148 plain-English definitions of the terms you’ll meet on your bill, your Electricity Facts Label, and the plans you compare — written for Texas’s deregulated market, not the textbook.
The units and concepts behind every electric bill.
A residence that uses electricity as the sole energy source for every major end use — space heating, cooling, water heating, and cooking — with no natural gas or propane appliances. Because electricity carries loads that gas-supplied homes split across two fuel sources, all-electric homes show higher average monthly kWh consumption and are more sensitive to electricity rate changes.
An ampere, or amp, measures how much electric current is flowing through a wire. It's the volume of electricity moving, where voltage is the pressure behind it. Your home's breaker panel is rated in amps, often 100 or 200.
Each breaker in your panel trips at a set amperage to keep a circuit from overheating. Volts times amps gives you watts, the actual power being used.
The average Texas home uses roughly 1,000 kilowatt-hours a month, though summer cooling can push it well past 2,000. This number matters because electricity plans advertise their rate at 500, 1,000, and 2,000 kWh, and the price can change a lot depending on which usage level you actually hit.
A plan that looks cheap at 1,000 kWh can cost much more at 500 kWh because of hidden minimum-usage fees or bill credits. Check your past 12 months of bills to find your real average before you compare.
Related: Electricity Usage , Kilowatt-Hour , Electricity Facts Label
Baseload is the steady, around-the-clock level of electricity demand that never goes away, even at 3 a.m. when most of Texas is asleep. Power plants that run constantly, like nuclear and large natural gas units, cover this baseline, while other sources ramp up to meet the daytime peaks.
Picture a chart of daily electricity use: baseload is the flat floor everything sits on top of, and peak demand is the tall spike in the afternoon.
Related: Peak Demand , Load , Megawatt
The set of physical components that separate a home's conditioned interior from the outdoors, including walls, roof, windows, doors, and foundation slab or crawl space. A tighter, well-insulated envelope reduces the temperature difference the HVAC system must overcome, directly cutting the cooling and heating electricity a home requires.
Older homes with minimal attic insulation and single-pane windows can have envelope losses severe enough to double electricity use compared to a same-size newer home — making envelope quality as important as square footage when estimating expected bills.
Your electricity usage is the total amount of energy your home consumed during the billing period, measured in kilowatt-hours. It's the single biggest factor in what you pay, and it's the number you plug in when comparing plans on a site like Power to Choose.
Your smart meter records usage and sends it to your TDU, who passes it to your retail provider for billing. Heating and cooling drive most of the swing from month to month in Texas.
Related: Kilowatt-Hour , Average Monthly Usage , Load , Smart Meter
A systematic inspection of a home to identify where energy is being wasted and which improvements would reduce consumption. Auditors typically examine insulation, air sealing, appliances, HVAC equipment, and windows, and may use tools such as a blower door test or thermal camera.
In Texas, some utilities and assistance programs offer subsidized or free audits; a professional audit typically costs $200–$400 when paid out of pocket.
Acronym for Heating, Ventilation, and Air Conditioning — the equipment systems that control a building's indoor temperature, humidity, and air quality. In Texas, the air conditioning component dominates residential electricity use, typically accounting for 60–70 percent of a home's total consumption during peak summer months.
A kilowatt is 1,000 watts. It measures how fast you're using electricity at a given moment, not how much you use over time. Think of it like speed: kilowatts are the speedometer, kilowatt-hours are the miles.
A central air conditioner might pull 3 to 5 kilowatts while it's running. Run 5 kW for two hours and you've used 10 kilowatt-hours.
Related: Kilowatt-Hour , Watt , Load , Peak Demand
A kilowatt-hour is the unit your electricity is measured and priced in. It's how much energy you use by running 1,000 watts for one hour. Every charge on your Texas electric bill traces back to how many kilowatt-hours you used that month.
Ten 100-watt bulbs left on for an hour burn one kilowatt-hour. A typical Texas home uses around 1,000 kWh a month, and your energy rate is quoted in cents per kWh.
Related: Kilowatt , Watt , Average Monthly Usage , Electricity Usage
Load is the amount of electricity a home, building, or the whole grid is drawing at a given moment, measured in kilowatts or megawatts. The more devices running at once, the higher the load. It's the demand side of the equation that ERCOT has to keep matched with supply, second by second.
Your home's load spikes when the AC, oven, and dryer all run together. Across Texas, total load climbs every summer afternoon as millions of air conditioners kick on at the same time.
Related: Peak Demand , Kilowatt , Megawatt , Baseload
The pattern of a household's or facility's electricity consumption over time, typically shown as usage plotted hour by hour or day by day. Load shape reveals when consumption is highest and lowest, which determines how well different rate plan structures — such as time-of-use or flat-rate plans — will fit a given customer.
A household that concentrates most of its usage on weekend mornings has a very different load shape from one that runs appliances in the late afternoon, and the two households may pay very different amounts under the same time-of-use plan.
A megawatt is one million watts, or 1,000 kilowatts. It's the unit used to measure big power, like a power plant's output or how much electricity all of Texas is using at once. You won't see it on your bill, but you'll hear it whenever ERCOT talks about the grid.
One megawatt powers roughly 200 Texas homes during a summer afternoon. ERCOT set its all-time peak demand record on August 20, 2024, when statewide demand topped 85,500 megawatts.
Related: Kilowatt , Watt , Peak Demand , Baseload
A unit of electrical energy equal to 1,000 kilowatt-hours. Wholesale electricity is priced and traded in megawatt-hours, while retail bills report household consumption in kilowatt-hours.
A household that uses 1,000 kWh in a month has consumed exactly 1 MWh; a provider paying $50 per MWh wholesale translates that to roughly 5 cents per kWh before adding delivery charges and margin.
Peak demand is the highest amount of electricity being used across the grid at one time, usually a hot summer afternoon between 3 and 7 p.m. when air conditioners run hardest. ERCOT watches peak demand closely because that's when the grid is stretched thinnest and prices climb.
Texas hits its yearly peak in July or August. The state's all-time record was about 85,500 megawatts, set August 20, 2024. Some time-of-use plans charge more during these peak hours to nudge you to shift usage to cheaper times.
Electricity consumed by appliances and devices when they are switched off or in standby mode but still plugged in. Common sources include older refrigerators, pool pumps, and electric water heaters running on incorrect schedules. Phantom loads appear as a baseline of consumption during hours when no one is actively using anything in the home.
On a Smart Meter Texas interval chart, a consistently elevated reading between midnight and 5 a.m. is a practical indicator that phantom loads may be significant.
A chemical fluid that circulates through an air conditioner or heat pump, absorbing heat indoors and releasing it outside. When the refrigerant level is low — often due to a leak — the system must run longer to cool a space, increasing electricity consumption significantly.
A technician who finds a low refrigerant charge will typically locate and repair the leak before recharging the system, since simply topping it off without fixing the leak is both wasteful and, for many modern refrigerants, regulated.
A standardized measure of air conditioner efficiency, calculated as total cooling output over a typical season divided by total electrical energy consumed. Higher SEER values mean less electricity is used to move the same amount of heat — a 20-SEER unit costs less to run than a 14-SEER unit doing identical work. Federal minimum standards require 14 SEER for new central air conditioners installed in the South.
A system below SEER 14 consumes noticeably more electricity per degree of cooling, which shows up directly in summer bills even if usage habits and rates stay constant.
A pool circulation pump that runs at one fixed motor speed, typically full power, regardless of the filtration task at hand. Because it cannot slow down for lighter-duty cycles, it consumes substantially more electricity than variable-speed alternatives and is a notable contributor to high summer bills in Texas homes with pools.
Replacing a single-speed pump with a variable-speed model is one of the higher-return efficiency upgrades available to Texas pool owners, often saving 70–80% of the pump's prior energy use.
A volt measures the electrical pressure that pushes current through your wires. Standard outlets in Texas homes run at about 120 volts; large appliances like a dryer or electric range use 240 volts.
Voltage is the push, current (measured in amps) is the flow, and power (watts) is what you get when you multiply them together.
A watt is the basic unit of electric power. It tells you how much electricity a device draws while it's on. The higher the wattage, the more energy a device burns and the more it adds to your bill.
