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Many of the terms found on Electricity Facts Labels and in Terms of Service documents are in a language all their own. This list of terms, some of which are adapted from definitions provided by the Public Utility of Commission of Texas, can help you better understand industry terms as you shop for electric plans.
Also referred as the Monthly Service Fee, Customer Charge, or even Base Charge, the "Minimum Usage Charge" is a fee assessed by your Retail Electric Provider (REP) when your monthly electricity usage falls short of a minimum kWh requirement. Per-billing-cycle usage requirements are stated in Electricity Facts Labels for all electric plans.
Note: When labeled as the Monthly Service Fee, Customer Charge, or Base Charge, this fee may be charged regardless of monthly usage.
The Miscellaneous Gross Receipts Tax (MGRT) is a tax imposed on each Transmission and Distribution Utility (TDU) located in an incorporated city or town having a population greater than 1,000, according to last federal census. This is also imposed on Retail Electric Providers (REPs) making sales to customers located in an incorporated city or town with the same population standards.
The tax is computed by applying the prescribed tax rate to the utility company's gross receipts from transmitting and delivering electricity in an incorporated city or town. The tax is then applied to monthly electric bills. See below for the various rates by population: