Kilowatt kW – a measure of electric power equal to one thousand watts, showing the rate of electricity use
Kilowatt-hour kWh – a measure of energy equal to using one kilowatt for one hour, the standard billing unit
Megawatt MW – one million watts, used to describe plant size or large loads
Gigawatt GW – one billion watts, typically used for total grid capacity
Demand – the maximum rate of electricity used by a customer during a time period
Peak Demand – the highest level of demand recorded in a billing cycle or year
Load Profile – the pattern of electricity usage over time for a customer or group
Load Factor – the ratio of average load to peak load over a period, showing efficiency of usage
Base Load – the minimum constant level of electricity demand on the grid
Peak Load – the highest demand period in a day, season, or year
Transmission and Distribution Utility TDU – the regulated utility that delivers electricity through poles, wires, and meters
Retail Electric Provider REP – a company that sells electricity plans to customers in deregulated areas
Municipally Owned Utility Muni – a city-owned utility that may or may not participate in deregulation
Cooperative Co-op – a member-owned electric provider serving rural or community areas
Investor-Owned Utility IOU – a private, shareholder-owned utility that operates under regulation
ERCOT – the Electric Reliability Council of Texas, which operates the Texas electric grid and manages the wholesale market
Public Utility Commission of Texas PUCT – the regulator overseeing REPs, TDUs, and utilities in Texas
Settlement Point Price SPP – the wholesale market price for electricity at a given location on the grid
Congestion – a condition where limited transmission capacity raises costs in certain areas
Ancillary Services – support services that maintain grid reliability, such as reserves and frequency control
Balancing Authority – the operator responsible for balancing supply and demand, which is ERCOT in Texas
Nodal Market – the system in Texas where prices are set at thousands of grid points rather than one statewide price
Capacity – the maximum output a generator can produce reliably
Generation Mix – the percentage of power supplied from sources like natural gas, coal, wind, solar, or nuclear
Distributed Energy Resources DER – small-scale generation or storage located near customers, like rooftop solar or batteries
Renewable Energy Credit REC – a tradable credit proving one megawatt-hour of renewable electricity was generated
Power Purchase Agreement PPA – a long-term contract between a buyer and generator for electricity supply
Fuel Mix Disclosure – the required breakdown of a REP’s power sources given to customers
Green Power – electricity generated from renewable resources such as wind, solar, hydro, or biomass
Net Metering – a system allowing customers with generation, such as solar panels, to offset their usage by exporting power back to the grid
Advanced Meter or Smart Meter – a digital meter that records usage in short intervals and communicates data remotely
Meter Charge – a flat monthly fee for maintaining and providing the electric meter
Advanced Metering Charge – a fee supporting advanced meter deployment and systems
Delivery Charges – regulated fees from the TDU for delivering electricity, regardless of the REP chosen
Energy Charge – the portion of the bill based on electricity consumed in kilowatt-hours
Base Charge – a fixed fee applied monthly, independent of usage
Fuel Charge – a component of the bill reflecting the cost of fuel used to generate electricity
Demand Charge – a fee based on the customer’s highest demand level in a billing period
Transmission Charges – fees to recover the cost of operating the high-voltage transmission network
Distribution Charges – fees to recover the cost of local delivery infrastructure
System Benefit Fund – a former charge on Texas bills used for programs such as low-income assistance
Provider of Last Resort POLR – a designated REP required to serve customers if their provider exits the market
Switch Hold – a restriction preventing a customer from switching providers until outstanding issues are resolved
Switching Fee – a fee sometimes charged when a customer changes REPs outside of contract terms
Early Termination Fee – a penalty for ending a fixed-term electricity contract early
Fixed-Rate Plan – a retail plan where the energy price per kWh is locked for the contract term
Variable-Rate Plan – a plan where the price per kWh changes month to month
Indexed Plan – a plan tied to a published index, often wholesale or natural gas prices
Month-to-Month Plan – a contract with no long-term term, renewing monthly with variable pricing
Prepaid Plan – an electricity plan where customers pay in advance and usage is deducted daily
Budget Billing – a program allowing customers to spread payments evenly across the year to avoid seasonal bill swings
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Aggregator – an entity that combines customers to negotiate bulk power contracts
Alternative Retail Electric Provider – a REP offering competitive plans outside of traditional utilities
Ancillary Services Market – the ERCOT market where reserves, balancing, and support services are bought and sold
Automatic Meter Reading AMR – a system that collects meter data automatically without manual reads
Balancing Energy – electricity used to correct differences between scheduled and actual usage
Blackout – a complete loss of power in a geographic area
Brownout – a partial voltage reduction resulting in dimmed lights and weaker power supply
Capacity Market – a market design concept for ensuring adequate generation, though ERCOT is energy-only
Capacity Factor – the ratio of actual output over a period to the maximum possible output
Circuit – a path for electricity flow in the distribution system
Cogeneration – the simultaneous production of electricity and useful heat
Coincident Peak – a utility’s or REP’s demand at the same time as the system peak demand
