Electric utility restructuring has been occurring throughout the nation. The deregulation of the electric utility industry in Texas began in 1999 with the passage of Senate Bill 7. Since that bill was signed into law, the state has been preparing for January 1, 2002, the date that competition will begin in Texas. This report discusses several issues that have been critical to ensuring a successful implementation of electric utility restructuring in Texas. After the poor implementation of deregulation in California, attention has shifted to the deregulation effort in Texas. With other deregulation efforts throughout the nation stalled pending the outcome in Texas, a successful market will encourage deregulation throughout the nation.