How it Works -Texas Electricity

In Texas, most residents have the power to chose who they receive their power from and how much they pay.

There are many factors that work together to bring you power in Texas. To better understand all of these components, they have been broken down in the diagram below. Each component plays a key role in ensuring that you are not in the dark.

How Power is Distributed

  1. The Power Plant will produces or harness the power of coal, wind, sun & water. Also referred to as “The Producers”.
  2. The Distributors own and manage, the wires, towers and meters that carry the power to your home or business. They are also referred to as the “Utility company” or the “Transmission and Distribution Provider”.
  3. The High-voltage transmission lines carry the power to substations, which converts the electricity to a lower voltage. These Conversion stations are owned by the Transmission and Distribution Provider.
  4. The lowered voltage then goes to the distribution lines that send the power directly to your home’s meter. Your Meter is owned and serviced by the local Transmission and Distribution Provider.
  5. You receive a bill from the R.E.P. (Retail Electric Provider) with a breakdown of your usage times the kWh rate you pay, your taxes and other fees (depending on your plan and provider).
  6. The Retail Electric Provider is the one who submits the order for turn on, or turn off to the Utility Company (Transmission and Distribution Provider). They are also the company that bills you for the usage and purchases power on your behalf.
  7. The Retail Electric Provider then pays the Power Plant (Producers) for generating power for you, the Transmission and Distribution Provider for maintaining your lines and reading your meter and this is what comprises your bill.

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