Everything is bigger in Texas. And in terms of electricity and energy, it’s different, too.
The primary difference between Texas’ energy market and others around the country is that Texas has its own energy grid, the Electric Reliability Council of Texas (ERCOT). For households in much of the state, the electricity market is also deregulated, meaning that consumers have a choice of which supplier they get their power from, rather than from a single, centralized entity.
Those factors combined make the Texas energy market perhaps the most unique among US states — at least among the 48 contiguous states. And how Texas ended up with ERCOT and its deregulated market (or energy choice for consumers, as it’s sometimes referred to), is interesting in its own right.
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The history of electricity in Texas, and why Texas has its own power grid
Trying to get a grasp of the history of the energy market in Texas is difficult — like trying to chase down sagebrush being blown across the prairie.
Electricity first came to the state in the 1880s. But in the subsequent decades perhaps the most important elements that led to the creation of Texas’ energy market as it stands today is the development of its energy grid and, much later, deregulation.
We’ll help you find the best electricity rates in your area
Advertiser disclosure
This advertisement widget will direct you to www.chooseenergy.com. You will not be charged for engaging with this advertisement. While we strive to provide a wide range of offers, this advertising widget may not include information about every product or service that may be available to you. We make reasonable efforts to ensure that information from this advertisement widget is up to date. It is possible that the offer terms from this advertising widget and the advertised offers may be subject to additional terms and conditions of the advertiser which will be presented to you prior to making a purchase. All information is presented without any warranty or guarantee to you.