An LED bulb might use 9 watts; an old incandescent used 60. A thousand watts equals one kilowatt, the size used to price your electricity.
Related: Kilowatt , Kilowatt-Hour , Electricity Usage
Plan types and how to compare what you’ll actually pay.
Texas requires every plan to disclose its average price at three fixed usage points — 500, 1,000, and 2,000 kWh per month — on the Electricity Facts Label. This lets you compare plans on equal footing instead of trusting a single advertised number.
The 1,000 kWh figure is the one most often advertised, but if your home uses 600 or 1,800 kWh, that number can mislead you. Find the column closest to your real usage before you judge a plan.
Related: Average Price per kWh , Usage Gimmick / Cliff , All-In Price , Teaser Rate
What you truly pay per kilowatt-hour once everything is counted — the energy charge, any monthly base fee, bill credits, and the TDU delivery charges your retailer passes through. It's the only price worth comparing across plans.
A plan can show a tiny energy rate and still cost more than a rival once a $9.95 monthly fee and delivery charges get added in. On the Electricity Facts Label, the all-in number is the "average price per kWh" at each usage level.
Related: Average Price per kWh , Advertised Rate at 500 / 1,000 / 2,000 kWh , Teaser Rate , Fixed-Rate Plan
The all-in price you actually pay per kilowatt-hour at a given usage level — energy charge, base fees, bill credits, and TDU delivery charges rolled together, then divided by the kilowatt-hours used. It's the honest number to compare plans by, not the headline energy rate.
Because monthly fees and bill credits get spread across your usage, the average price changes with how much you use. That's why the Electricity Facts Label shows it at 500, 1,000, and 2,000 kWh.
Related: Advertised Rate at 500 / 1,000 / 2,000 kWh , All-In Price , Tiered / Bill-Credit Plan , Usage Gimmick / Cliff
A flat dollar amount the retailer adds every billing cycle no matter how much you use — sometimes called a base charge, monthly service fee, or minimum-usage fee. It quietly raises your real cost per kWh, especially in low-usage months.
A $9.95 monthly fee barely moves the needle at 2,000 kWh but stings at 400 kWh, where it can add two or three cents per kWh. Some plans flip it into a penalty: use under, say, 1,000 kWh and they tack on a $9.95 charge.
Related: All-In Price , Average Price per kWh , Usage Gimmick / Cliff
A plan that locks your energy price per kilowatt-hour for the whole contract term, so the rate can't jump month to month. Most fixed-rate plans in Texas run 12, 24, or 36 months.
Your bill still rises and falls with how much you use, and the TDU delivery charges your retailer passes through can shift, but the energy rate the retailer charges stays put. It's the most predictable option for budgeting.
Related: Variable-Rate Plan , Average Price per kWh , All-In Price
An agreement to buy or sell electricity at a fixed price for delivery on a future date. Retail providers use forward contracts to lock in their cost of summer supply months in advance, which is what allows them to offer fixed-rate plans—the summer risk premium is already built into the contracted price.
A time-of-use plan that gives away electricity during set hours — overnight, on weekends, or both — but charges a higher rate the rest of the time to make up for it. "Free" only applies inside the marketed window.
The daytime rate usually runs well above average, so these plans favor people who use most of their power when it's free — night-shift workers, EV owners charging at 2 a.m., or families who run the AC hard on Saturdays. Run the math against your real schedule.
Related: Time-of-Use Plan , Average Price per kWh , Usage Gimmick / Cliff
A plan where your price per kWh is tied to a published formula — usually a natural-gas index or a wholesale market price — so it moves with that benchmark instead of staying fixed. The retailer must spell out the formula in the contract.
An indexed plan differs from a plain variable plan because the price isn't set at the retailer's discretion; it's calculated from an outside number. You still carry the risk that the index spikes when wholesale power gets expensive.
Related: Variable-Rate Plan , Fixed-Rate Plan
Time windows defined in a time-of-use electricity plan during which electricity is priced differently based on grid demand. On-peak periods—typically weekday afternoons from around 3 p.m. to 8 p.m.—carry a higher per-kWh rate, while off-peak hours carry a lower rate. Shifting discretionary loads such as laundry, dishwashers, and device charging to off-peak windows is the primary strategy for reducing costs on a TOU plan.
A plan where you pay for electricity before you use it and draw down a balance, instead of getting a bill at the end of the month. Most prepaid plans skip the credit check and deposit, which is why credit-challenged Texans often start here.
Prepaid service requires a smart meter, which reports your usage daily and lets the retailer send low-balance alerts. Run the balance to zero and service can be cut off fast — though Texas rules block disconnection on weekends, on holidays, and during extreme heat or cold. The trade-off for no deposit is the risk of running dry.
Related: Variable-Rate Plan , Average Price per kWh
A low headline price built to win the click or the sign-up, then propped up by conditions you might not notice — a bill credit you have to hit, a short intro period, or a usage level you don't actually match. The number you see isn't the number most people pay.
A plan can advertise a rock-bottom rate at 1,000 kWh because that's exactly where a bill credit lands, while the price at 500 or 2,000 kWh runs far higher. The teaser is the bait; the Electricity Facts Label is where the truth lives.
Related: Advertised Rate at 500 / 1,000 / 2,000 kWh , Usage Gimmick / Cliff , Tiered / Bill-Credit Plan , All-In Price
A plan that hands you a flat dollar credit only if your monthly usage lands inside a set window — say, a $100 credit for using between 1,000 and 2,000 kWh. Hit the target and the effective rate looks great; miss it and the credit vanishes.
These plans advertise a low average price at exactly the usage level where the credit kicks in. Use a little less and you lose the whole credit, so a 950 kWh month can cost more than a 1,050 kWh month.
Related: Usage Gimmick / Cliff , Average Price per kWh , Advertised Rate at 500 / 1,000 / 2,000 kWh
A plan that charges different per-kWh prices at different times of day — a higher rate during peak hours (often weekday afternoons and evenings) and a lower rate off-peak. It rewards you for shifting heavy use, like laundry or EV charging, to cheaper hours.
Your smart meter records when you pull power, so the retailer can bill by time block. These plans only pay off if you can actually move your usage; if your big loads run during peak, you'll pay more.
Related: Free Nights / Weekends Plan , Fixed-Rate Plan
A plan design where your cost per kWh jumps sharply once your usage crosses a hidden threshold — the "cliff." It's how a plan can show a low advertised price at 1,000 kWh while charging far more if you use 999 or 1,200.
The classic version is a bill credit that disappears below a usage line. Always check the Electricity Facts Label at all three usage points; a big gap between the 500 and 1,000 kWh prices is the warning sign.
Related: Tiered / Bill-Credit Plan , Advertised Rate at 500 / 1,000 / 2,000 kWh , Average Price per kWh , Teaser Rate
A higher per-kWh rate that activates once monthly consumption exceeds a specified ceiling, such as 2,000 or 3,000 kWh. The inverse of a minimum usage fee, it targets high-consumption months rather than low ones, and most commonly appears in wholesale-indexed and budget plans. The threshold and elevated rate must be disclosed on the Electricity Facts Label and in the Terms of Service.
A household running central air conditioning heavily in August may unknowingly cross a 2,000 kWh ceiling and trigger a surcharge rate on every additional kWh for that billing period.
A plan with no locked price — the retailer can raise or lower your per-kWh rate from one billing cycle to the next. There's usually no contract and no early termination fee, so you can leave anytime.
The danger is the price spike. Many Texans land on a variable rate when a fixed contract ends, then watch the rate climb sharply in summer. The freedom to switch is the trade-off for that risk.
Related: Fixed-Rate Plan , Indexed Plan , Teaser Rate
Every line item on your Texas electric bill, explained.
A billing option that smooths your payment to a steady monthly amount instead of letting it spike in a hot Texas August. Your provider averages your usage over the past year so winter and summer even out.
You still pay for every kWh you use; the bill is just spread out. Providers true up the difference periodically, so a hotter-than-usual year can leave a balance to settle. It helps with budgeting, not with using less.
