The Texas electricity market is full of abbreviations and jargon that can be confusing.   

Our glossary covers everything you need to know about your electricity supply in the Lone Star State. Know your REPs from your PUCs, and your kilowatt-hours (kWh) from a base charge.   

Remember, Energy Savings customer service is here to help and answer questions when you’re looking for electricity for your home or business. 

Auto-Pay/Auto-Debit 

Auto-pay/auto-debit programs authorize automatic payments to be taken from a customer’s bank account or credit card. Some Retail Electricity Providers (REPs) offer this option for electric bills. Each REP has different auto-pay/auto-debit terms and conditions. Customers should request and study those terms before signing and agreeing to them. 

Average Payment Plan 

Retail electricity providers (REPs) must offer customers average payment plans. They’re an agreement between both that allows customers to pay approximately the same amount each month for their electricity, with periodic balancing to correct any under- or over-payments. 

Base Charge 

A base charge is a flat fee applied to an energy bill irrespective of electricity use. 

Billing 

Billing is a generic term covering anything related to an electricity customer’s bill or account. It can include amounts charged or how billing rules apply to the bill. Customers can raise complaints about their billing, too. Billing includes, but is not exclusive to, these areas:   

• Electricity rates 
• Electricity charges 
• Account deposits and refunds 
• State programs and fees 
• Non-receipt of bills 

City-Owned Utility 

A city-owned utility is a nonprofit utility owned and operated by the city it serves. City-owned utilities are also known as municipally owned utilities (MOUs) and have existed for over a century. MOUs own wires, meters, and poles and provide electricity to residential, commercial, and industrial customers.   

There are more than 70 MOUs in Texas, providing power to over 5.1 million Texans, about 15% of the population. They can also opt into Texas’ competitive retail electric marketplace. 

Clean Energy 

Clean energy describes power produced with few carbon emissions. Clean energy sources include wind, solar, thermal, nuclear, and hydropower. 

Commercial Customer 

There are four standard customer designations, of which commercial customer is one, with residential, small commercial, and industrial making up the rest.    

Examples of commercial customers include retail stores, schools, and restaurants. Manufacturing businesses are not commercial customers. 

Cramming 

Cramming is illegal and occurs when companies add charges to a customer’s bill without prior approval or permission. Service providers must inform clients of any service changes and their costs. Customers do not have to pay these unauthorized charges.   

If you fear you’ve been a victim of cramming or spot any unfamiliar charges on your bill:   

• Contact your electricity company immediately. 
• Do not pay unauthorized costs and ask for a refund if you have already paid them. 
• Continue paying your regular, agreed charges. 
• Ensure no unfavorable credit report is filed against you.  
  

Contact the Public Utility Commission of Texas (PUC) if you cannot resolve the issue with your electricity company. The PUC will investigate and may impose financial penalties. 

Current Reading (or Curr. Rd.) 

Current reading may appear as Curr. Rd. on your bill. Curr. Rd. is the current meter reading measured by your Transmission and Distribution Service Provider (TDSP). 

Deregulation 

Texas has a deregulated energy market covering large parts of the state. Deregulated areas have companies competing to supply several parts of the energy market. These include electricity generation, transmission, distribution, and consumption — the energy you use at home. 

Discontinuance 

Discontinuance covers complaints about service disconnections, payment disputes, notice issues, and service disconnections. 

Distributed Renewable Generation (DRG) 

Distributed renewable generation (DRG) programs allow customers with small-scale renewable power systems to sell excess power to their electric company.   

For example, someone with solar panels may generate more electricity than they can use on very sunny days. The homeowner can feed this power back into the grid. Anyone wishing to sell excess electricity must have a prior agreement to do so with their electric company. This contract must be set up by everyone in advance, in areas with or without retail electric competition. 

Electric Cooperative (Co-Op) 

An electric cooperative (co-op) is an electric utility owned by customers that distributes electricity to its members. There are more than 70 electric cooperatives in Texas, with over 3 million members in total, and co-ops can opt into the competitive retail market. 

