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All-in Rate
The effective rate after including energy charges, base charges, bill credits, TDU delivery charges, and other required recurring charges. This is usually closer to what customers actually pay than the advertised energy charge alone.
Average Price per kWh
The total estimated monthly cost divided by the number of kilowatt-hours used. On Texas EFLs, this is usually shown at 500, 1,000, and 2,000 kWh usage levels so customers can compare plans.
Base Charge
A fixed recurring charge that may be assessed by the REP and/or as part of delivery charges depending on how the bill/EFL is structured.
A credit applied to the bill when certain conditions are met, such as using more than a specified number of kWh. Bill-credit plans can look cheap at one usage level but expensive above or below that level.
Billing Cycle
The period covered by a bill; cycle length varies by provider and meter-read schedule.
Bundled Rate
A price that combines multiple cost components into one rate, often including energy and delivery-related charges. Customers should still check the EFL to see exactly what is included.
Contract Expiration Date
The date a fixed-term plan ends. After this date, the customer may be moved to a renewal product or variable-rate product if they do not choose another plan.
Contract Term
The length of the electricity plan or agreement, such as 3, 6, 12, 24, or 36 months.
Cooperative / Co-op
A member-owned electric utility. In Texas, most co-op territories are outside retail choice unless the co-op has opted in.
Demand Charge
A charge based on the highest level of power demand during a billing period, usually measured in kW. More common for commercial customers than residential customers.
Demand Response
A program where customers reduce or shift electricity usage during high-demand periods, sometimes in exchange for incentives or lower costs.
An area where customers can shop for electricity from competing REPs. Not all Texas customers live in deregulated areas.
Early Termination Fee
A fee that may apply if a customer ends a fixed-term plan early; Texas consumer guidance highlights the 14-day pre-expiration switching window as a key exception.
Electric Reliability Council of Texas / ERCOT
The grid operator for most of Texas. ERCOT manages grid reliability and wholesale electricity markets but does not sell retail electricity plans to households.
Electric Service Identifier / ESI ID
A unique electric-service identifier used in ERCOT retail transactions; avoid equating it strictly with the physical meter, because it functions as the service-point identifier used for move-ins, switches, and related market transactions.
A standardized disclosure document for a Texas electricity plan. It shows pricing, contract terms, fees, renewable content, and average prices at specific usage levels. The EFL is one of the most important documents to review before enrolling.
Electricity Usage
The amount of electricity consumed, measured in kWh.
Energy Charge
The REP’s charge for the electricity supply itself, usually shown as cents per kWh. This is not always the same as the average price because it may exclude base charges, bill credits, or TDU charges.
Enrollment
The process of signing up for a new electricity plan with a REP.
Estimated Usage
The amount of electricity a customer expects to use, usually based on past bills. This is important because many Texas plans vary significantly by usage level.
A plan where the energy rate is fixed for the contract term. Delivery charges and certain pass-through charges may still change if the regulated utility charges change.
A type of time-of-use plan where electricity used during specific nighttime hours is marketed as free or discounted. Customers should check whether daytime rates are higher to make up for the free-night period.
A type of time-of-use plan where electricity used during specified weekend hours is marketed as free or discounted. Customers should compare the weekday rate and total average cost before enrolling.
A plan marketed as supporting renewable electricity, often through renewable energy credits. Customers should check the EFL for the renewable content percentage.
The interconnected system of power plants, transmission lines, substations, distribution lines, and meters that deliver electricity.
Indexed Plan
A plan where the price changes based on a formula or index, such as wholesale prices or another published benchmark. Indexed plans can be risky if prices spike.
Interval Usage Data
Detailed electricity usage data recorded in short time intervals, such as 15-minute intervals. This can help customers understand when they use the most power.
Kilowatt / kW
A measure of power, or how fast electricity is being used. One kilowatt equals 1,000 watts.
A measure of energy usage over time. Using 1 kilowatt for 1 hour equals 1 kWh. Electricity plans and bills usually price usage in cents per kWh.
Load
The amount of electricity customers are using at a given time.
Load Zone
A geographic pricing area in ERCOT’s wholesale market. Wholesale prices can vary by load zone.
