Electricity Terms Glossary

The standard unit for measuring electricity consumption. One kWh equals using 1,000 watts for one hour. This is what you're billed for on your electric bill.

A unit of electrical power measuring capacity at any moment. Think of it as speed - how fast electricity is being used right now.

Electrical pressure that pushes current through wires. Standard home outlets are 120V; dryers and ovens use 240V.

A measure of how much electrical current flows through a wire. Higher amps mean more electricity moving through the system.

A measure of air conditioner efficiency. Higher SEER numbers mean more efficient cooling. Modern standards require SEER 14+; high-efficiency units reach SEER 20+.

The yellow labels on appliances showing estimated annual energy cost and efficiency compared to similar models. Required by FTC on major appliances.

Electricity consumed by devices when they're turned off but still plugged in. TVs, gaming consoles, and chargers are common culprits.

A measure of insulation's resistance to heat flow. Higher R-values mean better insulation. Recommended values vary by climate zone.

An efficient HVAC system that moves heat rather than generating it, providing both heating and cooling. Can be 2-3x more efficient than traditional systems.

A professional assessment of your home's energy efficiency, identifying where you're losing energy and recommending improvements. Many utilities offer free or discounted audits.

A joint EPA/DOE program certifying energy-efficient appliances and products. ENERGY STAR products use 10-50% less energy than standard models.

A diagnostic test that measures how airtight your home is by using a powerful fan to pull air out and measure leakage. Used during energy audits.

An electronic device that controls motor speed by varying electrical frequency, significantly reducing energy consumption for pumps, fans, and HVAC systems.

A market structure that separates electricity generation from delivery, allowing customers to choose their electricity supplier while the utility still delivers power.

Your ability to select a competitive electricity supplier instead of paying your utility's default rate. Also called retail choice or customer choice.

Competitive Retail Electric Service provider. Ohio's term for companies licensed to sell electricity to consumers in the deregulated market.

Electric Generation Supplier. Pennsylvania's term for companies licensed to sell electricity to consumers in the deregulated market.

A company that sells electricity in deregulated markets. Called CRES in Ohio, EGS in Pennsylvania, and Competitive Supplier in Massachusetts.

The electricity rate you receive if you don't choose a competitive supplier. Also called SSO in Ohio or Basic Service in Massachusetts.

Ohio's term for the default electricity supply rate from your utility. This is what you pay if you don't choose a competitive supplier.

Massachusetts's term for the default electricity supply rate from your utility. The rate changes every 6 months based on wholesale market prices.

When your city or county negotiates electricity rates for all residents at once, using collective buying power to get better prices.

A type of municipal aggregation where residents are automatically enrolled in the program unless they actively choose to leave.

Where competitive suppliers sell electricity directly to consumers. This is where you shop for electricity rates.

Where power generators sell electricity to suppliers and utilities. Consumers don't participate directly but wholesale prices affect retail rates.

A market where power plants bid for payments to be available during peak demand. PJM runs annual capacity auctions three years in advance.

Quarterly competitive bidding process where suppliers compete to provide default electricity for utility customers who don't choose a supplier.

A program where local governments negotiate electricity rates for residents. Similar to municipal aggregation but often with more renewable energy options.

PUCO's official electricity rate comparison tool for Ohio consumers. Lists all CRES providers, current rates, and contract terms in a standardized format.

Pennsylvania's official electricity shopping website operated by the PA PUC. Allows consumers to compare EGS rates by ZIP code.

A third party that shops for electricity rates on behalf of consumers or businesses. May receive commission from suppliers. Ask about compensation and compare to direct rates.

Massachusetts term for electricity purchased from a competitive supplier rather than the utility's Basic Service. Compare rates carefully - Basic Service is often cheaper.

In Texas, the company that owns and maintains the power lines, transformers, and meters that deliver electricity to your home. TDUs handle outages, meter reading, and physical connections—but you cannot choose your TDU.

In Texas, the company you choose to buy electricity from. REPs set your rate, send your bill, and handle customer service. You can switch REPs at any time to get better rates or service.