Electric Reliability Council of Texas (ERCOT) 

Electric Reliability Council of Texas, or ERCOT, operates and maintains Texas’ electrical power grid. ERCOT also ensures that the wholesale market is competitive. They send you a mailer confirming your switch whenever you choose a new electric company. Their headquarters is in Austin, Texas. 

Electric Service Identifier (ESID) 

An electric service identifier (ESID) is a long, 17- or 22-digit number that identifies homes or business buildings’ locations in deregulated areas in Texas. Each dwelling’s number is unique. An ESID is not the same as your account number. 

Electricity Facts Label (EFL or Fact Sheet) 

Electricity facts labels (EFLs) are an industry-wide requirement for all-electric plans offered by electric companies to customers. EFLs show every plan’s full details, including the terms, pricing, fees, renewable energy mix, and the supply’s carbon dioxide emissions.   

Customers can compare all-electric plans using EFLs, making an informed decision about which electric company to choose. EFLs also list any required deposits, the contract term length, charges, and minimum usage levels.  

Electronic Billing (E-Billing) 

Electronic billing is an electronic form of bill delivery rather than a physical bill sent by postal mail delivery. E-billing is usually by email or can be via an app. Most retail electric providers (REPs) offer e-billing options. Some make auto-pay/auto-debit part of the e-billing terms and conditions.  

Fixed-Rate Plan  

A fixed-rate electric plan means your kilowatt-hour (kWh) price will not change during your contract period. These plans offer price security, knowing what you’re paying and when. 

  The amount of your fixed-rate electricity bill can change if:   

• You start using more or less electricity each month 
• Transmission and distribution fees change 
• ERCOT or other administration fees fluctuate 
• Additional fees or taxes are imposed that are outside your electric company’s control 

Generation 

Electricity generation comes in many forms in Texas. Indeed, the state produces more electricity than any other in the U.S. In 2020, wind accounted for a fifth of Texas’ electricity generation — more than coal — and the state is second only to California in its solar power capacity.   

Other electricity-generation methods include natural gas, coal, nuclear power, biomass, and hydropower. 

Indexed Rate Plan 

An indexed rate plan is an electricity contract where the price a customer pays for electricity can vary. Also called market rate plans, indexed rate plan costs are linked to a publicly available index. If the index rises, so does the kWh price customers pay. Similarly, if the index drops, so does the kWh rate.   

Prices can vary substantially from month to month. Make sure you understand how your electric company implements price changes and how they inform you, too. 

Industrial Customer 

There are four standard customer designations, of which industrial customer is one, with residential, small commercial, and commercial making up the rest. Industrial customers usually have the highest electricity demand. Examples include manufacturing plants or factories. 

Kilowatt-Hour (kWh) 

Every electricity bill received in Texas is expressed in kilowatt-hours, or kWh. These kWh measure how much electricity you have used.   

A kilowatt is a measurement of energy (1 kilowatt = 1,000 watts) that allows companies and customers to know how much electricity has been produced or consumed at any given time.   

Electrical appliances, like lightbulbs, are measured in watts. The higher the wattage, the more energy is required to illuminate the lightbulb. So, the more electricity you use, the more watts you use, and your bill, in kilowatt-hours, will be higher. 

Local Wires Company 

Local wires companies were also known as local electric utilities or transmission and distribution utilities. The responsibilities of local wires companies include meter reading, pole and wire maintenance, and electricity delivery. 

Minimum Monthly Fee 

Minimum monthly fees, or minimum usage levels, are electricity plans that need careful attention. Customers on these plans must use a certain amount of electricity for every month of the contract — the minimum usage level.   

Electric companies automatically impose a minimum monthly fee if someone does not reach that minimum usage level. This charge may or may not be listed separately on your bill.   

Not all companies charge or have these fees. Always read the electricity facts label to see if there are minimum monthly fees or minimum usage levels. Don’t sign up for a minimum usage-level contract if you don’t know your average monthly electricity use or you cannot guarantee how much electricity you’ll use.  

