Such a setup makes possible competitiveness in the free market to help lower electricity rates in Texas. At the production stage power generators have an incentive to maintain their price levels and expenses low seeing that retail electric companies were given an incentive to provide electricity at a lower price to homeowners. This pressure goes down to the electricity producer..
Galveston is a deregulated
industry. Which means that most end-users in the state are free to go with the electricity provider that offers the lowest electricity rates.
In Texas all customers will be cared for equally by the TDSPs no matter the REP they use. The transmission prices charged by the TDSPs continue to be regulated by the PUC in Texas.