Related: Energy (Supply) Charge
An arrangement that lets you split a past-due balance into installments instead of paying it all at once, so you can keep your service on. In Texas, providers must offer one in certain situations, like an underbilling of $50 or more or bills that came due during a declared extreme-weather emergency.
You pay your current bills plus a piece of the old balance each month until it's cleared. The provider can place a switch-hold on your account until you finish paying, which stops you from moving to a new provider in the meantime.
Related: Disconnection for Non-Payment , Late Payment Penalty , Average (Budget) Billing
Interest that a Retail Electric Provider is required by PUCT rules to pay on a residential security deposit for the entire time it is held. The interest rate is set annually by the Public Utility Commission of Texas. Both the original deposit and the accrued interest must be returned to the customer after 12 consecutive months of on-time payments or upon final account closure.
For 2024 the PUCT set the rate at 0.55 percent, meaning a $360 deposit would earn roughly $1.98 in interest over one year.
When you fall far enough behind on payment, your provider can have your electricity shut off. Texas rules require a separate written notice with a disconnect date at least 10 days out, and you can avoid it by paying or setting up an arrangement first.
Texas bars disconnection on weekends, holidays, and the day before one (unless the provider can take payment and reconnect), and during a declared extreme-heat or extreme-cold weather emergency in your area. Households with a qualifying serious medical condition can get extra protection. If you're at risk, call your provider before the date on the notice.
Related: Reconnection Fee , Late Payment Penalty , Deferred Payment Plan
The part of your bill you pay for the electricity itself, billed at your plan's per-kWh rate. This is the piece your retail provider competes on and the number you're choosing when you shop for a plan.
Use 1,000 kWh on a plan priced at 14 cents per kWh and the supply charge is about $140 before delivery charges and fees. Switch plans or providers and this is the part of the bill that changes.
Related: TDU Delivery Charge , Supply vs. Delivery on Your Bill , Base Charge / Monthly Service Fee
A bill based on a guess of your usage rather than an actual reading from your meter, usually because the utility couldn't get a real read that cycle. Texas smart meters made this rare, but it still happens.
An estimate that runs high or low gets corrected on the next actual read, so your following bill may swing the other way. If estimates keep showing up, ask your provider or utility to check the meter.
Related: TDU Delivery Charge
A fee your provider can add when you don't pay by the due date. In Texas, a provider may charge a one-time penalty of up to 5% of the past-due amount on a residential bill.
Your bill is due at least 16 days after it's issued. The penalty is one-time, applies to the unpaid balance rather than your whole account, and can't be charged again on that same balance. The exact terms are spelled out in your plan's Terms of Service.
Related: Disconnection for Non-Payment , Reconnection Fee
A conditional charge added to a Texas electricity bill whenever monthly consumption falls below a specified threshold, typically 500 or 1,000 kWh. Unlike a flat base charge, it disappears in months when usage meets or exceeds the threshold. It must be disclosed on the Electricity Facts Label but is easy to overlook when comparing plans by advertised rate alone.
A plan advertised at 11.9 ¢/kWh at 1,000 kWh may carry an effective rate closer to 14–15 ¢/kWh at 500 kWh once a $9.95 minimum usage fee is factored in.
Costs your retail provider collects on your bill but doesn't keep, like the TDU delivery charges or certain state and regulatory fees. They show up on your bill but the money goes to the utility or the state.
Because these are out of the provider's control, a plan's per-kWh rate may or may not include them. Always check whether a quoted price is 'all-in' or whether delivery charges and pass-throughs get added on top.
Related: TDU Delivery Charge , Supply vs. Delivery on Your Bill , Energy (Supply) Charge
What you pay to turn the lights back on after a disconnection for non-payment. The fee covers the utility's work to restore service plus any amount your provider adds, and you typically have to clear the past-due balance too.
With a Texas smart meter, reconnection is often remote and fast once you've paid, but the fee still applies. The amount is listed in your plan's Terms of Service.
Related: Disconnection for Non-Payment , Late Payment Penalty
Your electric bill is built from two stacks: supply (the electricity you used, set by your retail plan) and delivery (moving it to your house, set by your local utility). Knowing which is which tells you what you can actually shop for and what's fixed.
Shopping for a cheaper plan only moves the supply side. The delivery side is the same for everyone in your utility's territory, so a quoted 'all-in' price already bakes delivery into the per-kWh number.
Related: Energy (Supply) Charge , TDU Delivery Charge , Pass-Through Charges
The part of your bill that pays to move electricity over the poles and wires to your home. It goes to your local utility (Oncor, CenterPoint, AEP Texas, or TNMP), not your retail provider, and it's the same no matter which plan you pick.
It has two pieces: a flat monthly meter fee (a few dollars) plus a per-kWh delivery rate. The PUCT approves these rates, so no retail provider can discount them. Your provider collects the charge on your bill and passes it straight to the utility.
Related: Transmission & Distribution Utility , Pass-Through Charges , Energy (Supply) Charge , Supply vs. Delivery on Your Bill
A dollar amount your provider knocks off your bill when your usage lands in a set range, often something like $30 to $100 off if you use between 1,000 and 2,000 kWh in a month. It's the mechanic behind many plans that advertise a stunningly low rate at exactly 1,000 kWh.
The catch is the cliff: use 999 kWh instead of 1,000 and the credit can vanish, so a small drop in usage spikes your effective rate. Read the Electricity Facts Label to find the exact thresholds before you sign up.
Related: Base Charge / Monthly Service Fee , Energy (Supply) Charge , Electricity Facts Label
The paperwork that defines your plan — and your rights.
When your fixed-term plan ends, your provider may automatically roll you onto a new plan or a month-to-month rate instead of cutting off your power. That new rate is often a higher, variable price.
Texas providers must send you a contract expiration notice at least 14 days before this happens. Read it, because the default month-to-month rate they move you to is usually much higher than what you'd find by shopping a new fixed plan.
Related: Holdover (Default Renewal) , Month-to-Month Plan , Contract Expiration Notice , Contract Term Length
A creditworthy third party who agrees in writing to be financially responsible for a utility account if the primary customer fails to pay. Under PUCT rules, having an approved co-signer or guarantor entitles a residential customer to a deposit waiver, because the provider's credit risk is effectively transferred to the co-signer.
A written notice your provider must send at least 14 days before your fixed-term plan ends, telling you the contract is expiring and what happens next if you do nothing. Texas rules require it on every term contract.
Treat it as your cue to shop. The notice spells out the rate you'll roll onto, usually a higher month-to-month or holdover price, so you can lock in a new fixed plan before that kicks in. You can switch in the last 14 days of your term with no early termination fee.
Related: Automatic Renewal , Holdover (Default Renewal) , Contract Term Length , Month-to-Month Plan
How long your plan locks in its price and terms, listed in months on the EFL. Common terms run 3, 6, 12, 24, or 36 months. With a fixed-rate plan, your energy rate holds for the whole term.
Leaving before the term ends usually triggers an early termination fee, unless you're inside the three-day cancellation window or you're moving out of the service area.
Related: Early Termination Fee , Month-to-Month Plan , Contract Expiration Notice , Electricity Facts Label
A charge your provider bills you for canceling a fixed-term plan before it ends. The amount is listed on your EFL and Terms of Service, often a flat fee like $150 or a charge per month remaining.
Texas rules waive the ETF if you cancel within the three-day right of rescission, if you're moving and give a forwarding address plus proof you no longer live at the address, or if you switch in the last 14 days of your term. Leaving early just to chase a cheaper rate does not waive it.
Related: Contract Term Length , Right of Rescission (3-Day Cancellation) , Contract Expiration Notice , Electricity Facts Label
A one-page, standardized disclosure every Texas retail electric provider must give you before you sign up. It spells out the average price per kilowatt-hour at 500, 1,000, and 2,000 kWh, the contract length, any fees, and whether the rate is fixed or variable.
The EFL is the document to actually compare plans on. Two plans can advertise the same headline rate, but the EFL shows the real average price at your usage level once the base charge and TDU delivery fees are baked in.
Related: Terms of Service , Your Rights as a Customer , Contract Term Length
A plan that locks your energy price per kilowatt-hour for the entire contract term, so the rate on your EFL won't change month to month. Most fixed-rate plans run 12 to 36 months.
