Can customers choose their electricity supplier?
Some electric utility customers have the option to choose an alternate electricity supplier in states where the electric utility industry has been restructured. This consumer option is often called retail choice or customer choice. The alternate supplier is the company that generates or markets electricity, often referred to as a retail electricity marketer. The alternate supplier may be an affiliate of the distribution utility. Some suppliers offer electricity generated from specific energy sources, such as wind and other renewable energy sources. Regardless of the electricity supplier, the distribution utility delivers the contracted electricity to a customer's meter and charges for that service.
In general, retail choice is available only for utility customers served by investor-owned utilities (IOUs), although a few electric cooperatives, municipal utilities, and government-operated utilities offer retail choice. Some states have implemented community choice aggregator programs that utility customers can opt in or opt out of. Alternatively, in some states such as Texas, all customers of electric utilities connected to the electric grid managed by the Electric Reliability Council of Texas (ERCOT) are required to choose an electricity provider.
Electric utility customers can contact their distribution utility or the utility regulatory commission in their state to see if and to what extent retail choice is an option and if a list of alternate electricity suppliers is available.
Other FAQs about
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