Distribution is taking power off the transmission lines and sending it through neighborhoods to the end of the line, the consumer. Moving backward, distribution has been generally regulated by the State Public Utility Commission, cities and counties, or rural electric cooperatives. The construction and operation of distribution lines is a natural monopoly, meaning it is most efficient for only one company to be in the market. Under the Texas law, your local distribution utility will remain the same and have the same obligations and responsibilities to you. Transmission is increasingly regional and a working national grid is key to getting enough power to the places that need it.
Interstate transmission is regulated by the federal government.
H.R. 2944 would create incentives for the expansion of capacity, bringing much-needed investment to this vital sector, and would create a new organization to enhance interstate reliability. The federal bill also gives discretion on generation to the states. In Texas, the recently passed state legislation will offer consumers gradually- increasing choices of generated power. This competition will be similar to that in telephone long distance, where you choose the long distance provider that serves you over the local phone company s wires. The federal bill in Congress seeks to increase the number of competitors in interstate markets while ensuring consumer protection and privacy.