Fixed means the energy charge is steady; your total bill still rises and falls with how much you use, and pass-through TDU delivery charges can change. Leaving early usually means an ETF.
Related: Contract Term Length , Early Termination Fee , Electricity Facts Label
The rate your provider puts you on when your fixed-term contract expires and you haven't picked a new plan. It's typically a variable, month-to-month price that can change every billing cycle.
Holdover keeps your lights on so you're never cut off at the end of a term, but the price tends to drift higher. It's the rate to shop your way off of as soon as your contract expiration notice arrives.
Related: Automatic Renewal , Month-to-Month Plan , Contract Expiration Notice
A plan with no fixed term and no early termination fee, so you can switch or cancel anytime. The trade-off is a variable rate that can change from month to month.
Month-to-month suits renters and short-timers who value flexibility, but over a full year a fixed-rate plan usually costs less because the price is locked.
Related: Contract Term Length , Early Termination Fee , Holdover (Default Renewal)
Your right under Texas rules to cancel a new electricity contract within three federal business days, with no penalty and no early termination fee. It's a built-in cooling-off period when you switch providers.
The three days start the day you receive your Terms of Service document. Cancel in that window and you owe nothing, and the provider can't charge an ETF. The rescission right does not apply to a move-in, where you're starting service at a new address.
Related: Early Termination Fee , Satisfaction Guarantee , Terms of Service
A promise some providers add letting you leave within an early window, often the first 30 to 60 days, without paying the early termination fee if you're unhappy with the service.
This is a marketing perk, not a state requirement, so the exact window and conditions live in the Terms of Service. It's separate from the three-day right of rescission, which Texas guarantees on every switch.
Related: Early Termination Fee , Right of Rescission (3-Day Cancellation) , Terms of Service
An upfront amount a provider may require before starting service, usually based on a credit check. It's held as protection against unpaid bills and refunded or credited later, after you've paid on time for a stretch.
Texas rules cap how large the deposit can be and let many customers skip it with satisfactory credit, a prior record of on-time payment, or qualifying status such as age 65 and over or being a victim of family violence. The provider must return the deposit with interest after 12 consecutive on-time payments, or credit it to your final bill when you close the account.
Related: Your Rights as a Customer , Terms of Service , Satisfaction Guarantee
The contract document that lays out the full legal terms between you and your electric provider: billing, deposits, late fees, cancellation, and how either side can end the agreement. The EFL gives you the price; the Terms of Service gives you the rules.
Texas providers must hand you the TOS along with the EFL and Your Rights as a Customer before you enroll. It's where you'll find the early termination fee amount and how disconnection works. Your three-day right to cancel starts the day you receive this document.
Related: Electricity Facts Label , Your Rights as a Customer , Early Termination Fee , Right of Rescission (3-Day Cancellation)
A required document from your electric provider that explains your protections under Texas rules: how billing and disconnection work, how to dispute a charge, deposit rules, and where to file a complaint with the Public Utility Commission of Texas.
Along with the EFL and Terms of Service, YRAC is one of the documents a provider must give you when you sign up. It spells out things like when you can't be disconnected during an extreme-weather emergency.
Related: Electricity Facts Label , Terms of Service , Security Deposit
How Texas’s competitive electricity market works.
Not every Texan can shop for electricity. In competitive areas you choose your provider; in regulated areas, served by a city-owned utility or an electric cooperative, your power company is set by where you live.
Cities like Austin (Austin Energy) and San Antonio (CPS Energy) run their own municipal utilities and stayed out of competition, as did many rural co-ops. If you live in one of these areas, sites like Power to Choose won't show plans for your address, because there's nothing to switch to.
Related: Customer of Choice , Electricity Deregulation in Texas , Incumbent Utility , Retail Competition
Cramming is when extra charges you never agreed to get added to your electric bill. Texas law bans it, and you have the right to dispute the charges and get them removed.
Watch for vague line items or add-on fees for products and services you don't recognize. Call your provider first; if it isn't resolved, file a complaint with the Public Utility Commission of Texas.
Related: Slamming , Retail Electric Provider
A customer of choice is anyone in a deregulated part of Texas who is free to pick their own Retail Electric Provider. If you live in a competitive area served by the ERCOT grid, that is you.
The flip side: people served by a municipal utility or an electric co-op that has not opted into competition are not customers of choice, because their power company is set by where they live.
Related: Competitive vs. Regulated Areas , Retail Electric Provider , Electricity Deregulation in Texas , Switching Providers
A nonprofit, member-owned utility that generates or distributes electricity to its members, typically in rural areas of Texas. Unlike investor-owned utilities or retail electric providers, cooperatives are governed by an elected member board and are generally outside PUCT jurisdiction for rate-setting — members vote on rates rather than a state regulator approving them.
Examples in Texas include Pedernales Electric Cooperative and Oncor's rural counterparts; customers of these cooperatives cannot switch to a competitive REP.
Deregulation is the change in Texas law that let you choose the company you buy electricity from, instead of being assigned one by default. The old utility still delivers the power, but you now pick the provider, the plan, and the price.
The Legislature passed Senate Bill 7 in 1999, and retail competition opened on January 1, 2002. It split the old all-in-one utilities into three parts: companies that generate power, the wires company that delivers it, and the Retail Electric Providers that sell it to you. About 85% of Texans now live in a competitive area and can shop for their plan.
Related: Retail Electric Provider , Retail Competition , Competitive vs. Regulated Areas , Incumbent Utility
The incumbent utility is the company that owns the poles, wires, and meter in your area and delivers electricity to your home, no matter which Retail Electric Provider you choose. In Texas these are the Transmission and Distribution Utilities, like Oncor, CenterPoint, AEP Texas, and TNMP.
You don't get to pick your delivery utility; it's set by your address. It's also who you call when the power goes out, since your retail provider only handles billing and the plan, not the lines.
Related: Retail Electric Provider , Competitive vs. Regulated Areas , Electricity Deregulation in Texas , Transfer of Service
A privately owned, for-profit electric utility that operates under a government-granted franchise and is regulated by a state commission rather than a city council or member board. In Texas's deregulated market, the four TDUs — Oncor, CenterPoint, AEP Texas, and TNMP — are investor-owned utilities, distinguishing them from municipal utilities and electric cooperatives.
An electric utility owned and operated by a city or local government, with rates set by the municipality rather than a state regulator. In Texas, municipal utilities such as CPS Energy (San Antonio) and Austin Energy (Austin) operate outside the ERCOT competitive market, so residents in those areas cannot choose a retail electric provider.
An electric utility that is owned and operated by a local government rather than a private company or cooperative. In Texas, examples include Austin Energy and CPS Energy (San Antonio). Municipally owned utilities are not subject to the state's retail deregulation rules, meaning their customers cannot choose a competitive retail electric provider and do not have access to programs like Smart Meter Texas.
Power to Choose is the free, official electricity shopping website run by the Public Utility Commission of Texas. It lists plans from certified providers in your area so you can compare them side by side.
The site shows the price per kilowatt-hour at three usage levels and links to each plan's Electricity Facts Label. It is not a provider itself; it is a state-run listing, and you cannot sign up there. Once you pick a plan, it sends you to that company to enroll.
Related: Retail Electric Provider , Retail Competition , Switching Providers , Electricity Deregulation in Texas
Retail competition means dozens of Retail Electric Providers fight for your business in the same area, so you can compare prices and switch whenever you want. Because no single company is handed your account, providers have to compete on rate and service to win it.
In a typical Texas city you might see 40 or more providers and well over 100 plans for one address. That choice is the whole point of competition, though it also means you have to read the fine print to avoid a bad deal.
Related: Retail Electric Provider , Electricity Deregulation in Texas , Power to Choose , Switching Providers
A Retail Electric Provider is the company you buy your electricity from and that sends you a bill. In Texas, REPs compete for your business by setting their own prices and plans, while a separate utility delivers the power over the wires.
Companies like TXU Energy, Reliant, Gexa, and Frontier Utilities are REPs. They must be certified by the Public Utility Commission of Texas (PUCT), and any REP can serve any address inside a competitive area, no matter who owns the poles.
