Glossary

Affiliated Retail Electric Provider
The Affiliate Retail Electric Provider was part of the original electric company that generated and sold electricity in your area. Now, the Affiliate Retail Electric Provider only sells electricity and provides customer service. It does not operate or maintain distribution and transmission wires.

Aggregator
An entity registered with the Public Utility Commission that brings together a group of customers to buy electricity in bulk.

City-Owned Utility
A non-profit utility that is owned and operated by the city it serves. In Texas, city-owned utilities may opt into the competitive retail electric marketplace. See also "Municipally Owned Utility."

Commercial Customer
One of three commonly used designations for classes of customers. The others are residential and industrial. Commercial customers are not involved in manufacturing. Examples of commercial customers are retail stores, restaurants and educational institutions.

Competitive Retail Electric Provider
A Retail Electric Provider that is certified by the PUC and competes for your business by offering lower prices, renewable energy options, added customer service benefits or other incentives.

Cramming
Adding charges to a bill without a customer’s approval. This practice is illegal and penalties are enforced by the PUC.

Deregulation
Removal or relaxation of regulations or controls governing a business or service operation like utilities.

Electric Reliability Council of Texas (ERCOT)
The corporation that administers and maintains the reliability of the state's electrical power grid. When you choose a new Retail Electric Provider, this group will send you a postcard confirming your switch from one Retail Electric Provider to another.

Electricity Facts Label
An information sheet required by the PUC that provides customers with standardized information on a Retail Electric Provider’s prices, contracts, sources of power generation and emissions. It allows customers to make an "apples-to-apples" comparison of Retail Electric Provider offers.

Generation
The production of electricity. In Texas, electricity is produced by a number of methods, including natural gas, coal, nuclear power, wind, water and solar energy.

Industrial Customer
One of three commonly used classes of customers. The others are commercial and residential. Industrial customers typically have the highest demand for electricity. Examples of industrial customers are a factory or manufacturing plant.

Kilowatt-Hour (kWh)
A unit of energy equivalent to one kilowatt (kW) of power expended for one hour of time. The amount of electricity you use each billing period is expressed in terms of a kilowatt-hour, and is noted on your bill.

Local Wires Company
The company that transmits and delivers electricity to a customer's home or business along the poles and wires (formerly a local electric utility). This company is still responsible for maintenance and repair of these poles and wires. The local wires company does not offer preferential treatment to any customer over another when performing switches or restoring power after an outage.  See Transmission & Distribution Service Provider (TDSP).

Municipally Owned Utility ("Muni")
A non-profit utility that is owned and operated by the municipality it serves. In Texas, municipally owned utilities may opt into the competitive retail electric marketplace. See also "City-Owned Utility."

Peak Demand
The highest 15- or 30-minute demand recorded during a 12-month period.

Prepaid Electric Service
Electric service for which the customer pays in advance for electricity, whether via a special meter or estimated future electricity usage, and for which electric service is provided on a "pay-as-you-go" basis.

Provider of Last Resort (POLR)
The Provider of Last Resort serves as the "back-up" provider when a Retail Electric Provider leaves the market for any reason. If this happens, customers may switch back to the Affiliate Retail Electric Provider or choose another competitive Retail Electric Provider offering electric service in their area.

Public Utility Commission of Texas (PUC)
The state agency that is responsible for the regulation and oversight of electric and local telecommunication services in Texas. Under Electric Choice, the PUC regulates the delivery of electricity and enforces customer protections.
 
Renewable Energy
Electricity that is made from "environmentally friendly" fuel resources, such as wind, water, biomass or solar. Sometimes referred to as "green" energy. Information on a Retail Electric Provider's generation sources can be found on its Electricity Facts Label.

Residential Customer
One of three commonly used customer classes. The other two are commercial and industrial. Residential customers include private households that utilize energy for such needs as heating, cooling, cooking, lighting and small appliances.

Restructuring
The reorganization of traditional monopoly electric service to allow operations and charges to be separated or "unbundled" into generation, transmission and distribution and retail services. This allows customers to buy retail electric service from competing providers.

Retail Electric Provider (REP)
A company that sells electricity to customers. All Retail Electric Providers must be certified to do business by the Public Utility Commission of Texas.

Rural Electric Cooperative (Co-op)
A customer-owned electric utility that distributes electricity to members and that receives lower-cost financing through the federal government. In Texas, co-ops can choose to opt into the competitive retail market.

Slamming
Switching electric service without a customer's approval. This practice is illegal and penalties are enforced by the PUC.
 
Terms of Service
A contract between a Retail Electric Provider and a customer that outlines fees, length of service and other important information.

Transmission and Distribution Service Provider (TDSP)
The company that transmits and delivers electricity to a customer's home or business along the poles and wires (formerly a local electric utility). This company is still responsible for maintenance and repair of these poles and wires  The TDSP are the companies to call in case of an outage NOT your Retail Electric Provider (REP).  The local wires company does not offer preferential treatment to any customer over another when performing switches or restoring power after an outage.

In case of a power outage, contact your area Transmission & Distribution Service Provider (TDSP):

Oncor—TXU service area: 888-313-4747
Centerpoint Energy—Reliant service area: 800-332-7143
Texas New Mexico Power—First Choice service area: 866-866-7456
AEP Central—CP&L service area: 866-223-8508
AEP North—WTU service area: 866-223-8508

Usage
This is the amount of electricity you used during the billing period listed in kilowatt-hours (kWh). This will be listed on your electric bill as kWh used.

Source: PUC