Texas
The Texas retail electric market structure allows for customers physically connected to transmission and distribution poles and wires operated by investor owned utilities (Oncor, Centerpoint, AEP and TNMP) that are also in areas of Texas open to retail competition (see maps below) to shop electricity suppliers and make a choice based on their specific needs.
Texas Transmission Lines Texas Retail Choice Map
Reports published in October, 2010 show that the Texas retail market has produced 38 residential suppliers and 60 non residential suppliers with over 250 residential products being offered. In contrast to most other deregulated U.S. markets, the number of plans and options available to Texas consumers has lead to a continually rising switch rate (customers who have switched away from the incumbant supplier). Switch rates as of October, 2010 are estimated to be at 68.1% of eligible residential customers and and nearly 80% of eligible commercial or industrial customers.
Zonal to Nodal
Texas saw the most significant change to the Texas energy market since deregulation took effect when the Zonal to Nodal transition was rolled out on December 1, 2010. This new method of managing congestion across the electricity grid was designed to improve stability and reduce costs to market participants (customers, providers, generators and LDUs).
Benefits of Nodal:
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Improve Transparency and Price Signaling to drive efficient utilization, development and investment of generation, transmission/distribution and load as a resource
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Increase options for scheduling entities to more efficiently manage congestion to drive lower overall congestion costs
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Directly assign congestion management costs to sources (region, generator, or consumer) of the congestion
Potential new financial products:
- Ability of wholesale, and potentially retail, customers to participate in day ahead and real time market
- Ability for retailers to more effectively hedge versus relying solely on physical market