The official Texas electricity shopping website operated by the PUCT. Power to Choose lists all available plans from licensed REPs without paid placements, making it an unbiased comparison tool.

The restructuring of the Texas electricity market under Senate Bill 7 (2002) that separated power generation, transmission, and retail sales—allowing consumers to choose their electricity provider.

Your utility's default electricity supply rate. Compare supplier offers against this number to see if you'll save money by switching.

An electricity plan that locks your per-kWh price for the contract term. Protects against price increases but may include early termination fees.

An electricity plan where your rate adjusts monthly based on market conditions. Offers flexibility to switch anytime without penalties but carries price volatility risk.

An electricity rate tied to a market index (like wholesale prices) plus a fixed margin. Your rate moves with the market but with a predictable formula.

A discounted rate offered for an initial period (often 1-3 months) before jumping to regular pricing. Read the fine print to understand the full-term cost.

A rate structure charging different prices based on when you use electricity. Typically cheap overnight and on weekends, expensive during peak afternoon hours.

A rate structure where the price per kWh changes based on how much you use. Often higher rates kick in after you exceed baseline usage levels.

The portion of your electricity rate that covers electricity production costs, separate from delivery charges. This is the part you can shop for in deregulated markets.

Unit measuring the cost of having power plant capacity available for one day. Used in PJM capacity auctions to ensure enough power plants exist to meet peak demand.

The price set by the most expensive power plant needed to meet demand at any moment. This is how wholesale electricity prices are determined.

The mild weather periods between summer and winter (typically spring and fall) when electricity demand is lowest. Often the best time to lock in rates.

A maximum limit on how high a variable rate can go. Some variable plans include price caps for protection against extreme market spikes.

The rate you're charged after your fixed contract expires if you don't switch or renew. Often 30-50% higher than competitive rates. Watch your contract end dates.

A guarantee that your electricity rate won't change for the contract duration. The main benefit of fixed-rate plans.

An electricity service where you pay in advance for power rather than receiving a monthly bill. No credit check or deposit required, making it accessible for customers with credit challenges or switch holds.

Discounts that only apply when your usage reaches certain thresholds (like 1000 or 2000 kWh). These credits can make advertised rates misleading if your actual usage differs.

Texas electricity plans offering free or deeply discounted power during certain hours (typically 8PM-6AM) or on weekends. Best for customers who can shift usage to free periods.

The electricity generation portion of your bill - this is what you shop for when comparing suppliers in deregulated markets. Your utility handles delivery; suppliers compete on supply.

The infrastructure portion of your electric bill covering power lines, transformers, and maintenance. These charges stay the same regardless of your supplier - you cannot shop for delivery.

The portion of your bill covering electricity generation and purchasing. This is what you shop for when comparing suppliers in deregulated markets.

The portion of your bill paying for local utility infrastructure - wires, transformers, poles, and maintenance. These charges stay the same regardless of your supplier.

Charges covering the cost of moving electricity from power plants through high-voltage lines to local distribution systems.

A fixed monthly fee for having electricity service connected, regardless of how much you use. Covers basic account and infrastructure costs.

Additional charges on your bill funding specific programs like energy efficiency initiatives, renewable energy requirements, or infrastructure upgrades.

Charges based on your highest power draw during a billing period, common for commercial customers. Designed to recover costs of maintaining capacity for peak usage.

The standard supply rate before any additional fees, riders, or surcharges are added.

Your complete per-kWh cost combining supply, delivery, and all fees. This is the number that determines what you actually pay.

Adding unauthorized charges to a utility bill. Review your bill regularly and dispute any charges you didn't authorize.

Utility charges you can avoid by switching to a competitive supplier. Non-bypassable charges (like distribution) stay the same regardless of supplier.

A floor charge applied when your electricity usage falls below a certain threshold. Some supplier plans include these even if you use very little power.

The portion of your Texas electricity bill that covers the actual cost of electricity generation. This is the competitive part you can shop—separate from TDU delivery charges.