Related: Incumbent Utility , Switching Providers , Power to Choose , Electricity Deregulation in Texas
The geographic area within which a utility holds an exclusive franchise to own and operate electric distribution infrastructure, as authorized by the PUCT. Every address in deregulated Texas falls within exactly one TDU's service territory, a boundary determined by geography that cannot be changed by switching retail electric providers.
Slamming is when a provider switches your electric service to their company without your clear permission. It is illegal in Texas, and you can report it to the Public Utility Commission of Texas.
It often starts with a misleading sales call or a signature collected under false pretenses. If you get a confirmation letter for a switch you never agreed to, contact your current provider and file a complaint with the PUCT. The unauthorized provider has to return you to your old plan and refund what you paid, and you should not be charged extra to switch back.
Related: Cramming , Switching Providers , Retail Electric Provider
A type of credit inquiry that does not affect the consumer's credit score and is not visible to other lenders. Electric providers commonly use soft pulls when screening applicants for deposit requirements, as opposed to a hard inquiry, which is recorded on the credit file and can lower a score temporarily.
Switching providers means moving your account from one Retail Electric Provider to another to get a better rate or plan. In Texas you do it online or by phone in minutes, your power never goes off, and no one comes to your house.
The new provider handles the swap and your meter, poles, and wires stay exactly the same. The change usually takes effect on your next meter read, often within a few days. Check your current contract first, since switching before it ends can trigger an early termination fee.
Related: Retail Electric Provider , Transfer of Service , Power to Choose , Slamming
Transfer or establishment of service is what you do when you move into a new Texas home: you sign up with a Retail Electric Provider and pick a date to turn the power on. It is different from switching, which keeps you at the same address.
You'll usually need your new address, a move-in date, and sometimes the meter's ESIID. If the home's power is already off, allow extra time for the utility to reconnect it; same-day or next-day starts are common but not guaranteed.
Related: Switching Providers , Retail Electric Provider , Incumbent Utility
A credit report generated specifically for utility service applications, drawing on a customer's history with electric, gas, water, and telecom accounts rather than general lending. Specialty consumer reporting agencies such as Equifax's National Consumer Telecom and Utilities Exchange (NCTUE) compile these reports. Providers use them to assess default risk when deciding whether to require a deposit.
A customer with no traditional credit card or loan history may still have a thin or negative utility credit file if they have prior unpaid utility accounts in collections.
How the Texas power grid works and who keeps it running.
Ancillary services are the backup and balancing tools ERCOT buys to keep the grid stable from moment to moment, beyond the raw electricity itself. They include reserves that can jump in within seconds if a power plant trips offline and services that fine-tune the grid's frequency.
Examples include Responsive Reserve, Regulation Up and Down, and the ERCOT Contingency Reserve Service (ECRS). The cost of these services is built into wholesale prices and can spike during tight grid conditions, which is one reason summer wholesale costs climb.
Related: ERCOT , Reserve Margin , Real-Time vs. Day-Ahead Market , Transmission Congestion
A conservation appeal is a public request from ERCOT asking Texans to voluntarily cut back electricity use during tight grid conditions, usually a brutally hot afternoon or a cold snap. It's a request, not a requirement, and it's meant to ease demand before ERCOT has to take more drastic steps.
Typical asks: set the thermostat to 78 or higher, hold off on the dishwasher, dryer, and oven until evening, and turn off lights you're not using, especially during the 3 to 8 p.m. window when demand peaks. Honoring these appeals can help head off an Energy Emergency Alert.
Related: Energy Emergency Alert , Summer Peak Demand , ERCOT
A program that compensates electricity customers—residential or commercial—for voluntarily reducing their usage during periods of high grid stress. In Texas, retail providers offer demand response programs, often paired with smart thermostats, that issue bill credits when enrolled customers curtail load during designated peak summer hours.
ERCOT estimates a 1 percent reduction in peak demand during a stressed grid event can lower wholesale prices by 3 to 5 percent for all market participants.
An Energy Emergency Alert is ERCOT's official warning system for when electricity supply gets dangerously close to demand. It has three levels that climb in severity, and at the top level ERCOT can order temporary rotating outages to keep the whole grid from crashing.
ERCOT issues an EEA Level 1 when operating reserves fall to about 2,500 MW and aren't expected to recover within 30 minutes. Level 2 (around 2,000 MW) brings public conservation appeals and can call on large customers to cut usage. Level 3 (below about 1,500 MW) authorizes controlled rotating outages, brief planned blackouts spread across neighborhoods to protect the grid. ERCOT raised these thresholds in November 2023.
Related: ERCOT , Conservation Appeal , Reserve Margin , Summer Peak Demand
ERCOT, the Electric Reliability Council of Texas, runs the power grid for about 90% of the state. It balances electricity supply and demand second by second, manages the wholesale market where power gets bought and sold, and keeps the lights on. It is not your provider and does not send you a bill.
Think of ERCOT as air traffic control for electrons. When you hear about grid emergencies or calls to conserve power on a hot August afternoon, that is ERCOT. It is a nonprofit overseen by the Public Utility Commission of Texas (PUCT) and the Texas Legislature.
Related: Texas Interconnection , Grid Operator , Public Utility Commission of Texas , Energy Emergency Alert , Real-Time vs. Day-Ahead Market
A grid operator is the organization that keeps electricity supply and demand in balance across a region and decides which power plants run at any given moment. In most of Texas, that job belongs to ERCOT.
The grid operator doesn't own the wires or the power plants and doesn't sell you electricity. It coordinates everyone else, the generators, the wires companies (TDUs), and the retail providers (REPs), so the system stays stable.
Related: ERCOT , Texas Interconnection , Transmission & Distribution Utility
A load zone is one of the geographic areas ERCOT uses to price and settle wholesale electricity. Texas is split into zones like North, Houston, South, and West, and the wholesale price can differ from zone to zone depending on local supply, demand, and how much power the transmission lines can carry.
Most customers never see load zones directly, but they shape the wholesale prices that providers pay, which eventually flow into the plans you're offered. A heat wave or a transmission bottleneck can push one zone's price far above another's on the same day.
Related: Transmission Congestion , Real-Time vs. Day-Ahead Market , ERCOT
The wholesale cost of electricity at a specific node or load zone on the grid during a given settlement interval, calculated by ERCOT every 15 minutes. LMPs can vary significantly by location when transmission lines become congested and reflect the true supply-and-demand balance at that point.
During the August 2023 heat event, the real-time LMP for the Houston load zone exceeded $1,000 per MWh while prices at less-constrained zones were considerably lower.
The single wholesale price paid to every generator dispatched in a given ERCOT settlement interval, set by the bid of the most expensive unit needed to satisfy demand at that moment. Because all sellers receive this same uniform price, even lower-cost wind and gas plants earn the elevated rate when a costly peaker plant sets the margin.
A power plant—typically a fast-starting natural gas turbine—that runs only during periods of high electricity demand. Peaker plants carry higher per-unit fuel and operating costs than always-on baseload generators, and because they are the last units dispatched when demand spikes, they often set the market clearing price during summer afternoons.
These are the two wholesale markets where electricity gets bought and sold in Texas before it reaches you. The day-ahead market lets providers and generators lock in prices for each hour of the next day, while the real-time market settles the actual supply and demand right now, with prices recalculated every five minutes.
ERCOT's real-time prices can swing wildly, from a few cents to the $2,000-per-MWh real-time cap during a crunch (the day-ahead cap is $5,000 per MWh; both took effect with ERCOT's market redesign in December 2025). The day-ahead market lets buyers hedge against those swings. On a fixed-rate plan, your provider absorbs this volatility; on a variable or wholesale-indexed plan, you can feel it directly.
Related: Load Zone , Transmission Congestion , Ancillary Services , ERCOT
The reserve margin is the cushion of extra power capacity Texas keeps beyond its expected peak demand, in case a plant breaks down or it gets hotter than forecast. A thin reserve margin means the grid has little room to spare and is more likely to hit an emergency.
Picture it as the buffer in your bank account above your bills. ERCOT tracks both a long-term planning reserve margin (capacity available for the year) and minute-to-minute operating reserves; when operating reserves run low, that's what triggers an Energy Emergency Alert.
