Understanding the Language of Electric Plans

Understanding the language of electric plans

Advanced Metering Charge (AMS)

A Transmission and Distribution Utility (TDU) surcharge assessed on your electric bill as a way to recover costs for Advanced Metering Systems, sometimes referred to as smart meters. This amount is in addition to a standard metering charge, but it may be bundled in a single line with all other TDU charges on your bill. If itemized separately, this surcharge may appear as "AMS," "Advanced Meter," or combined with the “Energy Efficiency Cost Recovery Factor” (EEC).

Average Payment Plan/Average Billing

An agreement between a Retail Electric Provider (REP) and a customer that allows customers to pay approximately the same amount each month for electricity, with the balance reconciled periodically to account for over or under payments. All REPs are required by the Public Utility Commission of Texas (PUCT) to offer average payment plans.

Base Charge

Also referred as the Minimum Usage Charge, Customer Charge, or Monthly Service Fee, the "Base Charge" is a fee assessed by your Retail Electric Provider (REP)when your monthly electricity usage falls short of a minimum kWh requirement. Per-billing-cycle usage requirements are stated in Electricity Facts Labels (EFLs) for all electric plans.
Note: When labeled as the Monthly Service Fee, Customer Charge, or Base Charge, this fee may be charged regardless of monthly usage. Also, do NOT confuse this with the Energy Charge on an EFL, which can often be called the "Base Energy Charge."

Bill Payment Assistance Program

A low-income assistance program that helps pay the electricity bills of individuals in need. It is often supported by voluntary customer contributions.

Competitive Retailer

A Retail Electric Provider (REP) that is certified by the Public Utility Commission (PUCT) to sell electricity to end-use customers. They typically compete for your business by offering competitive prices, renewable energy options, customer service benefits or other incentives.
(May also be called: Electric Company)

Contract End Date

The date when a contract period or term is complete.

Customer Charge

Also referred as the Minimum Usage Charge, Base Charge, or Monthly Service Fee, the "Customer Charge" is a fee assessed by your Retail Electric Provider (REP)when your monthly electricity usage falls short of a minimum kWh requirement. Per-billing-cycle usage requirements are stated in Electricity Facts Labels (EFLs) for all electric plans.
Note: When labeled as the Monthly Service Fee, Customer Charge, or Base Charge, this fee may be charged regardless of monthly usage.

Early Termination Fee

A fee charged to a customer by a Retail Electric Provider (REP) if the contracted rate plan is terminated by the customer prior to its ending date.

Electric Company

A Retail Electric Provider (REP) that is certified by the Public Utility Commission) to sell electricity to end-use customers. They typically compete for your business by offering competitive prices, renewable energy options, customer service benefits or other incentives.
(May also be called: Competitive Retailer)

Electric Reliability Council of Texas (ERCOT)

The non-profit corporation that administers and maintains the reliability of Texas’ electric power grid. When you select a new Retail Electric Provider (REP), ERCOT will send you a postcard to confirm your switch.

Fixed-Rate Plan

A retail electric plan with a predetermined contract length of greater than one-month in length and a price that remains the same throughout its term (exceptions are listed in the plan’s Terms of Service).

Generation

Term referring to the production of electricity. In Texas, electricity is produced by a number of methods including natural gas, coal, nuclear power, wind, water and solar sources.

Green Energy

Electricity that is made from renewable, "environmentally friendly" fuel resources, such as wind, water, biomass or solar. Information about a Retail Electric Provider's (REP) generation sources can be found on any electric plans’ Electricity Facts Label.
(May also be called: Renewable Energy)

Green Premium

The "green premium" is defined as the average monthly cost for 100 percent renewable plans of a given contract length (for example, one year), less the average monthly cost for plans with less than 100 percent renewable content and based on the assumed usage profile for a 12,000 per-kilowatt-hour/year user. The green premium may be thought of as an answer to the question: "On average, how much more per month would the average monthly payment be for a 100 percent renewable version of a plan with the same contract length?"
Example: 100% renewable plan at $104.07/month
less Non-100% renewable plan at $100.00/month
Green Premium of $ 4.07/month

Indexed Products

Indexed Products have a price that changes according to a pre-defined pricing formula based on publicly available indices or information. Indexed products may have a fixed contract term or it can be month-to-month (variable).

Insufficient Funds Fee

A banking term where demand for payment (a check) cannot be honored because there is not money available in the account on which the check was drawn.

Kilowatt (kW)

Kilowatt is the standard unit for measuring electricity demand and is equal to 1,000 watts.

Kilowatt-Hour (kWh)

A unit of energy equivalent to one kilowatt (kW) of power expended for one hour of time and is equal to 1,000 watt-hours. The amount of electricity consumers use each billing period is expressed in kilowatt-hours (kWh).

Late Payment Penalty

A charge assessed for late payment of an electric bill in accordance with Public Utility Commission rules.

Local Wires Company

Formerly called an electric utility, it is the company that delivers electricity to homes and businesses across its network of wires, poles and other power distribution equipment. While it ensures the reliable delivery of power from generation plants to end-use customers, it neither generates nor sells electricity.
(May also be called: Transmission and Distribution Utility/Service Provider, TDU/TDSP)

Minimum Usage Charge

Also referred as the Monthly Service Fee, Customer Charge, or even Base Charge, the "Minimum Usage Charge" is a fee assessed by your Retail Electric Provider (REP)when your monthly electricity usage falls short of a minimum kWh requirement. Per-billing-cycle usage requirements are stated in Electricity Facts Labels for all electric plans.
Note: When labeled as the Monthly Service Fee, Customer Charge, or Base Charge, this fee may be charged regardless of monthly usage.

Pass-Through Charges

Charges billed by the Transmission and Distribution Utility (TDU) that are “passed through” to the bill you receive from your Residential Electric Provider. Pass-through charges can be recurring (like monthly standard delivery charges) and non-recurring (for services like connecting, disconnecting or re-connecting electric service). Pass-through charges may be itemized separately.
(See also: TDU Charges)

Prepaid Electric Service

Electric service for which the customer pays in advance. It can be based on smart meter data or estimated future electricity usage.

Provider of Last Resort (POLR)

Established by the Public Utilities Commission, the Provider of Last Resort or "POLR" is a designated list of back-up electric service providers in each service area that allows competition. POLR service serves as a safety net for customers whose chosen provider is unable to continue service. For more information, check with us.

Public Utility Commission Gross Receipts Assessment (PUCA)

A fee assessed to recover the statutory costs for administering the Public Utility Regulatory Act (PUCA). The PUCA is currently set at .1667% of a customer’s total bill for energy service for a given billing cycle (including all TDU/TDSP fees), before sales tax.

Public Utility Commission (PUC)

The state agency responsible for regulating and overseeing electric and local telecommunication services. Through this governance, the commission implements legislation and assists in resolving consumer complaints, among other activities.

Renewable Energy

Electricity that is made from renewable, "environmentally friendly" fuel resources such as wind, water, bio-mass or solar. Information about a Retail Electric Provider's generation sources can be found on any electric plans’ Electricity Facts Label.
(May also be called: Green Energy)

Retail Electric Provider (REP)

An electric company that is certified by the Public Utility Commission to sell electricity to end-use customers. They typically compete for your business by offering competitive prices, renewable energy options, customer service benefits, rewards or other incentives.
(May also be called: Competitive Retail Electric Provider, Electric Company)

Smart Meters

Devices that record electricity consumption and send and receive information to and from the meter location and the Transportation and Distribution Utility (TDU).

TDU/TDSP Delivery Charges

Charges assessed by a Transmission and Distribution Utility (TDU) for the delivery of electricity to a customer over poles and wires and through other TDU facilities. Though these charges are assessed to the Retail Electric Provider (REP) and not the consumer directly, REPs may itemize these charges on consumers’ electric bills.
These charges can also be called "Transmission and Distribution Surcharges."

TDU/TDSP Discretionary Charges

Charges assessed by a Transmission and Distribution Utility (TDU) for special services rendered such as initial set‐up of service, disconnection of service, meter re‐reads and meter tests. Though these charges are assessed to the Retail Electric Provider (REP) and not the consumer directly, REPs may itemize these charges on consumers’ electric bills.

The agreement between a customer and the Retail Electric Provider for an electric plan. It provides details about recurring and potential fees, billing/payment options, length of service and company information.

Transmission and Distribution Surcharges

One or more Transmission and Distribution Utility (TDU) surcharge(s) on a customer’s bill in any combination. Surcharges include charges billed as tariff riders by the TDU (i.e. Advanced Metering System Surcharge or Energy Efficiency Cost Recovery Factor). Though these charges are assessed to the Retail Electric Provider (REP) and not the consumer directly, REPs may itemize these charges on consumers’ electric bills.
Collectively, these charges are also referred to as TDU Delivery Charges.

Transmission and Distribution Utility (TDU)

Formerly called an electric utility, it is the company that delivers electricity across its network of wires, poles and other power distribution equipment. While it ensures the reliable delivery of power from generation plants to end-use consumers, it neither generates nor sells electricity.
(May also be called: Local Wires Company)

Usage

The amount of electricity used during a specified billing period. This usage is typically presented in kilowatt-hours (kWh) and listed as kWh used.

Variable Rate Product

A retail electric product in which the price may vary according to a method determined by the Retail Electric Provider (REP) on an Electricity Facts Label (EFL). For residential customers, a variable price product can only be a month‐to‐month contract.

Your Rights As a Customer Disclosure (YRAC)

A document that informs you of your rights as mandated by the Public Utility Commission. Your Retail Electric Provider must provide you with this disclosure.