A flat monthly fee on your Texas electricity bill, regardless of how much electricity you use. Typically $5-15 from your REP plus TDU base charges.

Public Utilities Commission of Ohio. The state agency that regulates electric utilities, licenses competitive suppliers, and enforces consumer protections in Ohio.

An independent state agency representing residential utility customers in PUCO proceedings and advocating for consumer interests in Ohio.

Pennsylvania Public Utility Commission. The state agency overseeing utilities and competitive suppliers, enforcing rules like the $50 residential ETF cap.

Massachusetts Department of Public Utilities. The state agency regulating electricity suppliers and distribution companies in Massachusetts.

The regional transmission organization managing the electrical grid for Ohio, Pennsylvania, and 11 other states. Conducts capacity auctions affecting wholesale electricity prices.

The regional transmission organization operating the electrical grid for Massachusetts and the New England states. Manages wholesale electricity markets.

Electric Reliability Council of Texas. The organization managing the Texas electrical grid, which operates independently from the rest of the U.S. and serves about 90% of Texas electricity customers.

An independent state agency representing residential and small business utility customers in PA PUC proceedings.

The PA PUC division that handles consumer complaints. File informal complaints here before escalating to formal proceedings.

A first-level dispute resolution process with your state utility commission. Most issues are resolved at this stage without formal hearings.

A legal proceeding before your state utility commission, typically used when informal resolution fails. May involve hearings and written decisions.

A formal regulatory proceeding where a utility requests approval to change its rates. The public can participate by submitting comments.

The number of complaints filed against a supplier relative to their customer count. Use this metric when evaluating supplier reliability.

The state agency that regulates the Texas electricity market. PUCT oversees REPs, approves rate structures, handles consumer complaints, and operates the Power to Choose comparison website.

The February 2021 winter storm that caused widespread power outages across Texas, exposing vulnerabilities in the ERCOT grid and leading to significant regulatory reforms.

The process of signing up with a new electricity supplier. Your new supplier handles notifying your utility; there's no service interruption.

Changing from one electricity supplier to another. The switch typically takes one to two billing cycles to complete.

A penalty charged if you cancel a fixed-rate contract before its term ends. Pennsylvania caps residential ETFs at $50; Ohio has no cap.

A 3-day window after signing a contract where you can cancel without penalty. Federal law requires this for door-to-door sales; many states extend it to all enrollments.

A contract clause that automatically extends your agreement at the end of the term unless you actively opt out. Watch for notices and mark your calendar.

The duration of your electricity supply agreement, commonly 6, 12, 24, or 36 months. Longer terms often mean lower rates but less flexibility.

A document summarizing all contract terms including rate, term length, fees, and renewal terms. Suppliers are legally required to provide this before enrollment.

The illegal practice of switching a customer's electricity supplier without their consent. If you're slammed, contact your utility and file a complaint with your state regulator.

Federal Trade Commission rule giving you 3 business days to cancel any purchase made at home (including door-to-door electricity sales) without penalty.

A local permit required for door-to-door sales. Legitimate energy salespeople should have this and a state license. Ask to see both.

A legal document giving a company permission to make electricity supplier changes on your behalf. Required for programs like Smart Enroll.

A standardized disclosure document showing a plan's rate at 500, 1000, and 2000 kWh, contract terms, and fee details. Required in Texas for all electricity plans.

A telecom protocol that verifies caller ID information isn't spoofed. Helps identify legitimate calls from utilities versus scam calls.

The date your electricity supply agreement ends. Mark it on your calendar - you should shop for a new rate 2-4 weeks before this date.

A required disclosure document that Texas REPs must provide to all customers. YRAC explains your rights regarding billing, deposits, disconnection, and complaint procedures.

The detailed contract between you and your Texas REP. Contains early termination fees, auto-renewal clauses, payment terms, and other conditions not shown on the EFL.

A digital meter that records electricity usage in near real-time and communicates data wirelessly. Enables time-of-use rates and detailed usage tracking.

