Wiktor Wise
In Texas, consumers can choose their electricity provider, but not their utility company, which is determined by location. The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to over 27 million customers, or about 90% of the state's electric load. ERCOT is a membership-based nonprofit corporation, overseen by the Public Utility Commission of Texas (PUCT). Utility companies, or Transmission and Distribution Utilities (TDUs), own and maintain the infrastructure, while Retail Electric Providers (REPs) sell electricity to consumers. TDUs must adhere to Texas PUC regulations and ensure safe and reliable service within their service areas. One such TDU is Oncor, which serves over 10 million Texans. Another company, Right of Way Service, Inc. (ROWS, Inc.), is a Texas land and right-of-way acquisition company that has worked on various electrical line projects and facilitated projects for electric service companies throughout the state.
| Characteristics | Values |
|---|---|
| Name | Right of Way Service, Inc. (ROWS, Inc.) |
| Type of company | Full-service, family-owned Texas land and right-of-way acquisition company |
| Services | Purchasing right of ways in Texas, facilitating projects for electric service companies, rebuilds, new lines, cut-ins, relocations, wind farms, substations, switching stations, power stations, communication facility projects |
| Clients | AEP, American Shoreline, Bandera Electric Coop, Duke Energy, ETT, Guadalupe Valley Electric Coop, Invenergy, Intergen, Lower Colorado River Authority, Magic Valley Electric Coop, Perdenales Electric Coop, Sharyland Utilities, South Texas Electric Coop |
| Testimonials | "They always manage to get my projects in service when I need them to be", "They know how to control the project cost and get things done", "Their knowledge, contacts and experience in this area surpasses all others" |
| Founder | Adan Valadez |
| Website | www.rowsinc.com |
| ERCOT | The Electric Reliability Council of Texas (ERCOT) is a membership-based 501(c)(4) nonprofit corporation that manages the flow of electric power to more than 27 million Texas customers |
| ERCOT members | Consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers, municipally owned electric utilities |
| TDU | Transmission and Distribution Utilities (TDUs) own and maintain the infrastructure |
| REP | Retail Electric Providers (REPs) sell electricity to consumers |
| Popular electricity providers | TXU Energy, ComparePower |
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What You'll Learn
The Electric Reliability Council of Texas (ERCOT)
Texas's electric grid is unique in that it is not connected to the rest of the national grid. The state's electricity market was deregulated in two phases: the wholesale generation market in 1995 and the rest of the sector in 1999. This allowed retailers to contract with providers across the state, creating a complex market. The 1999 deregulation also removed limits on rate increases, leading to a 64% increase in residential electricity rates between 1999 and 2007.
As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 54,100 miles of transmission lines and 1,250 generation units, including Private Use Networks. ERCOT also performs financial settlements for the competitive wholesale bulk-power market and administers retail switching for 8 million premises in competitive choice areas.
Power demand in the ERCOT region is typically highest during the summer due to air conditioning use, with the all-time record peak hour occurring on August 20, 2024, when consumer demand hit 85,931 MW. In February 2021, ERCOT declared a statewide emergency due to a 34,000 MW shortfall in generation that caused widespread blackouts. This event highlighted the need for better preparation and "winterization" of Texas's electricity infrastructure to prevent future disasters.
ERCOT has also made significant strides in renewable energy production, surpassing California in wind-power production in 2003 and becoming the top wind-producing state in the US. In December 2010, ERCOT's wind output reached a record high of 25.8% of the company's load, exceeding the state legislature's goal for renewable energy sources.
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Right of Way Service, Inc. (ROWS)
ROWS has worked on various projects, including rebuilds, new lines, cut-ins, relocations, wind farms, substations, switching stations, and power stations. They have also completed communication facility projects and were involved in the Critical Reliability Electrical Zone (CREZ) initiative in West Texas from 2009 to 2015, where they successfully acquired over 275 miles of the right of way and over 575 parcels of land.
The company's expertise in project management, feasibility studies, title searches, route selection, abstracting, permitting, negotiations, and damage claim settlements has made them an industry leader in right-of-way acquisition. Their knowledge of regulatory processes and experience with electrical line projects are key factors in their success. ROWS has worked with a range of clients across Texas, including electric companies, pipeline companies, and government agencies.
