Industry INSIGHT

What is ERCOT?
ERCOT stands for Electric Reliability Council of Texas.  This is the agency you count on to ensure a free flow of reliable electricity in most parts of Texas.  This council also acts as a large cash register or clearinghouse for electric transactions.

What is electric deregulation?
Electric deregulation has changed state rules and policies to create a retail electricity marketplace where Retail Electric Providers (REP) compete to supply your electric needs.  This change in state law broke up traditional integrated utilities that used to provide you all services.

What is a TDSP?
Transmission and Distribution Service Provider (TDSP) are the companies that maintain the electric wires and poles in ERCOT.  They make sure electricity can get to you.  Think of these companies as electricity delivery people.  Additionally, they are the ones that read your meter and keep track of your energy usage.  In an event of an outage, your area TDSP is who you need to call.  TDSPs are regulated by the Public Utility Commission of Texas (PUCT). 

What is a REP?
Retail Electric Providers (REP) are companies that are competing to serve your electric supply needs.  These are the companies that are billing you monthly for electric service.

I hear the electric market in Texas is changing again, how will it affect me?
The Texas wholesale market is scheduled to change from zonal pricing to nodal pricing.  This transformation is often referred to as “Nodal” or “Nodal Transition.”  The market was scheduled to change to Nodal on January 1, 2009; however, this was delayed to an estimated start date of December 2010 because the market players were not ready to make the change.
We are watching this situation for you.  Near term we do not anticipate you will see any effect.