Advanced Metering Infrastructure. The network of smart meters, communication systems, and data management software that enables detailed energy monitoring.

When your utility uses historical averages to bill you because an actual meter reading isn't available. You'll see a true-up on a later bill.

A billing arrangement that credits solar panel owners for excess electricity sent back to the grid. Your meter runs backward when you produce more than you use.

Programs that pay customers to reduce electricity usage during peak demand periods. The utility texts you, you turn off the AC for an hour, you get a bill credit.

Your typical electricity usage pattern over time, showing when and how much power you use. Smart meters enable detailed load profile analysis.

Your highest instantaneous power draw during a billing period. Commercial customers often pay demand charges based on this peak.

Your typical electricity consumption pattern before making changes. Useful for measuring savings from efficiency improvements or solar installation.

A programmable thermostat that learns your schedule and can be controlled remotely. Can reduce heating and cooling costs by 10-15% through optimized scheduling.

A dedicated 24-volt power wire connecting smart thermostats to HVAC systems. Many older homes lack this wire, which can cause compatibility issues or require add-on power adapters.

A smart thermostat feature that uses your smartphone's location to automatically adjust temperature when you leave or approach home, optimizing energy based on occupancy.

A device that monitors and limits electricity usage during peak periods to reduce demand charges. Prevents multiple high-draw equipment from running simultaneously.

The official online portal where Texas electricity customers can access their detailed energy usage data from their smart meter. Available at SmartMeterTexas.com.

Tradable certificates representing the environmental attributes of one megawatt-hour of renewable electricity generation. Used to track and verify green energy claims.

An electricity plan sourcing power from renewable sources or purchasing RECs to match your consumption with renewable generation.

Credits that fund environmental projects to compensate for carbon emissions. Different from RECs - offsets address emissions while RECs address generation source.

An electricity plan that offsets all its carbon emissions through renewable energy credits or carbon offset purchases.

A shared solar installation that lets you subscribe and receive bill credits without installing panels on your own roof. Useful if your roof won't work for solar.

The rate utilities pay you for excess solar electricity sent back to the grid. Varies by state and utility - check before installing panels.

Alternative Energy Portfolio Standard. State requirements that utilities source a certain percentage of electricity from renewable sources.

Independent third-party verification of renewable energy claims. If a plan has Green-e certification, the green claims are legitimate and audited.

PJM's system for tracking and verifying renewable energy certificates. Ensures RECs aren't double-counted when suppliers make green claims.

The year a Renewable Energy Certificate was generated. Newer vintages are generally more valuable and better demonstrate current environmental impact.

The concept that purchasing green energy should fund NEW renewable development, not just take credit for existing projects. A key factor in genuine green energy claims.

The combination of sources used to generate electricity - coal, natural gas, nuclear, wind, solar, etc. Affects both price and environmental impact.

A tradable certificate representing one megawatt-hour of solar-generated electricity. Distinct from general RECs, some states have separate SREC markets with higher values.

Texas electricity plans that pay you for excess solar energy your panels export to the grid. Buyback rates vary widely between REPs—some offer near-retail rates, others offer wholesale.

Low Income Home Energy Assistance Program. Federal funds helping qualifying households pay heating and cooling bills. Apply through your local community action agency.

Ohio program capping electricity bills at a percentage of household income for qualifying customers. You pay based on what you earn, not what you use.

Pennsylvania program offering reduced electricity rates for income-eligible customers. Each utility has its own CAP program with different eligibility requirements.

Payment plan spreading your annual electricity costs into equal monthly payments. No more $300 summer bills followed by $80 winter bills.

A structured plan to pay off past-due electricity bills in installments while maintaining service. Contact your utility before disconnection to set one up.

Programs that eliminate past-due electricity balances if you maintain regular payments for a set period. Don't let pride keep you from asking.

Free insulation, air sealing, and equipment upgrades for qualifying low-income homes to reduce energy costs. Federally funded through the Department of Energy.

A small surcharge on everyone's bill funding low-income assistance programs. You'll see it as a line item even if you don't qualify for assistance.

