumers can easily compare plans and make an informed purchasing decision in a matter of seconds, taking into account all hidden fees that may be present.