The key market participants in Texas Electricity Deregulation are the Generators, Transmission Distribution and Service Providers (TDSP) , Retail Electric Providers (REP), ERCOT and the Public Utility Commission (PUC). Generators convert mechanical energy into electric energy.

High voltage transmission lines carry the electricity over long distances to substations at or near the point of use. Substations convert the electricity from high voltage to lower voltage electricity which is moved through distribution lines to consumers by the TDSP. Retail Electric Providers then sell this power to consumers on a per kWh basis.

ERCOT oversees the reliability and security of the state's power grid and the Public Utility Commission regulates the delivery of electricity to ensure the safety and reliability of your service.

What does change? You choose which company sells you your electricity and bills you for that service. The actual delivery and maintenance of your electricity to your home or office is still provided by your same local wires company no matter which electricity provider you choose.