Tools
All the words you might come across on your path to a cheaper electricity bill.
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Energy shopping should be simple. That's why we've put all the complicated jargon you might run into along the way to the cheapest plan in one place for easy reference.
Active power - electricity that is actually being used in real time, to power lights, appliances, and other devices that are turned on
Aggregator - a company or broker that acts on behalf of a group of customers to negotiate, buy, and manage energy plans
ASMR Meter - Advanced Meter System Remote, a meter that can be turned on remotely typically with no additional fees
AMSM Meter - Advanced Meter System Manual, requires a technician to power on and additional fees may apply
Average price per kWh - the average amount you pay for each kilowatt-hour (kWh) of electricity you use
Base charge - a flat monthly fee, included in some energy plans, charged regardless of how much electricity you use
Bill copy - a copy of your previous electricity bill. Required for some new enrollments without late fees or balance forward
Bill credit - a credit applied to your electricity bill when you meet certain energy usage requirements, typically calculated into the expected rate
Billing cycle - period of time included in an electricity bill, usually about 30 days
Biomass - energy generated by burning organic matter, such as wood, food, and waste. Landfill gas is the most widely used resource for biomass energy generation.
British thermal unit (Btu) - a universal unit used to measure heat energy. One Btu is the amount of energy needed to warm one pound of water by 1˚F.
Buyback programs - programs that pay or credit customers for extra electricity they produce from solar panels and send back to the power grid
Carbon calculator - a tool that estimates how much carbon pollution a person, home, business, or activity creates
Carbon emissions - carbon gases released into the air, usually from burning fuels like coal, oil, and natural gas to produce electricity
Carbon footprint - the total amount of carbon pollution created by a person, product, or business
Carbon dioxide - a gas released naturally and by activities like burning coal, oil, and natural gas. Too much carbon dioxide in the atmosphere contributes to global warming and air pollution.
Competitive supplier - an energy company that competes with other energy providers to sell electricity or natural gas to customers in deregulated areas
Connection fee - a fee charged to start electricity service or connect to the power grid
Contract length - the amount of time you agree to stay on an electricity plan, typically between 3 months and 3 years for residential contracts
Credit freeze - a security freeze on customer's credit file that prevents a supplier from running a credit check until lifted
Default rate - the electricity rate that you’re automatically enrolled in if you do not shop for a new plan or supplier, these rates are typically set by your state’s utility commission
Demand - the amount of electricity required to power all consumers needs at a specific time
Deposit - money an electricity may require upfront before starting your service, typically refundable but subject to your electricity company’s policies and your contract
Disconnection fee - a fee charged to shut off electricity service to a location
Disconnection risk - when an electricity account is overdue, risking service disconnection by the utility
Distributed energy - electricity produced close to where it is used instead of at a large, distant power plant
Distribution (or, delivery charge) - a charge for delivering electricity from the power grid to your home or business location
Dropbox - secure document platform used for contracts, MVO forms, and bill copies when e-sign is not available
Drop notice - formal notification that a customer's account is being dropped from supplier service, typically due to a non-payment, unauthorized switch, or closure, requiring immediate action or else risk of losing power
Early termination fee (ETF) - a fee you have to pay if you cancel a fixed-rate electricity contract before it ends If you are moving to a new location you are not required to pay out any early termination fees.
Electric choice - the ability to choose your electricity company in areas with energy competition
Electric cooperative - a member-owned electric company that provides electricity to a local area, ex. Austin Energy
Electric Reliability Council of Texas (ERCOT) - the organization that manages most of Texas’s power grid and helps balance electricity supply and demand
Electricity Facts Label (EFL) - PUCT mandated disclosure document required for all Texas electricity plans that details all important information about an electricity plan, including prices, fees, contract terms, and where the electricity comes from
EnergyBot - an online marketplace that helps residents and businesses compare electricity plans and save on energy based on their real energy usage data
Energy audit - a review of how a home or building uses energy to find ways to reduce consumption and save money
Energy charge - the amount you pay for the electricity you use, based on the number of kilowatt-hours (kWh) used
Energy deregulation - a system that allows customers to choose between competing energy companies instead of having one default provider, designed to encourage better rates, service, and benefits
Energy efficiency - using less energy to do the same job, for example, using an LED bulb instead of an older incandescent lightbulb
Enrollment rejection - notification that an enrollment attempt was rejected, typically due to credit failure, late payments, or other circumstances
Environmental disclosure label - a document that explains where an electricity plan’s energy comes from and its environmental impact, including what percentage of your energy plan in renewable
ESID (Electric Service Identifier) - a unique number used to identify an electricity service meter location in Texas
Ethanol - a fuel made from plants, usually corn or sugarcane, mixed with gasoline
Fixed rate - an electricity rate that stays the same during your contract period, even if wholesale energy market prices fluctuate
Free nights and weekends - an electricity plan structure that charges little to nothing for electricity used during certain nighttime or weekend hours, typically causing the “peak” hours to cost much more
Generation mix - the different energy sources used to produce electricity, such as natural gas, wind, solar, coal, and nuclear power
Geothermal energy - energy that uses heat from inside the Earth to produce electricity or heat buildings
Green energy - energy that comes from sources with a lower environmental impact, such as wind and solar power
Global warming - the long-term rise in Earth’s average temperature, mainly caused by greenhouse gases
Grid - the large network of interconnected power plants, wires, and equipment that transports electricity to homes and businesses
HVAC - short for heating, ventilation, and air conditioning. An HVAC system is responsible for heating, cooling, and moving air around buildings
Investor-owned utility - a utility company owned by investors that provides electricity or natural gas to customers
Kilowatt (kW) - a unit that measures the electrical power being used or produced at a specific moment, 1 kilowatt is equivalent to 1000 watts
Kilowatt hour (kWh) - a unit that measures how much electricity you use over time, electricity bills typically charge based on the number of kWh you use in a month
Load forecast - a prediction of how much electricity customers will need at a specific time
Meter - a device that measures how much electricity or natural gas a home or business uses
Month to month plans - electricity plans with no long-term contract that continue one month at a time and have variable rates associated with them
Minimum usage fee - a fee added to your electricity bill if you don’t use the minimum amount of electricity required by your plan in a certain billing cycle
Meter add - adding a new service location (meter/ESID) to an existing account Minimum usage fee
Municipally owned utility - also known as city-owned, an electric utility that is owned and operated by a city or local government
Natural gas - a fuel found underground that is used for heating, cooking, and generating electricity
Net metering - a billing system that gives customers credit for extra electricity their solar panels or other energy systems send back to the grid
Nuclear energy - energy produced by splitting atoms in a nuclear power plant to create heat and generate electricity
Off-peak - times when electricity demand is lower, such as overnight. Electricity may cost less during these hours on some plans, like “Free Nights and Weekends”
On-peak - times when electricity demand is high, electricity may cost more during these hours on some plans
Permit issue - some locations (especially for business) require a government permit before power can be connected or switched. The utility will reject the enrollment until the permit is obtained.
