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Because you deserve to understand what you’re paying for, here’s a plain-English glossary of the Texas electricity terms you’ll see on plans, bills and contracts. Bookmark it for the next time a bill makes no sense.
Key takeaways
- kWh measures how much electricity you use.
- Your bill pays a provider (REP) for the electricity and a utility (TDU) for delivery.
- The EFL is the official label that shows a plan’s real price at different usage levels.
- Bill credits, base charges and minimum-usage fees change what you actually pay.
Usage and pricing terms
kWh (kilowatt-hour)
The unit you’re billed in. Running a 1,000-watt appliance for one hour uses 1 kWh. More kWh means a higher bill.
Energy charge (¢/kWh)
What your provider charges for the electricity itself. It’s only part of the price. Delivery charges and fees get added on top.
Average price per kWh
The all-in price shown on a plan’s EFL at 500, 1,000 and 2,000 kWh. It includes energy charges, delivery charges, base charges and credits, which makes it the best number for comparing plans.
Base charge
A flat monthly fee from your provider that you pay no matter how much electricity you use.
Minimum-usage fee
An extra fee some plans charge if you use less than a set amount in a month.
Bill credit
A discount applied only when your usage lands in a certain range. It’s what makes some advertised rates look so low. Here’s the catch.
Who’s who
REP (Retail Electric Provider)
The company you choose and pay, like TXU, Reliant or Gexa. It sells the electricity and sends your bill.
TDU (Transmission and Distribution Utility)
The company that owns the poles and wires in your area, like CenterPoint or Oncor. It’s assigned by address. See the TDUs by region.
TDU delivery charges
Regulated fees your utility charges to deliver power, passed through on your bill. Learn more.
ERCOT
The Electric Reliability Council of Texas, which manages the grid for most of the state. Here’s what its alerts mean.
PUCT
The Public Utility Commission of Texas, the state agency that regulates providers and utilities.
Plan and contract terms
EFL (Electricity Facts Label)
The standardized label every plan must have, showing prices, fees and terms. How to read one.
Contract term
How long your price lasts: commonly 6, 12, 24 or 36 months. Longer terms bring stability, shorter terms bring flexibility.
Fixed, variable and indexed rates
A fixed rate keeps the provider’s energy price the same for the term. A variable rate can change month to month. An indexed rate follows a market price.
Early termination fee (ETF)
What you owe if you leave a contract early. Moving to a new address is usually an exception with proof of the move.
ESI ID
The unique number tied to your meter and address, used to set up or switch service.
Helpful official resources: Public Utility Commission of Texas · ERCOT
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Frequently asked questions
What is the most important number on a Texas electricity plan?
The average price per kWh on the EFL at the usage level closest to yours. It includes delivery charges, credits and fees.
What’s the difference between a REP and a TDU?
The REP sells you electricity and sends your bill. The TDU delivers the power and maintains the local grid.
Is a fixed-rate plan always fixed?
The provider’s energy price is fixed for the term, but some plans can pass through changes in regulated delivery charges. Check your EFL.
Super helpful. TY