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Before deregulation, one company provided all aspects of your electric service – power generation, delivery to your home, sales, billing and customer support. After deregulation, these components are separated. Electricity is now generated in competing power plants all across Texas.

All these plants connect to a network called "The Grid". The Grid is managed by the Energy Reliability Council of Texas (a.k.a. ERCOT). ERCOT oversees all electricity transmission from the power plants to the population centers.

Once electricity reaches a city, its delivery through the wires to your residence or business is handled by a single operator – which is TXU Electric Delivery, Centerpoint, AEP Central, AEP North or Texas New Mexico Power depending on where you live. These regulated transmission and delivery providers care for all power lines and responds to any and all outages.

Retail Electric Providers (REPs) like Ambit are tasked with the marketing and billing of the energy to the consumer market. This is how deregulation guarantees stable electricity delivery at lower rates with a much higher level of customer service. Rather than the large monopolies providing your customer service, it will be provided by Ambit, a company whose entire focus is to improve the consumer experience.

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