Personal guarantee - alternative to a cash deposit for credit failures where customer personally guarantees payment obligation. Not accepted by all suppliers.
Power to Choose - Texas’s official electricity shopping website, where customers in deregulated areas can compare retail electricity plans
Pre-Approved plan - credit-friendly plan offered when a customer fails standard credit with different rate structures to offset risk
Prepaid plan - an electricity plan where you pay for electricity before you use it instead of receiving a bill afterward.
Pro Tip: If you use more than the prepaid amount of electricity, you will receive a “top up” bill at the end of the month to make sure you have paid off all charges.
Price to Compare (PTC) - a utility’s electricity supply price that customers can use as a starting point for comparison when reviewing offers from other retail electricity providers. Each state has a different PTC and some states, like Texas, don’t have a PTC at all
Provider Of Last Resort (POLR) - a backup electricity provider that may serve a Texas customer if their current provider can no longer provide service
Public Utilities Commission of Texas (PUCT) - the Texas government agency that oversees the state’s electricity, water, and telecommunications utilities
Real rate - the actual, average price you pay for electricity after including the charges and fees, as well as any bill credits or special pricing, that apply to your usage
Real-time pricing - an electricity plan where the price can change throughout the day based on current wholesale electricity market prices
Renewable energy - energy from sources that naturally replenish themselves, such as sunlight, wind, and moving water
Renewable Energy Certificate (REC) - a certificate that represents the environmental benefits of one megawatt-hour of electricity produced from a renewable energy source
Retail Electric Provider (REP) - a company that sells electricity plans and bills customers in a deregulated electricity market
Right of Rescission - federally mandated right to cancel a new electricity contract without penalty within 3 federal business days of signing. Key rules include: (1) window begins the day after signing, (2) Saturdays are considered business days, (3) federal holidays do not count
Small commercial - small commercial customers (typically under 50 kW demand or below a usage threshold set by the supplier) have PUCT protections including the 3-Day Right of Rescission and EFL requirements
Smart meter - a digital meter that automatically measures and sends information about your electricity usage
Solar lease - an agreement where you pay to use solar panels owned by another company instead of buying the panels yourself
Solar power - energy from sunlight that can be turned into electricity using solar panels
Solar Power Purchase Agreement (SPPA) - an agreement where a company installs and owns solar panels on your property and you pay for the electricity they produce
Supply charge - the part of an electricity bill that pays for the electricity itself, rather than the cost of delivering it
Switch hold - utility (TDSP) flag preventing any REP from switching an account, commonly due to: (1) customers have a payment plan with a REP for past-due amount, or (2) meter tampering detected by TDU. Must be resolved before new enrollments can proceed.
Terms of Service (ToS) - a document that explains the rules, fees, and other details of your electricity service agreement
Tidal power - renewable energy that uses the movement of ocean tides to generate electricity
Time of Use (TOU) rate - an electricity rate where the price changes depending on the time of day or day of the week
TDU charges - regulated fees in Texas that pay for delivering electricity and maintaining local poles, wires, and other equipment
Transformer - a piece of electrical equipment that changes electricity to a higher or lower voltage so it can be safely moved and used
Transfer of Service (TOS) - existing customer moves to a new address and wants to continue service at a new location
Transmission and Distribution Service Provider (TDSP) - a company that maintains the power lines and delivers electricity to homes and businesses in parts of Texas, also commonly called a TDU
Usage - the amount of electricity you use during a certain period of time, measured in kilowatt-hours (kWh)
Usage data - historical electricity consumption data for a specific meter pulled from the utility provider
Utility - a company or organization that provides services such as electricity or natural gas and maintains the equipment used to deliver them
Variable rate - an electricity rate that changes from month to month based on your provider’s terms or market conditions
Volt - a unit used to measure the electrical force that pushes electricity through a wire Wind power - renewable energy that uses wind turbines to turn the wind’s movement into electricity
YRAC disclosure - short for “Your Rights as a Customer,” a document that explains an electricity customer’s rights and protections in Texas
