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What is ERCOT?

ERCOT runs the power grid and the wholesale electricity market for most of Texas. Here's what that means for how you buy energy.

What is ERCOT?

ERCOT — the Electric Reliability Council of Texas — is the independent system operator that manages the flow of electricity to the large majority of the state. It balances supply and demand in real time and operates the wholesale market where power is bought and sold.

Why Texas is different

Unlike most of the country, much of Texas operates its own grid that is largely separate from the two big national interconnections. Texas is also a deregulated market in most areas, which means many commercial organizations can choose their retail electricity provider rather than buying from a single regulated utility.

What that means for buyers

Choice is an advantage — but only if you use it well. Retail offers vary by term, product type, and how costs are passed through. The wholesale market is also dynamic, so when you contract can matter as much as what you sign.

  • You can compare and select among competitive retail providers.
  • Contract structure and timing materially affect your cost.
  • Delivery (the wires) stays regulated even where supply is competitive.

How Strata helps

We translate ERCOT complexity into a clear decision: we analyze your usage, compare qualified offers, and time the market against your renewal — so you contract with leverage, not on a deadline.

FAQ

Frequently asked questions

No. ERCOT operates the grid and wholesale market; your retail price comes from the supplier and contract you choose (plus regulated delivery charges).

Most, but not all. Some areas are served by municipal utilities or co-ops. We confirm what applies to each of your locations.

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Electricity Procurement

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Want this applied to your accounts?

Upload a utility bill and we'll turn ERCOT insight into a strategy for your organization.