ROWS's honest and reliable approach to business has earned them a positive reputation in the industry. Testimonials from clients highlight their ability to complete projects within budget and on time, demonstrating their strong project management skills. Their extensive knowledge of the area and industry connections are also valued by their clients.
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Transmission and Distribution Utilities (TDUs)
Transmission substations, or step-up transformers, are outdoor facilities that adjust voltage levels, provide a central place for system monitoring and switching, and redistribute power. They typically operate at high and extra-high voltages, allowing for efficient long-distance electricity transmission. The transmission lines are aerial conductors that carry large amounts of electrical power at high voltages over long distances.
Distribution substations, or step-down transformers, are used to reduce voltage to levels suitable for homes and businesses. Distribution lines then carry the electricity from these substations to the building service entrance, connecting various parts of the system to meet changing power requirements and allowing for switching between different utilities.
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to over 27 million Texas customers, representing about 90% of the state's electric load. ERCOT schedules power across a grid of more than 54,100 miles of transmission lines and 1,250 generation units, including private networks.
In terms of expenses, electricity bills consist of supply rates and transmission and distribution rates. The transmission and distribution rates cover the infrastructure costs of delivering electricity from its source to the consumer. These rates are regulated, and any infrastructure projects that impact rates must be approved by relevant state departments.
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Retail Electric Providers (REPs)
In Texas, a Retail Electric Provider (REP) is a company that buys electricity at wholesale prices and sells it directly to consumers at retail prices that they control. REPs are the companies that contract with customers to switch on or off electrical services and handle the administrative processes behind getting electricity into consumers' homes. They are also responsible for collecting and paying the charges associated with power transmission.
REPs do not own or operate the facilities that generate the electricity they sell, nor are they responsible for electricity infrastructure such as poles or wires. Instead, they are the last link in the electricity "supply chain", forecasting demand and buying enough electricity from wholesale markets to meet that demand.
The wholesale electricity market can be extremely volatile, with prices fluctuating in real-time. REPs must therefore possess the skill to buy at affordable rates and provide demand procurement, buying expertise, and handle risk management.
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 27 million Texas customers, representing about 90% of the state's electric load. As a membership-based nonprofit corporation, its members include retail electric providers, among other industry participants.
Due to the intense competition between REPs, the Public Utility Commission of Texas (PUCT) does not regulate how they price or advertise their electricity rates. This means that REPs can advertise a lower rate and charge a higher rate after a contract has been signed.
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The Public Utility Commission of Texas (PUCT)
The PUCT's stated mission is to "protect customers, foster competition, and promote high-quality infrastructure". It regulates the rates and services of transmission and distribution utilities in competitive markets, investor-owned electric utilities where there is no competition, and incumbent local exchange companies that have not elected incentive regulation. The PUCT has played a significant role in overseeing the transition to competition in the local and long-distance telecommunications markets, as well as the wholesale and retail electric markets.
In 2011, the former commission chairman, Barry Smitherman, resigned to join the Texas Railroad Commission. Following the February 2021 North American winter storm, the PUCT faced legal action as plaintiffs alleged that its actions led to a spike in electricity prices. As a result, chairman DeAnn T. Walker resigned in April 2021, and Governor Greg Abbott appointed Texas Water Development Board chairman Peter Lake as the new chairman.
The PUCT is headquartered in the William B. Travis State Office Building in Austin, Texas. Some of the notable commissioners and chairmen who have served on the PUCT include Paul Hudson, Julie Caruthers Parsley, Barry T. Smitherman, Donna L. Nelson, and Kenneth W. Anderson Jr.
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Frequently asked questions
The Texas Electric Service Company right-of-way is owned by the Utility Companies (TDUs) or Transmission and Distribution Utilities. They own and maintain the infrastructure while Retail Electric Providers (REPs) sell electricity to consumers.
No, you cannot choose your utility company in Texas. It is determined by your location. However, you can choose your electricity provider in deregulated areas.
Oncor is the largest electric utility in Texas, serving over 10 million Texans.
