Energy Options in Texas
- Texans have a choice when it comes to electricity. They can opt to continue getting electricity through their present provider, or they can switch to a different Retail Electricity Provider (REP), provided your local area allows for competition. Some utilities may not offer different choices. Regardless of the REP you eventually choose, certain things will not change. Your Transmission and Distribution Service Provider (TDSP) will continue to deliver the actual electricity and provide metering and power restoration services during outages. The Public Utility Commission of Texas will continue to oversee TDSPs.
- Wind, along with solar and other renewable energy sources, is treated with tax incentives that may be useful to businesses that wish to receive tax deductions or exemptions for using, manufacturing or installing alternative power. Additionally, wind and solar are eligible for Renewable Energy Credits, which utilities and retailers can leverage by generating renewable power or buying RECs in the open market. Power generation companies that use wind can sell their power to REPs wholesale, which the latter will then make available to end-users. Two Texas companies that offer wind power are TXU Energy and Direct Energy.
- An ample solar energy supply makes Texas a prime candidate for solar power exploitation. West Texas, in particular, has high levels of direct solar radiation, which is being deployed in the Department of Energy's program to generate 1,000 megawatts of new concentrating solar power (CSP) systems in the southwest U.S. Solar power involves the conversion of solar radiation to electricity through the use of photovoltaic cells that absorb the sun's energy. Another way of harnessing solar power is to heat water via mirrors into steam that then propels a generator.
- Despite being a non-renewable source of energy, natural gas supplies are abundant, with new deposits being discovered and exploited in Texas, such as the Eagle Ford Shale. Much of Texas' natural gas is consumed in-state. The "Texas Tribune" says that one-third of Texas homes are heated by natural gas and 38 percent of the Texas electricity grid is supplied by natural gas, which is almost 25 percent higher than the national average. However, consumption levels are dwindling due to competition from wind power. Moreover, natural gas is plagued by politics and environmental concerns that drilling activity contributes to water and air pollution.
Electricity
Wind
Solar
Natural Gas
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