Enacted in January 2002, Senate Bill 7 empowers Texas residential and commercial customers to choose from a wide range of Retail Electric Providers (REPs). The legislation also enables customers to select their own products and terms based on the individual needs of the business.
After its enactment, many customers in Texas utility territories remained with the retail Affiliated REP, which was separated from the former local electric utility. They provided electricity services to customers under the pricing model known as Price to Beat (PTB). The PTB is a regulated rate that is periodically adjusted to reflect fuel costs. The PTB option expired for all customers in January 2007.