Related: Summer Peak Demand , Energy Emergency Alert , Ancillary Services , ERCOT
Summer peak demand is the highest amount of electricity Texas uses at once, almost always on a scorching late afternoon in July or August when millions of air conditioners run flat out. ERCOT plans around this moment because it's when the grid is stretched tightest and prices run highest.
Peak hours typically fall between 3 and 8 p.m. on hot days. ERCOT set its all-time demand record of 85,508 MW on August 10, 2023. This is why some plans charge more, or why conservation appeals show up, during those late-afternoon hours.
Related: Conservation Appeal , Reserve Margin , Energy Emergency Alert , ERCOT
The Texas Interconnection is the power grid that covers most of Texas and stands almost entirely on its own, separate from the two big grids that serve the rest of the country. Because it stays inside state lines, federal regulators have little say over it, which is why Texas runs its own market through ERCOT.
The U.S. has three main grids: the Eastern Interconnection, the Western Interconnection, and Texas. Texas has only a handful of small links to its neighbors, so it can't easily import large amounts of power when supply runs short, the way other states can during an emergency.
Related: ERCOT , Grid Operator , Reserve Margin
Transmission congestion happens when the high-voltage power lines can't carry all the electricity that needs to move from where it's generated to where it's used. Like a traffic jam on the highway, it forces ERCOT to run more expensive power plants closer to demand, which pushes up the wholesale price in that area.
A common example: West Texas wind farms generate cheap power, but the lines carrying it east to the cities fill up. The wind power gets stuck, and Houston or Dallas pays more because nearer, pricier plants have to fill the gap.
Related: Load Zone , Real-Time vs. Day-Ahead Market , Ancillary Services
Rules requiring power generators, natural gas suppliers, and grid infrastructure owners to harden their equipment against extreme cold and heat to prevent weather-driven outages. In Texas, the PUCT and ERCOT developed mandatory weatherization requirements following the catastrophic failures during the February 2021 Winter Storm Uri.
The upstream market where power generators sell electricity to retail electric providers, utilities, and other large buyers — as distinct from the retail market where providers sell to end customers. In Texas, ERCOT administers this market through real-time and day-ahead auctions that set the price suppliers receive for their output.
Smart meters, your service ID, and how usage is measured.
The industry term for the whole setup that makes smart meters work: the meters themselves, the communication network that carries readings, and the software that stores and processes them. In Texas you'll more often see it called AMS, but AMI means the same thing.
Related: Advanced Metering System , Smart Meter , Interval Usage Data
The official Texas name for the smart meter program. AMS is the network of digital meters and the systems behind them that the wires companies (TDUs) installed across the state under PUCT rules, replacing manual meter reads with automatic two-way communication.
The PUCT approved AMS deployment under Substantive Rule 25.130 so utilities like Oncor, CenterPoint, AEP Texas, and TNMP could read meters remotely, connect or disconnect service faster, and give customers detailed usage data through Smart Meter Texas.
Related: Smart Meter , Advanced Metering Infrastructure , Smart Meter Texas , Transmission & Distribution Utility
The Electric Service Identifier, a unique number that pins down the exact electric meter at your address. It's like a Social Security number for your service location, and it follows the address, not you.
Your ESI ID is 17 digits in most of Texas (Oncor, AEP Texas, TNMP) and 22 digits in CenterPoint territory, and it shows up on your bill and on Smart Meter Texas. When you sign up or switch providers, the new provider uses your ESI ID to connect the right meter, which matters in apartments and duplexes where two units share one street address.
Related: Smart Meter , Meter Read , Smart Meter Texas , Transmission & Distribution Utility
A standardized data-sharing initiative that lets electricity customers download their interval usage data or authorize third-party access to it in a common machine-readable format. Texas TDUs provide Green Button-compatible portals so customers can retrieve their 12-month consumption history for plan comparison, energy audits, or solar sizing.
The detailed record of your electricity use broken into 15-minute chunks, captured by your smart meter. Instead of one number for the whole month, you can see exactly which hours and days you used the most power.
This data is what makes time-of-use and free-nights plans possible, because the meter knows whether you ran the AC at 3 p.m. or 3 a.m. View your own intervals on Smart Meter Texas to figure out whether a plan's pricing windows actually match your habits.
Related: Smart Meter , Smart Meter Texas , Meter Read , Advanced Metering Infrastructure
A number the utility multiplies your raw meter reading by to get your actual electricity use. Most homes have a multiplier of 1, so the meter shows true usage, but some larger or commercial services use a multiplier to scale the reading up.
When a multiplier above 1 applies, the meter records a fraction of the real usage and the utility multiplies it back out on your bill. If your kilowatt-hours look strangely low for the size of your operation, a multiplier is usually the reason.
Related: Meter Read , Smart Meter
The recorded measurement of how much electricity your meter has counted at a point in time. Your bill is built from two reads: the start of the billing cycle and the end. The difference is the kilowatt-hours you pay for.
With smart meters, reads happen automatically every day, so you rarely deal with estimated bills. When you switch providers or move, the TDU takes a 'switch read' or 'move-in read' to draw a clean line between the old account and the new one.
Related: Smart Meter , Interval Usage Data , Meter Multiplier , Transmission & Distribution Utility
A billing setup where the electricity your home sends back to the grid (usually from rooftop solar) is subtracted from the electricity you pull in, so you pay for the net amount. Texas has no statewide net metering mandate, so what you get depends entirely on your provider's plan.
Because no state rule forces it, Texas solar customers shop for 'solar buyback' plans, where individual retail providers set their own credit for the surplus you export. Some pay full retail rate, some pay less, and the terms vary plan to plan, so read the EFL before you sign.
Related: Smart Meter , Meter Read , Interval Usage Data
A small device that sits between an appliance's plug and a wall outlet, measuring how much electricity that appliance draws in real time and over time. It displays wattage, cumulative kWh, and sometimes estimated cost, helping users identify high-consumption devices.
Whole-home energy monitors install at the breaker panel and track usage by circuit, offering broader visibility than a single plug-in unit.
A digital electric meter that records how much electricity you use and sends those readings to your local wires company automatically over a wireless network. It replaced the old spinning-dial meters, so nobody has to walk up to your house to read it anymore.
In Texas, your local wires company (the TDU, like Oncor or CenterPoint) owns and maintains your smart meter, not your retail provider. Because readings come in automatically, you can switch plans without waiting for a meter reader, and you can see your daily usage online.
Related: Advanced Metering System , Smart Meter Texas , Interval Usage Data , ESI ID , Transmission & Distribution Utility
The choice some Texans can make to keep or request a non-digital meter instead of a smart meter. The PUCT calls this 'non-standard metering service,' and it comes with extra fees because the utility has to send someone to read your meter by hand.
Opting out is uncommon and usually driven by privacy or radio-frequency concerns. Expect a one-time setup charge plus a recurring monthly fee for the manual reads, and you still pay the AMS surcharge because state law (PURA 39.109) makes it nonbypassable. Availability and pricing differ by TDU, so check with yours.
Related: Smart Meter , Meter Read , Advanced Metering System , Transmission & Distribution Utility
The free website where Texans can see their own smart meter data. Log in to view your electricity use down to 15-minute intervals, going back months, no matter which retail provider you buy from.
Run jointly by the Texas TDUs, SmartMeterTexas.com lets you check exactly when you use the most power and authorize providers to pull your usage history when they quote you a plan. It's the single source of meter data shared across the deregulated market.
Related: Smart Meter , Interval Usage Data , Meter Read , ESI ID
A feature offered by metering portals such as Smart Meter Texas that allows customers to download their interval or daily electricity consumption as a comma-separated values (CSV) file. The exported file can be opened in a spreadsheet to calculate totals, identify patterns, or evaluate how a customer's usage would be priced under different rate plan structures.
Downloading a CSV and tallying consumption during a plan's defined peak hours is one of the most reliable ways to assess whether a time-of-use plan will save or cost money compared to a flat-rate alternative.
Green-energy plans, solar buyback, and renewable credits.
An electricity plan where the provider buys enough Renewable Energy Certificates to match 100% of what you use, usually from Texas wind and solar. Your home still draws the same mixed power from the grid — the green claim happens on paper through RECs.
