Deregulation in TX broke up the electricity market place into various elements. The crucial players are the ones who produce the electricity, those who distribute and transmit the electric power, and then finally the firms that end-users interact with directly. The companies that interact directly with end users are retail electricity providers (REPs). They are the ones which are responsible for buying energy wholesale and reselling it to you.

Not every area of Texas are deregulated. Cooperatives and municipal utilities may decide whether or not their customers will have a choice of providers. Also, customers of Entergy Gulf States, Southwestern Public Service Company, and AEP SWEPCO are unable to pick their own providers.

TDSPs transmit the power. They are in control of the maintenance of the power lines and reading the meters and providing the amount of power that is used for the REPs. When there’s a power outage they will be in control of reestablishing service.