Municipally Owned Utility (MOU) 

A municipally owned utility is a nonprofit utility owned and operated by the municipality it serves. Municipally owned utilities (MOUs) have been in existence for over a century. MOUs own wires, meters, and poles and provide electricity to residential, commercial, and industrial customers.   

There are more than 70 MOUs in Texas, providing power to over 5.1 million Texans, about 15% of the population. They can also opt into Texas’ competitive retail electric marketplace. 

Peak Demand 

Peak demand is the period (usually 15 minutes to an hour) when demand for electricity reaches its highest point over a given amount of time, whether daily, monthly, quarterly, or annually. This could apply to an individual household, a state, a building, or anywhere electricity consumption can be measured. 

Power Grid 

A power grid has several names: electrical grid, national grid, or just a grid. Texas has its own electrical grid, and it has everything required to supply electricity to homes and businesses. Its power grid includes:   

• Power lines 
• Towers (sometimes called pylons) 
• Transformers 
• Power plants 
• Substations 
• Renewable energy sources 
• Utility companies 

Power Outage 

A power outage occurs when there’s a loss of electrical power to homes and businesses. Electrical appliances will not work during a power outage. Short outages can be inconvenient, but more prolonged power outages can bring more significant risks.   

Power outages are also known as power cuts, blackouts, power failures, power losses, and power blackouts. 

Power Surge 

A power surge occurs when an electrical current exceeds safe levels. A dramatic example is when lightning strikes a building and blows the building’s fuses, possibly damaging cables, appliances, and people.   

There are often many tiny power surges every day, lasting no more than a millionth of a second, which can also damage devices. 

Power to Choose 

Powertochoose.org is a one-stop electricity plan comparison website to help residents in deregulated parts of Texas choose an electric company.   

The Public Utility Commission of Texas (PUCT or PUC) runs the website and lists thousands of electricity plans and enables people to compare prices and conditions. 

Prepaid Electric Service 

Prepaid electric service is when the customer pays for electricity in advance, sometimes known as “pay-as-you-go.” A smart meter or other specialized device tracks usage daily. Customers need to add more credit before or when their prepaid credit expires. 

Prev. Rd. 

Prev. Rd. stands for previous reading and appears on electricity bills. It is a transmission and distribution service provider’s (TDSP) last reading from a meter before sending the latest bill. 

Provider of Last Resort 

Texas’ deregulated market means some electric companies leave. Should this happen, customers are not left without power. The provider of last resort (POLR) is a “backup” provider that keeps the lights on. Consumers can stay with the POLR or look for another electric company in the interim. 

Provision of Service 

Provision of service relates to complaints about:   

• Initiation of service 
• Timely startup 
• Refusal of service 
• Customer service 

Public Utility Commission of Texas (PUC)

The Public Utility Commission of Texas (PUC or PUCT) is a state agency that regulates Texas’ electric, water, and telecommunication utilities. The PUC offers help and support for consumer complaints. It also oversees electricity delivery and ensures customer protection legislation is applied. 

Quality of Service 

Quality of service pertains to complaints about physical issues like power outages and power surges. 

Renewable Energy 

Renewable energy is replenishable energy that won’t expire for millions of years. Examples include solar energy, wind energy, thermal, hydropower, and some bioenergies.   

Electricity facts labels show how much renewable energy reaches your home with your chosen plan. Many companies also offer renewable energy plans or green credits so that you can reduce your electricity’s carbon footprint. 

Residential Customer 

There are four standard customer designations, of which residential customer is one, with industrial, small commercial, and commercial making up the rest. Residential customers are private households — owned or rented — that use electricity for lighting, heating, gadgets, etc. 

Retail Electric Provider (REP) 

Retail electric providers (REPs) are most often called electric companies. REPs sell electricity to companies in Texas’ electricity markets and are all certified by the Public Utility Commission of Texas.   

Amigo Energy is an example of a REP, alongside Just Energy, Tara Energy, and more.   

REPs don’t generate electricity, read meters, or work on transmission or distribution wires. 

Slamming 

Slamming is an illegal practice that involves a customer’s electric services being switched to a new retail electric provider (REP) without that customer’s explicit approval. Slamming can happen when customers sign for promotions through telemarketers or suppliers change without contacting the account holder.   

