Energy deregulation in Texas went into effect on January 1, 2002. This move allowed Texans to select their electricity supplier, just like with another service. You can now pick your energy provider based on the costs and services provided. It encourages competition among electric providers, which leads to cheap electricity and better service. The option doesn't change how businesses receive electricity. It is still delivered by the same regulated transmission and distribution system operators, who now are transporters. It is just that your electricity can be provided by any licensed REP.