On January 1, 2002, change came to Texas electric utilities, allowing some Texas consumers to select the electric supplier of their choice. The Texas Legislature passed the restructuring bill SB 7 with the hope that competition would result in lower cost and better service for consumers.

The restructuring bill required Texas’ private investor-owned electric utilities (IOUs) to enter the competitive market on January 1, 2002.

Electric Cooperatives such as TVEC and municipally owned utilities were given the option to compete or not. When Texas legislators approved electric restructuring in 1999, they recognized that member-owned electric cooperatives and city-owned systems are locally based and that they operate under a democratic business model. Therefore, they gave those cooperatives and municipalities more options.

When it comes to cooperatives, each elected cooperative board of directors will determine what path is best for their member-owners' needs.

TVEC decided to take a "wait and see" approach to customer choice. This has proven to be a wise decision, as some rates provided by retail electric providers participating in the deregulated market have risen significantly. TVEC is proud to provide lower electricity costs by not opting in to the deregulated market.