Contact the Public Utility Commission (PUC) toll-free at 1-888-782-8477 if you think you have been slammed. Also, contact the company that has slammed you and ask them to switch you to your original REP.   

Be aware of slamming by:   

• Keeping an eye on your electricity bill and charges. Contact your REP if your monthly bill doesn’t arrive. 
• Knowing the name of your REP and when your current contract expires. 
• Only sign contracts and promotions once you fully understand the deal. 
• Early termination fees on your bill are a classic sign of slamming. 
• Be aware of calls verifying a change in services you didn’t request. 

Small Commercial Customer 

There are four standard customer designations, of which small commercial customer is one, with residential, commercial, and industrial making up the rest. Small commercial customers include businesses with peak electricity demands of 50 kW or less during any 12-month period. 

Terms of Service (TOS) 

The terms of service (TOS) detail the contract between a retail electric provider (REP) and a customer. The TOS carries the contract details, such as prices, fees, contract length, and termination fees. 

Time of Use 

Time-of-use plans encourage customers to use power at certain times, often by offering lower prices or free electricity. Classic offers include free energy for nights or weekends.   

There are many time-of-use plans, all with different time offers. The PUC’s Power to Choose website displays time-of-use plans’ kWh price based on the average price estimation of power used during and outside the discounted hours.  

People save most by shifting their primary electricity use to the agreed discounted times, such as putting the dishwasher and washing machine on during free nights of electricity. These plans can benefit people who have a clear idea of how much electricity they use and when.   

Some users may see their energy bills increase if they don’t use their time-of-use plan’s cheaper time slots. 

Transmission and Distribution 

Transmission and distribution relate to the safe delivery of electricity within a grid. They are regulated by the Public Utility Commission (PUC). Transmission and distribution concern the poles, wires, and infrastructure that bring power to homes and businesses, including emergency and power outage responses. 

Transmission and Distribution Service Provider (TDSPs or TDUs) 

Transmission and Distribution Service Providers (TDSPs) are the companies that undertake the grid’s transmission and distribution work. TDSPs own or operate the equipment and facilities that help with Texas’ electricity distribution and transmission.   

All TDSPs are regulated by the Public Utility Commission of Texas (PUC). Your TDSP is not the electric company to whom you pay your monthly bill — your electric company is a retail electric provider (REP).   

Customers contact their TDSPs when there are emergencies or power outages. TDSPs are also known as TDUs (transmission and distribution utilities). 

TDU Surcharge 

Electricity bills in Texas carry a TDU (or TDSP) surcharge. This amount is what the TDU or TDSP charges your retail electric provider (REP) for delivering electricity to your household.   

For example, your electricity bill will have a TDU surcharge. This surcharge is what your REP pays the transmission and distribution utility for transmitting electricity through the grid network. 

Usage 

Usage relates to how much electricity a customer uses during a billing cycle. Electric bills list usage in kilowatt-hours (kWh) and labeled “kWh used.” 

Variable Rate Plans 

Variable rate plans feature electric rates in kWh that change on any given day. A retail electric provider (REP) sets this rate.   

Variable rates can go up or down, which means you can pay more, or less, for using electricity. Variable rate plans have possible savings, but you may also receive higher bills if prices rise. Electricity prices may spike during natural disasters, cold winters, or complicated market conditions.   

Some variable rate plans have no early-termination fees. Customers can usually switch 

REPs quickly and easily — check the terms and conditions — which often means companies offer lower kWh prices than for fixed rate deals. 

Your Rights as a Customer Disclosure 

Retail electric providers (REP) must provide you with a copy of your rights to adhere to Public Utility Commission of Texas (PUC) regulations. Contact the PUC if your REP doesn’t provide this document when you sign an electricity contract. 

Texas Electricity Glossary 

This glossary covers almost all the terms, phrases, and acronyms people will encounter when looking for an electric company in Texas.   

Our customer service agents are available to talk you through any elements of the electricity market that you don’t understand. 

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