A 100% renewable plan is not always pricier than a regular plan. Texas produces so much wind power that some all-renewable plans land at or below the market average. Check the price per kWh on the Electricity Facts Label, not just the green label.
Related: Renewable Energy Certificate , Green Energy , Carbon Offset
A credit that funds a project — like planting trees or capturing methane — to cancel out the carbon pollution from generating your electricity. Some Texas plans add offsets to call themselves carbon neutral.
A carbon offset is not the same as renewable power. Renewable Energy Certificates say your usage was matched with clean generation; an offset says the emissions were paid down somewhere else. A plan can use either, or both.
Related: Green Energy , Renewable Energy Certificate , 100% Renewable Plan
A shared solar project where you subscribe to part of a local solar farm and get bill credits for your share of the power it makes — no panels on your own roof. It's a way to go solar if you rent or have a shady or unsuitable roof.
Community solar is not as widespread in Texas as rooftop solar, and what's available depends on your TDU area and which providers run programs there. You stay on the grid and keep your normal retail provider; the subscription just adds solar credits.
Related: Rooftop Solar , Distributed Generation , Green Energy
Small-scale power made right where it's used — like rooftop solar panels or a home battery — instead of at a big central plant. In Texas, your home solar setup is distributed generation, and special rules apply when it sends power back to the grid.
A distributed generation system of 50 kW or less rarely causes grid problems, but it still needs your TDU's approval to interconnect and a special meter that reads power flowing both directions. Your TDU — Oncor, CenterPoint, AEP, or TNMP — handles that interconnection, not your retail provider.
Related: Rooftop Solar , Solar Buyback , Surplus Generation Credit , Interconnection Agreement
A catch-all term for electricity tied to renewable sources — mostly Texas wind, plus a growing amount of solar. On a plan, green usually means the provider matches part or all of your usage with Renewable Energy Certificates.
Watch the percentage. A plan can say green and still cover only 6% of your usage with renewables. The Electricity Facts Label spells out the exact renewable content, so read that number before you sign.
Related: Renewable Energy Certificate , 100% Renewable Plan , Carbon Offset
The approval and paperwork that lets your home solar system safely connect to the grid and send power back. In Texas your TDU — the wires company like Oncor or CenterPoint — runs this process and installs the two-way meter that measures your surplus.
You generally need an approved interconnection agreement before any solar buyback plan will credit you for surplus power. The TDU reviews your system for safety, then swaps in a meter that reads energy flowing both into and out of your home.
Related: Distributed Generation , Rooftop Solar , Solar Buyback , Surplus Generation Credit
A REC is proof that one megawatt-hour of electricity was generated from a renewable source like Texas wind or solar. When a plan calls itself green, the provider is buying RECs to match your usage — not literally piping clean power to your house.
Every electron on the grid mixes together, so no one can send you only wind power. RECs are the accounting system that lets a retailer claim renewable content. In Texas, ERCOT administers the REC trading program, and every retail provider must retire RECs each year to back its renewable claims.
Related: 100% Renewable Plan , Green Energy , Carbon Offset
Solar panels mounted on your house that turn sunlight into electricity for your own use. In Texas, rooftop solar can shrink your bill, but the panels are yours to buy or finance — your electricity provider doesn't install them.
When your panels make more than you use, the extra flows back to the grid. What you get for that surplus depends on your retail provider's solar buyback plan, not a statewide rule — Texas has no mandated net metering.
Related: Distributed Generation , Solar Buyback , Surplus Generation Credit , Community Solar
A plan that pays you — usually as a bill credit — for the extra solar power your panels send back to the grid. Texas has no statewide net metering law, so what you earn is set by each retail provider, and the rates vary a lot.
Read the fine print. Some plans credit you the full retail rate for surplus power; others pay a lower wholesale rate or cap how much they'll buy back. The credit terms live in the plan's Electricity Facts Label and terms of service.
Related: Surplus Generation Credit , Rooftop Solar , Distributed Generation , Interconnection Agreement
The bill credit you earn for solar power your home produces but doesn't use, which flows back onto the grid. On a Texas solar buyback plan, this credit shows up on your monthly bill and offsets what you owe.
Your retail provider sets the credit rate per kWh, since Texas doesn't require providers to pay retail price for surplus. Compare the buyback rate against the plan's energy rate — a plan with a high energy charge can wipe out a generous-looking credit.
Related: Solar Buyback , Rooftop Solar , Distributed Generation
Programs and protections if you’re struggling to pay.
Money or credit that helps you cover an electric bill you can't pay in full. In Texas it comes from a few places: the state's CEAP program, local nonprofits and churches, and sometimes a provider's own hardship fund. It's usually one-time help for a crisis, not an ongoing discount.
To find help near you, dial 2-1-1 or visit 211texas.org — the free referral line run by the Texas Health and Human Services Commission. It doesn't hand out money itself; it connects you to the agencies that do. Apply early, because funds run out fast in summer and winter when demand spikes.
Related: Comprehensive Energy Assistance Program , Deferred Payment Plan , Deposit Waiver
A PUCT designation for a home where someone relies on an electric-powered medical device to keep a serious medical condition from getting dangerously worse if the power goes out. A physician has to certify it. It gives you extra protection against disconnection and advance warning of planned outages, even when the situation isn't immediately life-threatening.
This sits one step below the Critical Care designation, which covers life-sustaining equipment. Like Critical Care, you apply through your wires company (the TDU) with a physician's sign-off on the same PUCT form, and it has to be renewed. It buys you time and notice — it doesn't wipe out what you owe.
Related: Critical Care Residential Customer , Medically Fragile Designation , Disconnection Moratorium (Extreme Weather)
Texas's main bill-help program for low-income households. It can pay part of your electric bill, step in during a crisis when you're facing disconnection, and in some cases repair or replace your heating or cooling system. You apply through your local community action agency, not your electricity provider.
CEAP is funded by the federal LIHEAP program and run by the Texas Department of Housing and Community Affairs (TDHCA). To qualify, your household income generally has to be at or below 150% of the federal poverty guidelines. Local agencies take applications in every one of Texas's 254 counties.
Related: Bill Payment Assistance , LITE-UP Texas , Deferred Payment Plan
A PUCT designation for a home where someone depends on an electric-powered medical device to stay alive — like a ventilator or oxygen concentrator. A physician has to certify it. It gives you the strongest protection against having your power shut off, plus advance notice before a planned outage.
You apply through your transmission and distribution utility — your wires company — using the PUCT's Chronic Condition / Critical Care form, signed by a physician. The designation has to be renewed periodically. It doesn't erase your bill — you still owe for what you use — but it changes the rules on disconnection and outage notice.
Related: Chronic Condition Residential Customer , Medically Fragile Designation , Disconnection Moratorium (Extreme Weather)
A way to skip the upfront security deposit an electricity provider would normally charge to start service. Under PUCT rules, a provider can't require a deposit if you can show certain things — such as a solid recent payment history, proof you're 65 or older with no past-due electric balance, or certification that you're a victim of family violence.
You can also get a deposit waived with a letter of credit from a prior electric utility showing 12 months of on-time payments, or by lining up a guarantor. When a deposit is required, the provider has to let you pay it in installments instead of all at once.
Related: Bill Payment Assistance , Deferred Payment Plan
A PUCT rule that bars electricity providers from cutting off your power for non-payment during dangerous weather. It's tied to the weather, not the calendar: a provider can't disconnect you on a day the National Weather Service has issued a heat advisory for your area, or during a freeze when the temperature is forecast to stay at or below 32°F.
The protection is temporary — it pauses disconnection during the dangerous stretch; it doesn't cancel the bill. When the weather passes, providers have to offer a deferred payment plan so you can catch up over time instead of all at once. Texas has no fixed winter or summer shutoff ban; the trigger is the weather itself.
Related: Deferred Payment Plan , Critical Care Residential Customer , Bill Payment Assistance
A billing option that smooths out your monthly electric payment so a brutal summer bill doesn't blindside you. Instead of paying for exactly what you used each month, you pay a steady amount based on your average usage over the past year. It makes budgeting easier, especially when Texas AC bills spike.
