Public Utility Brokers FAQ: Glossary of Industry Terms

Affiliated Retail Electric Provider: A Retail Electric Provider (REP) that is owned, and now independently operated, by the original electric utility for that area such as TXU or Reliant.
Aggregator: A company that is registered with the Public Utility Commission that negotiates on behalf of and joins two or more customers to purchase electricity from retail electric providers in mass. Aggregators can not take title of electricity.
Band and Swing: A usage tolerance set by a REP in the Terms of Service document that typically refers to a customer's historical usage plus or minus a predetermined percentage for variance.
Broker: A company or an individual that facilitates the sale and/ or purchase of electricity between businesses and Retail Electric Providers. There are currently no laws requiring Brokers to file with the Public Utility Commission.
Consultant: Similar to the role of a Broker, Consultants are companies or an individual that facilitates the sale and/ or purchase of electricity between businesses and Retail Electric Providers. There are currently no laws requiring Consultants to file with the Public Utility Commission and therefore the PUC has no authority to govern over their actions.
Demand: The amount of electricity used at any given instant or averaged over a designated period of time. Demand is usually in measured in kilowatts or Megawatts. The Peak Demand is the highest 15 or 30 minute recorded demand period over 12-months.
Early Termination Penalty: A defined amount as described in a customers Terms of Service in which the REP will charge the customer in the event the customer defaults on their contractual obligation.
Electricity: The free flow of electrons. Electric generators convert mechanical energy into electric energy. Electrical energy is the generation or use of electric power over a period of time, usually expressed in kilowatt-hours (kWh) or megawatt-hours (mWh).
Electricity Facts Label (EFL): A standardized format sheet of information required by the PUC that provides customers with disclosure information on a Retail Electric Provider's prices, contracts, sources of power generation and emissions. This information will give you a better comparison of electricity offers from competing Texas Electric Providers. This EFL is only required to be given to Residential and small commercial customers (less than 50 peak kW).
Electric Reliability Council of Texas (ERCOT): The corporation comprised and governed by a board of directors from investor and municipally own electric utilities, generators, independent members and consumers to maintain and ensure the reliability of the power grid that operates in the State of Texas. They make sure you get electricity into your home or business. ERCOT is also the entity that handles all switch requests.
ESI I.D. (Electric Service Identifier): A unique number in the ERCOT market given to an electricity delivery point by the TDSP. This number is required to be displayed on your electricity bill.
Fixed Price Product: A retail electric product with a term of at least three months for which the price (including recurring charges) for each billing period of the contract term is the same throughout the contract term, except that the price may vary from the disclosed amount solely to reflect actual changes in the TDU charges, changes to the ERCOT or Texas Regional Entity administrative fees charged to loads or changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP's control.
Generation: The production of electricity. Electricity in Texas is generated from natural gas, nuclear, coal, wind, water, and solar energy.
Heat Rate: A type of Indexed Price Product that is tied to a generators efficiency rate and the natural gas market. Typically a Heat Rate product would consist of a Heat Rate times natural gas prices plus a Retail Adder.
Indexed Product: A retail electric product for which the price, including recurring charges, can vary according to a pre-defined pricing formula that is based on publicly available indices or information and is disclosed to the customer, and to reflect actual changes in TDU charges, changes to the ERCOT or Texas Regional Entity administrative fees charged to loads or changes resulting from federal, state or local laws or regulatory actions that impose new or modified fees or costs on a REP that are beyond the REPs control. An indexed product may be for a term of three months or more, or may be a month-to-month contract.
Kilowatt-Hour (kWh): A measurement of energy equal to one kilowatt (kW) of power for a one-hour duration. This is the amount of electricity providers typically charge you on your bill for each billing period.
Local Wires Company (TDSP - Transmission and Distribution Service Provider): Transmits and delivers the electricity to a customer's home or business along the poles and wires. This company is responsible for maintenance and repair of these poles and wires and regulated by the PUC.
Out of Cycle Meter Read: A request to have the servicing TDSP read your electricity meter before your next scheduled meter read date. This is typically done at the customers request to expedite a switch request and typically can take around ten days.
Mark to Market: The difference between what a contract was sold for and current market value.
Market Clearing Price For Energy (MCPE): The spot price of energy in any given fifteen minute interval as determined by ERCOT. This price can be extremely volatile and is typical determined by overall grid demand.
Move In: A request for service to a new premise where a customer of record is initially established or switch to an existing premise where the customer of record changes.
Municipally or City Owned Utility: A non-profit electricity provider that is owned and operated by the municipality it serves. Texas city-owned utilities may decide whether or not their customers will have a choice of REPs. Customers should contact their electric cooperative or city utility for more information.
Provider of Last Resort: The Provider of Last Resort becomes your provider when a Retail Electric Provider exits the market for any reason. If this happens, it is recommended that you establish service with a new Retail Electric Provider as soon as possible as POLAR rates are typically very high.
Public Utility Commission of Texas (PUC): The state agency that is responsible for the regulation and oversight of electric services in Texas. The Public Utility Commission regulates the delivery of electricity to ensure the safety and reliability of your service. The Public Utility Commission of Texas governs and oversees REP's and Aggregator's actions. Currently the PUC has no governing authority over Brokers or Consultants.
Renewable (Green) Energy: Electricity that is made from renewable resources from the environment, such as wind, water, or solar.
Retail Adder: An amount that a REP may charge in addition to any other charges set forth in the Terms of Service Document typically found in Index Price Products
Retail Electric Provider: A company that sells electricity to customers. All Retail Electric Providers must be certified to do business by the Public Utility Commission of Texas and obey all rules that PUC sets forth.
Small Commercial Customer: A non-residential customer that has a peak demand of less than 50 kilowatts during any 12-month period, unless the customer's load is part of an aggregation program whose peak demand is in excess of 50 kilowatts during the same 12-month period
Terms of Service: Contract between a Retail Electric Provider and a customer that outlines fees, length of service and other important information.
Texas Electric Choice: The public education program managed by the Public Utility Commission to inform Texans about their options in a competitive retail electric market.
Usage: The measurement of electricity used during the billing cycle listed in kilowatt-hours (kWh) on your electric bill as kWh.
Variable Price Product: A retail product for which price may vary according to a method determined by the REP, including a product for which the price, can increase no more than a defined percentage as indexed to the customer's previous billing month's price. For residential customers, a variable price product can be only a month-to-month contract.
Your Rights As a Customer Disclosure (YRAC): A document that informs you of your rights as mandated by the PUC. Retail Electric Providers must provide Residential and small commercial customers with this disclosure.

Public Utility Brokers: So Many Choices, One Simple Answer Glossary of Texas Deregulated Power Market Terms

FAQ

Glossary of Industry Terms