Why does Texas have so many energy companies?

When speaking to my new apartment complex in Arlington Texas regarding a move-in date, the agent mentioned that I would need a confirmation letter that I had turned on the power. She stated that there were about 40 different power companies I could choose from, and that my best bet was to google for them.

This threw me for a bit of a loop. Here in Michigan, we have one energy company. You use Consumers Energy and you like it! Why is it different in Michigan? Why does Texas have so many?
And as a non-factual addition, does anyone have any suggestions as to who to use, or where I can find a good comparison?

Texas simply deregulated their electrical utilities a while back. Competition seems to usually work out in favor for the consumer, so many would consider it a very good thing that you can pick your electricity company in Texas. The site I linked to may help you in coming to a decision, but I haven’t lived there in years (and when I did live there I wasn’t choosing my own electricity company), so good luck choosing! You can search by ZIP code and get a handy listing of all the possible power providers’ prices, terms, and renewable energy content.

My google-fu fails me. Anyone got a link going to the specific legislation? For some reason, I find this very fascinating at 2AM with this much coffee in me.

Some of the legislation appears to be in the Sources section here.

I have Green Mountain and they’ve worked out fine.

Green Mountain