Minimum Usage Fee
A fee charged if a customer uses less than a certain number of kWh in a billing cycle. These plans can be costly for low-usage customers.
Month-to-Month Plan or Variable-Rate Plan
A plan without a long fixed contract term. The price can usually change each month.
Municipally Owned Utility / MOU / Muni
A city-owned electric utility. Most municipal-utility customers in Texas are outside retail choice unless the utility has opted in.
Off-Peak Hours
Lower-demand hours when the electricity rate may be cheaper. These can include overnight hours, weekends, or other periods listed in the plan documents.
Outage
A loss of electric service. In Texas retail choice areas, customers usually report outages to the TDU, not the REP.
Pass-Through Charge
A charge passed through to the customer from another entity, often the TDU or a regulatory authority.
Peak Demand
The highest level of electricity demand during a period. High peak demand can affect grid conditions and, for some customers, charges.
Peak Hours
The hours when electricity demand is usually highest and rates may be more expensive. In Texas, peak periods often occur during hot weekday afternoons and early evenings in the summer, but the exact hours depend on the plan.
Plan Documents
The set of documents that explain an electricity offer, usually including the EFL, Terms of Service, and Your Rights as a Customer disclosure.
Plan Name
The name of the product that the REP is selling you to get electricity.
The official PUCT electricity shopping website where certified providers can post offers for Texas customers.
A plan where the customer pays in advance and the balance is reduced as electricity is used. These plans may have different billing and disconnection rules than traditional postpaid plans.
Provider of Last Resort / POLR
A backup provider designated to serve customers if their REP exits the market or can no longer serve them.
Public Utility Commission of Texas / PUCT / PUC
The state agency that regulates Texas electric utilities, certifies REPs, oversees consumer protection rules, and manages the official Power to Choose shopping site.
Real-Time Market
ERCOT’s market where electricity is balanced and priced in real time. Retail customers usually see its effects indirectly through REP pricing and market costs.
Renewable Content
The percentage of a plan’s electricity supply represented as renewable. This is disclosed on the EFL.
Renewable Energy Credit / REC
A certificate representing the environmental attributes of renewable electricity generation. RECs are often used to support green-energy claims.
Retail Electric Provider / REP
A PUCT-certified company that sells electricity plans in Texas competitive retail areas and typically handles enrollment, billing, pricing, and customer service, but not poles and wires.
Rollover Product
A plan a customer may be placed on after the original contract expires if they do not choose a new plan. It may have different pricing.
Slamming
Switching a customer’s electric service without authorization. Power to Choose identifies this as illegal.
Smart Meter
Digital/advanced meter that records usage data, often in intervals, and supports remote communication/data access; avoid implying a single mandatory communications architecture in all contexts.
An electricity plan for customers with rooftop solar panels where the retail electric provider gives credit for excess electricity sent back to the grid. The value of the credit depends on the provider’s plan terms.
Changing from one REP or electricity plan to another.
Switch Hold
A restriction that prevents a customer from switching providers, often related to unpaid balances under certain conditions.
TDU or Distribution Fees or Charges
Regulated charges from the local delivery utility for transmitting and distributing electricity. These charges apply regardless of which REP the customer chooses.
TDSP
Transmission and Distribution Service Provider, also called a Transmission and Distribution Utility. This is the regulated utility that delivers electricity, maintains wires and meters, and restores outages.
Terms of Service / TOS
The contract document that explains the customer’s obligations, provider obligations, fees, payment rules, cancellation rules, and other terms.
A plan where electricity prices or discounts vary by time period, such as nights, weekends, or peak hours.
Transmission and Distribution Utility / TDU
The company responsible for the physical delivery of electricity. Common Texas TDUs include Oncor, CenterPoint, AEP Texas, Texas-New Mexico Power, and Lubbock Power & Light in applicable areas.
A plan that gives a bill credit when usage falls within or above a certain range. These plans can be attractive if the customer’s usage consistently matches the credit threshold.
Wholesale Electricity Market
The market where generators sell electricity and REPs or other market entities buy electricity before it is sold to end-use customers.
Your Rights as a Customer / YRAC
A required customer disclosure explaining important consumer protections, complaint rights, billing rules, disconnection rules, and other rights.
