Energy Glossary

This section contains easy-to-understand explanations of terms used in regard to energy.

Affiliate Retail Electric Provider (AREP)

The Affiliate Retail Electric Provider was part of the original electric company that generated and sold electricity in your area. Now, the AREP only sells electricity and provides customer service.

Automatic Payment Program

Enjoy the convenience of recurring payments using your bank account or credit card. It's easy, free, and there is no need to buy stamps.

Average Price

The average price paid for this service period includes all current charges, excluding taxes, divided by your usage amount.

Billing Period

Indicates the period of time for which you are being billed for your electricity service.

Deregulation

Prior to deregulation, one company provided all parts of your electric service (generation, transmission and distribution, and retail sales). In a deregulated market, separate entities now provide these services and power generation and retail service become open to competition.

Distribution System

Local poles, wires, transformers, substations and other equipment used to deliver electricity from high-voltage transmission lines.

Do Not Call List

A PUCT list for customers who do not want to receive telemarketing calls from REPs.

Electric Reliability Council of Texas (ERCOT)

The council that administers and maintains the reliability of the state's electrical power grid. When you choose a Retail Electric Provider, ERCOT will send you a postcard confirming your switch.
ERCOT website.

Electricity Facts Label

The document required by the PUC containing pricing information, contract terms, sources of generation and levels of emissions in a standard format.

Generation

The production of electricity.

Kilowatt-hour (kWh)

The unit of measurement for the electricity you use over time. The amount of electricity you use each billing period is expressed in terms of a kilowatt-hour, and is noted on your bill.

Outage

If you experience an emergency or power outage, you may call the TDSP in your area.
  • Houston and neighboring areas: CenterPoint Energy 1-800-332-7143
  • Dallas/Fort Worth and neighboring areas: Oncor 1-888-313-4747
  • West Texas: Texas New Mexico Power 1-888-866-7456
  • South Texas: AEP Texas Central Company 1-866-223-8508


Provider of Last Resort (POLR)

If your Retail Electric Provider leaves the market for any reason, your service will automatically be transferred to the POLR, which serves as a back-up Retail Electric Provider in your area.

Public Utility Commission of Texas (PUCT)

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

Renewable Energy

Renewable Energy is earth friendly energy derived from renewable energy technologies, which includes any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived from the sun, moving water, or other natural movements and mechanisms of the environment. Renewable energy also includes earth friendly energy derived directly from the sun, on wind, geothermal, hydroelectric, wave, or tidal energy, or on biomass or biomass-based waste products, including landfill gas. Renewable energy is not derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources.

Retail Electric Provider (REP)

Retail Electric Providers, or REPs, are certified by the PUCT to compete for your business by offering lower prices, renewable energy options, added customer service benefits or other incentives. A REP sells electricity to customers.

Transmission and Distribution Service Provider (TDSP)

The local utility responsible for maintaining the poles and wires, and responding to emergencies and power outages.

Terms of Service

This is your contract and outlines your length of service, price, and other important information.

Usage Charges

The charge for your kWh usage during the service period multiplied by the cost per kWh stated in your Terms of Service Agreement.