Competitive Renewable Energy Zone CREZ – Texas-designated areas for renewable generation transmission buildout
Curtailment – reduction in electricity generation due to transmission or system constraints
Customer Choice – the right in deregulated Texas areas to choose an REP for electricity supply
Day-Ahead Market – ERCOT’s market where power is scheduled and priced for the next day
Deferred Payment Plan – an option allowing customers to pay bills in installments
Demand Response – programs where customers reduce usage during peak demand in exchange for incentives
Distribution System – local wires and equipment delivering electricity from substations to end-users
Electric Reliability Council of Texas ERCOT – the operator managing most of the Texas grid
Energy Efficiency – using less energy to perform the same function
Energy Only Market – ERCOT’s structure where generators are paid only for electricity produced, not capacity
Forced Outage – unexpected shutdown of generation or transmission equipment
Frequency Regulation – ancillary service balancing grid frequency close to 60 Hz
Fuel Adjustment Charge – a rate adjustment based on changing fuel costs for generation
Generator – a facility that produces electricity
Heat Rate – a measure of generator efficiency, or fuel needed per kWh generated
Hedging – financial contracts used by REPs and generators to reduce exposure to volatile wholesale prices
High-Voltage Transmission Line – power lines carrying bulk electricity long distances
Independent System Operator ISO – an entity like ERCOT that manages the transmission grid and markets
Interruptible Load – customer load that can be reduced when called upon for reliability
Interval Data – detailed usage recorded in 15-minute or hourly increments from smart meters
Invoice – the monthly bill provided to the customer
Line Losses – electricity lost as heat in transmission and distribution
Load Forecast – prediction of customer demand over future hours, days, or seasons
Locational Marginal Price LMP – price of delivering electricity at a specific grid node, reflecting energy, losses, and congestion
Market Clearing Price – the wholesale price at which supply meets demand
Market Participant – an entity such as a REP, generator, or TDU active in ERCOT
Meter Reading – collection of customer usage data from meters
Minimum Usage Fee – a charge applied if usage falls below a certain threshold
NERC – North American Electric Reliability Corporation, overseeing reliability standards across regions
Non-Coincident Peak – individual customer demand at its highest time, regardless of system peak
Obligation to Serve – requirement for POLRs or utilities to provide power to eligible customers
Outage – temporary interruption of electric service
Overhead Line – distribution or transmission line mounted on poles above ground
Peak Pricing – higher prices applied during high demand hours
Peak Shaving – reducing demand during peak periods to avoid high charges
Power Factor – a measure of how efficiently electricity is being used
Power Flow – movement of electricity through the grid
Power Pool – a regional organization coordinating wholesale power trading
Power Supply Agreement – contract between a REP and a customer for electricity service
Price to Beat – the default rate in Texas during early deregulation, phased out in 2007
Pricing Node – a specific point on the grid where prices are calculated
Priority Load – critical loads like hospitals or police stations given service preference during outages
PUC Rules Substantive Rules – the regulations governing electricity market practices in Texas
Ramp Rate – the speed at which a generator can increase or decrease output
Rate Class – customer grouping for billing based on usage patterns or size
Reactive Power – power used to maintain voltage on the grid
Reliability Must Run RMR – generation required by ERCOT for reliability even if uneconomic
Reserve Margin – excess generation capacity above forecast demand
Resource Adequacy – ensuring there are enough generation resources to meet future demand
Retail Market – the market where REPs sell power to end-use customers
Rolling Blackout – intentional short-term outages to protect grid reliability
Scarcity Pricing – ERCOT’s mechanism to raise prices when reserves are tight
Service Area – the geographic area served by a TDU or utility
Sharyland Utilities – one of the smaller Texas TDUs
Smart Grid – advanced technology that enables two-way communication and better grid management
Solar Generation – electricity produced from photovoltaic panels or solar thermal plants
Spot Market – the real-time market where electricity is bought and sold immediately
Standby Service – backup power service available for customers with self-generation
Substation – facility where voltage is stepped down for distribution to customers
Switch Date – the date when a customer officially changes REPs
System Operator – ERCOT staff who control and monitor grid reliability
Tariff – the official schedule of rates, charges, and terms filed with regulators
Thermal Generation – electricity produced from combustion of fuels such as gas or coal
Time-of-Use TOU Rate – pricing structure where kWh cost varies by time of day
Transmission Congestion Right TCR – financial instrument used to hedge congestion costs in ERCOT
Transmission Grid – high-voltage system carrying bulk electricity long distances
Transmission Service Request TSR – request to reserve transmission capacity on the system
Unbundled Service – separation of generation, transmission, and retail functions in deregulated markets
Unplanned Outage – unexpected equipment failure causing interruption of service
Voltage – the force that drives electric current through wires
Watt W – the base unit of power, equal to one joule per second
Wholesale Market – the market where power is bought and sold between generators and REPs
Wind Generation – electricity produced from wind turbines in Texas wind farms
Winter Storm Uri – the February event that led to massive outages and market reforms
Zone – a regional pricing area within ERCOT