ERCOT (Electric Reliability Council of Texas) is the independent system operator that manages the Texas electric grid. ERCOT coordinates the flow of electricity to approximately 27 million Texas customers, representing about 90% of the state's electric load. ERCOT operates the wholesale electricity market where power generators sell electricity, but does not sell electricity directly to consumers.
Definition verified January 2026 from ERCOT.com and PUCT
ERCOT serves approximately 27 million customers across Texas, representing about 90% of the state's electric load and 75% of the state's land area.
The ERCOT grid is one of three main power grids in the United States and operates independently from the Eastern and Western interconnections.
ERCOT is regulated by the Public Utility Commission of Texas (PUCT) and the Texas Legislature.
ERCOT is headquartered in Austin, Texas with grid control centers that monitor and manage electricity flow 24/7.
ERCOT performs several critical functions in the Texas electricity market:
ERCOT stands for Electric Reliability Council of Texas. It is the organization that manages the Texas electric grid, which operates independently from the rest of the United States.
No, ERCOT does not sell electricity to consumers. ERCOT manages the grid infrastructure and wholesale electricity market. Consumers buy electricity from Retail Electric Providers (REPs) like TXU Energy, Reliant, or Gexa Energy.
Texas chose to keep its grid separate from federal regulation by not crossing state lines. This allows Texas to manage its own electricity market under state oversight (PUCT) rather than federal regulation (FERC). The Texas grid was established in the 1930s-1940s and has remained independent ever since.
ERCOT covers most of Texas, including major cities like Houston, Dallas, Fort Worth, Austin, San Antonio, and El Paso. Some areas outside ERCOT include parts of East Texas (served by SWEPCO), the Panhandle (Xcel Energy), and small areas near Beaumont and Texarkana.
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