State programs providing financial help with home heating costs, including electricity for heat. Part of LIHEAP funding in most states.

State rules prohibiting utility disconnections during cold weather months for certain customers. Ohio runs November 1 through April 15.

The company that owns and operates the infrastructure delivering electricity to your home - poles, wires, transformers. You can't choose your EDC; it's assigned by location.

The geographic area where an electric utility operates. Your service territory determines which utility delivers your electricity and which aggregation programs you're eligible for.

The pricing category you're assigned based on your usage type - residential, commercial, or industrial. Most readers are residential.

Your unique identifier for billing and enrollment purposes. You'll need this when switching suppliers or accessing your account online.

The physical location receiving electricity service. Important for enrollment since one customer can have multiple service addresses.

The unique identifier for the specific device measuring your electricity consumption. Sometimes needed for enrollment or account verification.

The connection from utility lines to your building. The utility is responsible for the wires up to your meter; you're responsible for wiring inside.

Equipment that steps down high-voltage transmission power to the 120/240 volts your home uses. The green boxes or pole-mounted cylinders in your neighborhood.

Any interruption of electricity service, whether from storms, equipment failure, or planned maintenance. Report outages to your utility, not your supplier.

Physical limitations on how much electricity can flow through certain parts of the grid. Constraints can cause regional price differences.

A refundable deposit required by utilities for new customers, often based on credit evaluation. Typically returned after 12-24 months of on-time payments.

A review of your credit history by a utility when starting new service. Poor credit may require a higher security deposit.

A building with one electricity meter for all units. The landlord pays the utility and includes costs in rent. Tenants can't choose their own supplier.

A building where each unit has its own electricity meter. Tenants establish their own accounts and can choose their own supplier.

A unique identifier for your electricity delivery point used by Massachusetts utilities, particularly Eversource. Found on your bill.

A 2-4 character identifier used by Massachusetts utilities (Eversource and National Grid) to verify customer identity during enrollment.

AEP Ohio's 17-digit account number format. Starts with 000406210 for Columbus Southern territory or 001400607 for Ohio Power territory.

Utility investments in upgrading electrical infrastructure with digital technology, smart meters, and renewable integration capabilities.

A required warning before your utility can shut off power. Ohio requires 14 days notice; Pennsylvania requires 10 days. Contact your utility immediately if you receive one.

An electric utility owned and operated by a city or town. Examples include Cleveland Public Power and Columbus Division of Power. Often don't participate in retail choice.

A for-profit utility company owned by shareholders. AEP Ohio, Duke Energy, and FirstEnergy are investor-owned utilities. These are the utilities that participate in retail choice.

A not-for-profit utility owned by the customers it serves, common in rural areas. Members vote on leadership. Generally don't participate in retail choice.

A situation where electricity demand approaches or exceeds available supply. PJM and ISO-NE may request conservation or activate demand response during emergencies.

Intentional, temporary power outages rotated across different areas to prevent a complete grid collapse during emergencies.

A restriction on an electric meter that prevents new service from being activated. Switch holds are typically placed due to unpaid bills or meter tampering by a previous occupant.

A unique 17-22 digit number assigned to each electric meter in Texas. Your ESI ID identifies your specific service location and is required when switching REPs or starting new service.

A form used to prove you are a new occupant at an address with a switch hold. Filing this statement with required documentation allows you to get electricity service even if the previous tenant left unpaid bills.

The largest TDU in Texas, serving the Dallas-Fort Worth metroplex and surrounding areas. Oncor delivers electricity to over 10 million customers but does not sell electricity directly.

The TDU serving the Greater Houston area. CenterPoint owns the power lines and meters but does not sell electricity—you choose your REP separately.

The TDU serving South and West Texas, including Corpus Christi, the Rio Grande Valley, and parts of West Texas. AEP Texas operates two service territories: AEP Texas Central and AEP Texas North.

A TDU serving parts of Central and North Texas, including areas around Austin, Leander, and Midland-Odessa. Smaller than Oncor or CenterPoint but covers significant territory.