# Why does Texas have so many energy companies?

**URL:** <https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089>\
**Category:** Factual Questions\
**Created:** [August 24, 2008, 5:45am UTC](https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089 "2008-08-24T05:45:43Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Captain\_C](https://avatars.discourse-cdn.com/v4/letter/c/e5b9ba/32.png) [@Captain\_C](https://boards.straightdope.com/u/Captain_C)\
**Post date:** [August 24, 2008, 5:45am UTC](https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089/1 "2008-08-24T05:45:43Z")

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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?

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**Author:** ![BrandonR](https://avatars.discourse-cdn.com/v4/letter/b/779978/32.png) [@BrandonR](https://boards.straightdope.com/u/BrandonR)\
**Post date:** [August 24, 2008, 5:49am UTC](https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089/2 "2008-08-24T05:49:00Z")

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Texas simply [deregulated their electrical utilities](http://www.powertochoose.org/) 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.

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**Author:** ![Captain\_C](https://avatars.discourse-cdn.com/v4/letter/c/e5b9ba/32.png) [@Captain\_C](https://boards.straightdope.com/u/Captain_C)\
**Post date:** [August 24, 2008, 5:51am UTC](https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089/3 "2008-08-24T05:51:29Z")

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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.

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**Author:** ![BrandonR](https://avatars.discourse-cdn.com/v4/letter/b/779978/32.png) [@BrandonR](https://boards.straightdope.com/u/BrandonR)\
**Post date:** [August 24, 2008, 5:55am UTC](https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089/4 "2008-08-24T05:55:39Z")

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Some of the legislation appears to be in the Sources section [here](http://en.wikipedia.org/wiki/Deregulation_of_the_Texas_electricity_market#Sources).

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**Author:** ![dalej42](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@dalej42](https://boards.straightdope.com/u/dalej42)\
**Post date:** [August 24, 2008, 6:39pm UTC](https://boards.straightdope.com/t/why-does-texas-have-so-many-energy-companies/461089/6 "2008-08-24T18:39:33Z")

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

[Green Mountain](http://www.greenmountainenergy.com/)