![]() ![]() ![]() ![]() As TDUs, the members of EUMMOT have established energy efficiency programs to meet this legislative requirement. In addition to deregulation, Senate Bill 7 established an energy efficiency goal, mandating the TDUs to provide energy efficiency programs to offset a percentage of annual growth in demand. The PUC sets the rates for transmission and distribution services, establishes reliability and safety standards, and ensures that all customers and REPs are treated the same when it comes to the delivery of electricity to homes or businesses. The TDUs are regulated by the Public Utility Commission of Texas (PUC). In addition, the TDUs read the meters and restore service when there is a power outage. The TDUs are responsible for maintaining the poles, wires, and meters that deliver and measure the electricity consumed by a home or business. Transmission & Distribution Utilities (TDUs), also referred to as Transmission & Distribution Service Providers (TDSPs) or the "wires companies," provide the acutal delivery of electricity. Transmission & Distribution Utility (TDU) REPs are not permitted under Texas law to own power plants however, they can be affiliated with a power generation company. Power generation companies sell this power at wholesale to Retail Electric Providers (REPs), who package the power with transmission and delivery service for sale to retail customers. Power generation companies own and operate power plants, including plants fueled by coal, nuclear power, natural gas, wind, water, solar power, or other renewable sources. See below for a description of how the industry currently operates in the deregulated portions of the state. The below image illustrates the difference between a regulated market (which still exists in parts of Texas) and a deregulated market. With the passage of Senate Bill 7 during the 76th Legislative Session, these monopolies were broken up into three separate companies, each providing a different aspect of electricity service: power generation, transmission and distribution, and retail sales. Prior to 1999, electric utilities operated as regulated monopolies, providing all parts of electricity service to customers within certain parts of the state. Deregulation and the Competitive Electricity Market ![]()
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