The terms listed below are provided for customer information purposes and have been restated in part from the Texas Electric Choice Resource Center (see powertochoose.org) of the Public Utility Commission of Texas.

AGGREGATOR

An entity registered with the Public Utility Commission that brings together a group of customers to buy electricity in bulk.

AUTO-PAY/AUTO-DEBIT

A retail electric provider (REP) may offer customers an option which allows automatic payment of electric bills from a customer’s bank account or credit card.

AVERAGE PAYMENT PLAN

An agreement worked out between a Retail Electric Provider (REP) and a customer that allows you to pay approximately the same amount for your electric service each month, with the balance to be trued-up periodically to account for over or under payments.  All Retail Electric Providers are required by the Public Utility Commission of Texas to offer average payment plans.

BASE CHARGE

Flat fee applied each month regardless of the amount of kilowatt(kWh) used.

COMPETITIVE RETAIL ELECTRIC PROVIDER

A Retail Electric Provider (REP) that is certified by the Public Utility Commission and competes for your business by offering lower prices, renewable energy options, added customer service benefits or other incentives.

CRAMMING

Adding charges to a bill without a customer’s approval. This practice is illegal and penalties are enforced by the Public Utility Commission of Texas.

DEREGULATION

Removal or relaxation of regulations or controls governing a business or service operation like utilities.

ELECTRIC RELIABILITY COUNCIL OF TEXAS (ERCOT)

The corporation that administers and maintains the reliability of the state’s electrical power grid. When you choose a new Retail Electric Provider, this group will send you a postcard confirming your switch from one REP to another.

ELECTRIC SERVICE IDENTIFIED (ESID)

In the state of Texas, an ESID is a number used in the deregulated market to identify a unique point of electric service delivery to a premise (your home or business).

ELECTRICITY FACTS LABEL

An information sheet required by the PUC that provides customers with standardized information on a Retail Electric Provider’s prices, contracts, sources of power generation and emissions. It allows customers to make an “apples-to-apples” comparison of Retail Electric Provider offers.

FUEL FACTOR

An Affiliate Retail Electric Provider is allowed to recover its costs for the fuel used to general electricity, such as coal, natural gas, wind, water, nuclear, etc., through the fuel factor. This cost is set by the PUC of Texas and charged on each customer’s bill, based on kilowatt-hour (kWh) usage. An AREP is prohibited from making a profit on fuel costs.

KILOWATT-HOUR (kWh)

A unit of energy equivalent to one kilowatt (kW) of power expended for one hour of time.  The amount of electricity you use each billing period is expressed on your bill in terms of kilowatt-hours.

LOCAL WIRES COMPANY

Formerly called a local electric utility or a Transmission and Distribution Utility, this company is responsible for delivering electricity to your area, reading your meter, and maintaining the poles and wires.

MUNICIPALLY OWNED UTILITY

A non-profit utility that is owned and operated by the municipality it serves. In Texas, municipally owned utilities may opt into the competitive retail electric marketplace.

PROVIDER OF LAST RESORT (POLR)

The Provider of Last Resort serves as the “back-up” provider when a REP leaves the market for any reason. If this happens, customers may switch back to the AREP or choose another competitive REP offering electric service in their area.

PUBLIC UTILITY COMMISSION OF TEXAS (PUCT)

The state agency that is responsible for the regulation and oversight of electric and local telecommunication services in Texas. Under Electric Choice, the PUC regulates the delivery of electricity and enforces customer protections.

RETAIL ELECTRIC PROVIDER (REP)

A company that sells electricity to customers (residential, commercial, industrial). All Retail Electric Providers must be certified to do business by the PUC of Texas.

RURAL ELECTRIC COOPERATIVE (CO-OP)

A customer-owned electric utility that distributes electricity to members and that receives lower-cost financing through the federal government. In Texas, co-ops can choose to opt into the competitive retail market.

SLAMMING

Switching electric service without a customer’s approval. This practice is illegal and penalties are enforced by the PUC.

TERMS OF SERVICE

A contract between a Retail Electric Provider and a customer that outlines fees, length of service and other important information.

TRANSMISSION AND DISTRIBUTION

The actual delivery of electricity over poles and wires to your home or business. These services are provided to you by your local wires company (utility), which is responsible for maintaining the poles and wires, and responding to emergencies and power outages as always. The PUC still regulates transmission and distribution to ensure the safety and reliability of your electric service.

USAGE

This is the amount of electricity you used during the billing period listed in kilowatt-hours (kWh). This will be listed on your electric bill as kWh used.

YOUR RIGHTS AS A CUSTOMER DISCLOSURE

A document that informs you of your rights as mandated by the PUC. Retail Electric Providers must provide you with this disclosure.