2002 was a disastrous year for the reputation of energy retailing. Following the collapse of Enron in late 2001, the entire concept of energy trading and deregulation was viewed with deep public suspicion. Gexa’s founding team worked overtime to distinguish themselves from the fraud of Enron, emphasizing their transparent billing and risk management practices.

A new REP with no physical assets is essentially a financial intermediary. To survive, Gexa needed massive credit lines to post collateral with ERCOT (the grid operator). The company survived its first year by securing backing from private equity and sophisticated energy traders who understood the arbitrage opportunity between volatile wholesale prices and stable retail contracts.

Into this newly created void—this gap between the physical grid and the customer—stepped the entrepreneurs. Gexa Energy was one of the first pure-play REPs to seize this opportunity. It was founded by a group of energy veterans who recognized that electricity, once a dull monthly necessity, could be rebranded, repackaged, and marketed like long-distance telephone service or internet access.

Gexa Energy is one of the most recognizable retail electricity providers (REP) in the Texas market. Founded in and officially entering the deregulated market in 2002 , the company has grown from a local Houston startup into a primary subsidiary of one of the world's largest renewable energy companies. The Founding of Gexa Energy (2001–2002)

From a small Houston startup at the dawn of deregulation to a renewable energy leader, Gexa's history is a reflection of the evolving Texas energy landscape.