The Texas electricity market is deregulated, meaning that there is competition in the generation and distribution of electricity. Power generators in the Texas Interconnection, managed by the Electric Reliability Council of Texas, participate in an energy-only electricity market and are compensated only for the electricity they produce. The wholesale generation market was deregulated in 1995 and the distribution market in 1999, with Texas Senate Bill 7. This replaced the prior system in which power was generated and consumed locally by the same utility with one in which retail providers contracted with generators across the state. As a result, 85% of Texas power consumers (those served by a company not owned by a municipality or a utility cooperative) could choose their electricity service from a variety of retail electric providers (REPs), including the incumbent utility. The incumbent utility in the area still owns and maintains the local power lines (and is the company to call in the event of a power outage) and was not subject to deregulation. Customers served by cooperatives or municipal utilities could choose an alternate REP only if the utility has opted in to deregulation; only the Nueces Electric Cooperative has chosen to opt in. Between taking effect in 2002 and 2006, approximately 85% of commercial and industrial consumers switched power providers at least once. As of 2008, approximately 40% of residential consumers in deregulated areas switched from the former incumbent provider to a competitive REP. REPs providing service in the state include AmeriPower, TriEagle Energy, Acacia Energy, Ambit Energy, Breeze Energy, Bulb Energy, Clearview Energy, Green Mountain Energy, Conservice Energy, Iluminar Energy, Now Power, Snap Energy, Entrust Energy, Bounce Energy, Champion Energy, Shnye Energy, Cirro Energy, Direct Energy, Dynowatt, First Texas Energy Corporation, Frontier Utilities, Gexa Energy, Glacial Energy, Just Energy, Kinetic Energy, Mega Energy, APG&E, Adjacent Energy, Spark Energy, StarTex Power, Stream Energy, Tech Electricity, Texas Power, TXU Energy, XOOM Energy and 4Change Energy. Background Texas has electricity consumption of $24 billion a year, the highest among the U.S. states. Its annual consumption is comparable to that of Great Britain and Spain. Texas produces the most wind electricity in the U.S., but also has the highest carbon dioxide emissions of any state. As of 2021, Texas residential electricity rates ranked 21st in the United States and average monthly residential electric bills in Texas were the 5th highest in the nation. System The law designated the