Last Updated on July 22, 2023 by Mary Pressler

How The Texas Electricity Market Works

Texas has a deregulated electric sector, which means that power generation companies sell their electricity in a competitive market. Homes and businesses have the freedom to choose an retail electricity provider, and there are many types of promotions and plans.

In this article, we will highlights the types of companies and organizations that participate in the Texas electricity sector. Deregulation has been possible by assigning functions to different organizations, instead of having one company with a monopoly over the entire Texas power industry.

PUCT – Public Utility Commission of Texas

The Public Utility Commission of Texas (PUCT) regulates several utility services in the state: electricity, telecommunication, water and sewers. There are some exceptions; for example, municipal electric companies are regulated locally, and natural gas is regulated by the Railroad Commission of Texas.

The main functions of the PUCT are implementing laws related to utility services, providing customer assistance, keeping utility infrastructure in good working condition, and promoting fair competition. In other words, the PUCT enforces regulations for utility companies.

The Texas PUC Logo