How are homes and workplaces connected with different energy supplies from different providers?
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I used to work for a gas and electric company in Houston. Here’s how it works, at least in a deregulated market like Texas:
The gas company actually had a local monopoly, so I can’t speak to that, but for electric: the electric company owns and maintains the transmission lines, the electric power is produced by third party companies, and the power is sold by other third party companies.
So for example: You want to buy service that is 100% renewable energy (which is an option in Texas if you choose). You decide to go with CrunchyHippy Energy. CrunchyHippy Energy does not produce any electricity, but rather works as a power reseller. CrunchyHippy Energy only buys power from BlueWater Energy (also made up) who produces electricity using wind, solar, and hydro power for say 5 cents per killowatt hour. BlueWater Energy pays centerpoint energy a transmission fee to be able to transmit power into the electric grid (which is passed on to the reseller and eventually the consumer as part of their fees). CrunchyHippy then sells that energy for 9 cents per killowatt hour to the home. You’ll notice, however, that any time you need to report an outage or have service done on your electric lines, it’s not CrunchyHippy that comes and does the work. It will always be centerpoint energy who does the work, because they own and maintain those transmission lines.
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