Energy deregulation is a fact of life for most Texans and it’s been that way since 2002. While no state is completely deregulated, Texas comes pretty close with 85 percent of the state getting to pick their energy provider.

Texas is a prime market for energy brokers but knowing how to navigate it can be a daunting task. It’s important for brokers to understand how Texas operates and who are the major players that impact the market.

Key Players in the Texas Electricity Market

With so much of the state deregulated, Texas was forced to adapt and change its existing utility structure. Essentially, they separated the energy business into three different parts: retail electric providers, utility companies, and power generation.

Let’s look at five key players in the Texas energy market and how they are responsible for maintaining and regulating energy:

Electricity Reliability Council of Texas (ERCOT)

ERCOT is responsible for managing electricity and supplying 24 million Texans with reliable electricity. They control 85 percent of the deregulated electricity market and service several major areas including Houston, Fort Worth, Dallas, and Corpus Christi. ERCOT is overseen by the Public Utility Commission of Texas.

Public Utility Commission of Texas (PUCT)

The PUCT is a state agency that enforced regulation on multiple utilities, including electricity. They act as an advocacy organization and ensure that electricity is delivered safely and reliably to the customer. And they also help resolve customer complaints and ensure that customers are treated fairly.

Retail Electricity Provider (REP)

A REP is an electric company that has been approved by the Texas Public Utility Commission to sell electricity to consumers. These companies are responsible for selling electricity and taking care of the service and billing for its customers. There are a number of REPs in Texas, each one operating independently of each other and competing for business.

Texas utilities

Utility companies are responsible for distributing electricity to the consumer in that service area. These companies own the lines, wires, and meters in that area. The five major utilities in Texas are:

  1. Oncor Electric Delivery

  2. CenterPoint Energy

  3. Texas-New Mexico Power

  4. AEP Central

  5. AEP North

Power generation companies

Power generation companies own and operate the facilities that create the electricity. This includes coal, nuclear, and natural gas power plants. The power generation companies sell electricity to the REPs who then work with the utility to ensure that electricity reaches the customers in that service area.


Many brokers find that it can be hard to gain access to top suppliers in the energy market. This presents obvious challenges when it comes to growing their energy broker business. This is also why many brokers choose to join an energy broker network like BOX.

When you partner with Broker Online Exchange, you’ll have access to over 75 suppliers across all deregulated markets. And BOX gives you the back office support you need to streamline your business. This means you’ll have access to premier pricing and some of the top names in the industry.

Contact us to find out more about the unique opportunity BOX offers brokers.