Deregulation gives you the power to choose your electricity and natural gas provider.

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Energy deregulation refers to the disbandment of vertically integrated electric utilities brought about by employing free-market standards. The whole idea is to provide the public with lower energy rates and more options with regard to services. The Texas Legislature adopted Senate Bill 7 in 1999, which allowed Texas residents in most regions of the state to choose which electric company, or Retail Electric Provider they want to do business with.

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What did the Electricity market look like before deregulation and retail electricity suppliers existed?

For many years, electricity was produced and delivered by the same company. This company is called a Utility. Here are some examples of those utility companies: ConEd in NY, ComEd in IL, ONCOR and Centerpoint in TX, JCP&L in NJ. These utilities historically provided both these services: Supply and Delivery

Supply - Think of power plants generating power. This power, or the electrons, is the electricity supply.

Delivery - Look outside at the poles and wires delivering your power and the people reading your meters. This is a delivery system. The utility still oversees delivery exclusively.

Delivery - Look outside at the poles and wires delivering your power and the people reading your meters. This is a delivery system. The utility still oversees delivery exclusively.

Before deregulation, there was no choice as to whom we could buy our power from, hence power supply and delivery was regulated.

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What is electricity deregulation?

About 14 years ago, the laws began to change in certain states. These changes in law allowed business owners to choose who they bought power from. Today, almost half of our United States is deregulated for the supply portion of either natural gas or electricity. In two words, deregulation means: ELECTRIC CHOICE.

Remember: Delivery is still regulated. When deregulation laws were passed, that did allow for customers in deregulated territories to purchase their power (supply) from anyone they liked (REPs), however the delivery of that power is still managed, maintained, and billed to you by your utility company.

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How did Retail Electricity Providers (REPs) come into existence?

When deregulation laws passed, utilities were forced to sell their generation (power plants). These plants were bought by retail companies that planned to sell the supply (electrons) from those power plants to customers in that territory.

These new supply companies have many names; in the south they are called REPs (Retail Electricity Providers), in the north they are called ESCOs, and in the Midwest they are simply called suppliers. Some examples of suppliers: Direct Energy, Constellation New Energy, Just Energy, and Liberty Power. There are hundreds of these REPs in every deregulated state. How will customers know which one to choose?

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What is Energy Consulting?

With so many REPs to choose from (none of them presenting pricing, contract language or fees the same way,) it became very confusing for business owners to shop rates for their supply, compare apples to apples offers, and read contract language. A professional community emerged to simplify the process for business owners. We call this community the ABC community: Aggregators, Brokers, and Consultants. The ABC community helps business owners by finding them the best deal for their electric and natural gas supply. In the more mature markets like Texas, over 60% of commercial businesses recognize the value of utilizing an electricity professional to shop for their power.

Are you responsible for the power contracts for your business?

Fill out our commercial form, call us at 855-KWH-SHOP, email us at, request forms in the mail (address below), or fax your request to 888.496.2174 today.