Market Structure

The Electric Reliability Council of Texas (ERCOT) operates Texas' electricity grid and manages most of the state's deregulated energy market. As a result of deregulation, each legacy utility in ERCOT geography un-bundled into three units: a power generation company; a retail electric provider; and a transmission and distribution company. This allowed competitive retail electric providers to enter the state.

ERCOT is the central controller of the majority of the energy market's activities, including power scheduling, power operations, and retail market data transactions between retailers and transmission and distribution (wires) companies.

Under competition, each customer except those in service territories of municipalities and cooperatives that have not opted for competition, have the right to select an electricity provider like Liberty Power.

At the beginning of 2007, the last vestiges of regulation (the price to beat default service) expired and businesses in the major metropolitan areas open to competition enjoy the benefits of truly open markets.

When you choose Liberty Power as your competitive retailer, we become the seller of your electricity supply and you will receive your electricity bill from us. Your bill clearly details and breaks out charges for electricity supply separately from transmission and distribution so you can easily see exactly what you are paying for each component. However, your electricity is still delivered by your local wires company (e.g. Centerpoint, Oncor, etc.), which remains responsible for ensuring reliable transmission to your business.