It changes the timing, not the total. The provider periodically "trues up" your account: if you've underpaid, you owe the difference; if you've overpaid, you get a credit. Ask your provider whether they offer it — the name varies (average billing, budget billing, balanced billing).
Related: Deferred Payment Plan , Bill Payment Assistance
A discontinued state program that gave low-income Texans a discount on their summer electric bills. It was paid for by the System Benefit Fund, a small fee added to every deregulated electricity bill. The Legislature ended the fee in 2013, and the last discounts went out on August 31, 2016, when the fund ran dry.
People still search for LITE-UP, but it no longer exists, and nothing has replaced it at the state level. If you need help with your bill today, the closest program is the Comprehensive Energy Assistance Program (CEAP), run through your local community action agency.
Related: Comprehensive Energy Assistance Program , Bill Payment Assistance
A general term for the protected status you get when someone in the home depends on keeping the power on for their health. In Texas this takes one of two official forms under PUCT rules: Critical Care (a life-sustaining device) or Chronic Condition (a serious illness that worsens without power). Either one requires a physician's certification.
Once you're on the list, your provider and your wires company have to give you extra notice before disconnecting and before any planned outage. You file the form with your transmission and distribution utility, and it has to be renewed on the schedule they set.
Related: Critical Care Residential Customer , Chronic Condition Residential Customer , Disconnection Moratorium (Extreme Weather)
The agencies and rules that protect Texas electricity customers.
A state official authorized to preside over formal contested hearings when a PUCT complaint cannot be resolved through informal mediation. The ALJ reviews evidence, takes testimony, and issues a proposal for decision that the PUCT commissioners may adopt, modify, or reject.
The PUCT rulebook that spells out what a retail electricity company must and cannot do to you, covering deposits, disconnection, billing accuracy, contract disclosures, and how complaints get handled. These rules are why a company has to send you a clear plan summary and cannot cut you off without proper notice.
They live in Subchapter R of the PUCT's electric rules, sections 25.471 through 25.500 of the Texas Administrative Code, Chapter 25. If a provider violates them, the PUCT can take action against its license.
Related: Public Utility Commission of Texas , REP Certification , PUCT Complaint Process , Switch-Hold , Do-Not-Call & Marketing Rules
State rules that limit how electricity companies can pitch you and ban switching your provider without your clear permission. Texas runs its own No Call Lists you can join to cut down on sales calls, and signing you up without consent (called slamming) is illegal.
The Texas No Call List is run by the PUCT, separate from the federal registry, and telemarketers must scrub registered numbers from their call lists. If a company switched your service without authorization or kept calling after you opted out, that is a complaint the PUCT will take.
Related: Customer Protection Rules , Public Utility Commission of Texas , PUCT Complaint Process
A nine-digit business ID that identifies your TDU in the system that moves your account between retail companies. You rarely see it, but when you switch plans, your enrollment carries your TDU's DUNS number so the right delivery company keeps serving your meter.
Each Texas TDU has its own DUNS number, for example Oncor and CenterPoint each have a distinct one. It is paperwork plumbing, but it is why a switch routes to the correct wires company.
Related: Transmission & Distribution Utility
The independent U.S. federal agency that regulates interstate electricity transmission and oversees wholesale electricity markets. In Texas, FERC has jurisdiction over ERCOT's wholesale market operations and any interstate transmission, while the PUCT governs the retail market and consumer protections.
Legal and regulatory protections that restrict how utilities and retail providers may access, share, or sell a customer's detailed interval usage data without explicit consent. In Texas, these rules are established under PUCT Substantive Rule 25.130. Because fine-grained usage data can reveal behavioral patterns such as occupancy schedules, regulators treat it differently from aggregate billing information.
A separate state office that represents residential and small-business customers in cases before the PUCT. When a utility asks to raise the delivery charges on your bill, OPUC is the side arguing on your behalf.
OPUC is independent from the PUCT on purpose: the PUCT decides, OPUC advocates for the little guy in the room. It does not handle individual billing complaints, that goes through the PUCT.
Related: Public Utility Commission of Texas , Transmission & Distribution Utility , PUCT Complaint Process
A backup retail company that keeps your power on if your current provider suddenly shuts down or loses its license. ERCOT moves you to the POLR automatically so your lights never go dark, then you are free to shop for a better plan.
The PUCT names which companies serve as POLR in each delivery area and reviews the list every two years. POLR service exists to prevent a gap, not to be a good deal: its rate is a variable holdover rate, usually higher than what you would find on the open market. If you land on it, treat it as temporary and switch as soon as you can.
Related: REP Certification , Public Utility Commission of Texas , Transmission & Distribution Utility , Customer Protection Rules
The state agency that regulates Texas's electricity market. It licenses the retail companies that sell you power, sets the customer-protection rules they must follow, and handles complaints when a provider does you wrong.
If a retail company breaks the rules, the PUCT can fine it or pull its license. Its consumer rules live in Chapter 25 of the Texas Administrative Code.
Related: REP Certification , Customer Protection Rules , PUCT Complaint Process , Office of Public Utility Counsel , ERCOT
The free path for getting a dispute with your electricity company settled when calling the company itself goes nowhere. You file with the PUCT, and the agency makes your provider investigate and respond, now within 15 days.
Start with your provider first, that is required, then file with the PUCT if it is not resolved. Keep your account number, bills, and notes on who you talked to; that record is what moves a complaint along.
Related: Public Utility Commission of Texas , Customer Protection Rules , Do-Not-Call & Marketing Rules , Office of Public Utility Counsel
A formal regulatory proceeding in which a utility petitions the PUCT for permission to change its tariff rates or charges. TDUs periodically file rate cases when their infrastructure costs change; approved adjustments affect the delivery charges that appear on every customer's bill regardless of which REP holds the account.
The license the PUCT requires before any company can sell you electricity in Texas. To get it, a retail electric provider (REP) has to prove it is financially sound, technically capable, and willing to follow the customer-protection rules.
Certification is not permanent, the PUCT can suspend or revoke it if a provider mistreats customers or goes broke, which is when its customers get moved to a Provider of Last Resort. You can confirm a company is certified on the PUCT's website before you sign up.
Related: Public Utility Commission of Texas , Provider of Last Resort , Customer Protection Rules , DUNS Number
A lock on your meter that stops you from switching to a new electricity company until you clear up what triggered it. The most common cause is a deferred payment plan on a past-due balance, you have to finish paying before the hold comes off.
Switch-holds also get placed for suspected meter tampering. They are governed by PUCT customer-protection rules, and only the company that placed the hold can lift it once you have met the terms.
Related: Customer Protection Rules , Transmission & Distribution Utility , Public Utility Commission of Texas , Deferred Payment Plan
A formal regulatory proceeding in which a Transmission and Distribution Utility (TDU) asks the Public Utility Commission of Texas (PUCT) to approve new delivery charge rates. When approved, the updated rates apply to every customer in that TDU's service territory, regardless of which retail electric provider the customer uses.
Rate cases typically occur every several years and reflect changes in the utility's infrastructure costs, storm recovery expenses, or capital investments.
The company that owns the poles, wires, and meter that physically deliver power to your home. You do not pick your TDU, it is set by where you live, and it is the same no matter which retail company you buy from. Oncor, CenterPoint, AEP Texas, and Texas-New Mexico Power are the big ones.
The TDU is who you call when the lights go out, and the delivery charges it bills are baked into every plan, regulated by the PUCT. Also called a TDSP (Transmission & Distribution Service Provider), the two terms mean the same thing.
Related: Public Utility Commission of Texas , DUNS Number , Provider of Last Resort , Switch-Hold
The federal statistical agency within the U.S. Department of Energy that collects and publishes data on energy production, consumption, and pricing across all states. Its annual residential electricity reports—covering average household usage and state average rates—are the standard benchmark cited in Texas electricity comparisons.
The official schedule of rates, charges, terms, and conditions that a regulated utility files with and gets approved by the PUCT. TDU delivery charges visible on every customer's electricity bill are set by tariff; current tariff documents for all Texas TDUs are publicly searchable in the PUCT interchange database.
A tariff is a legal document, not a tax — the word has a specific regulatory meaning distinct from its common usage in trade policy.
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