Texas Electricity Glossary: 25 Common Terms Explained

A quick reference for plan documents, charges, timelines, and who handles what—written in plain language.

Glossary

• EFL (Electricity Facts Label): A standardized document that summarizes a plan’s key details: term length, energy charges, delivery charges, fees, and disclosures.
• REP (Retail Electric Provider): A company that sells electricity plans to customers in deregulated markets.
• TDU (Transmission and Distribution Utility): The utility that maintains poles, wires, and meters and restores power after outages.
• ERCOT: The Electric Reliability Council of Texas; operates the electric grid and wholesale market for most of Texas.
• Fixed-rate plan: A plan where the energy charge is intended to remain the same during the contract term (see EFL).
• Variable plan: A plan where the energy charge can change monthly (see EFL).
• Contract term: Length of your agreement (e.g., 6, 12, 24 months), listed on the EFL.
• Early termination fee: A fee that may apply if you end a contract before its term ends; see EFL.
• TDU delivery charges: Charges set by your local utility for delivering power; separate from energy charges.
• kWh (kilowatt-hour): A unit of energy used to measure electricity consumption.
• Base charge: A fixed amount that may apply each billing cycle, regardless of usage; see EFL.
• Renewable content: The percentage of electricity generated from renewable sources; shown on the EFL.
• Deposit: An amount that may be required during enrollment, depending on eligibility criteria.
• AutoPay / Paperless: Optional account features that may be available for some plans; review plan terms.
• Move-in (start service): Begin service at a new address.
• Transfer: Move an existing plan to a new address when eligible.
• Switch: Change from one REP to another.
• Meter read: A record of your electricity usage; may be used to start or end service or to switch providers.
• Outage: A power interruption handled by your local TDU.
• PUCT: Public Utility Commission of Texas; state regulator for electricity and other utilities.
• EFL usage examples: Illustrative costs at 500/1000/2000 kWh; your actual usage and costs may differ.
• Your Rights as a Customer (YRAC): Required document explaining customer protections and information.
• Terms of Service (TOS): Contractual terms that govern your plan.
• Enrollment confirmation: Email or page that shows your plan details and expected start date.
• Grace period: A window some contracts include for cancellation without an early termination fee; see TOS/EFL.

Next Steps

When comparing plans, always open the EFL and Terms of Service. Review delivery charges, contract term, and any fees before enrolling.

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