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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.
Charges billed by the Transmission and Distribution Utility (TDU) that are “passed through” to the bill you receive from your Residential Electric Provider. Pass-through charges can be recurring (like monthly standard delivery charges) and non-recurring (for services like connecting, disconnecting or re-connecting electric service). Pass-through charges may be itemized separately.
(See also: TDU Charges)
Electric service for which the customer pays in advance. It can be based on smart meter data or estimated future electricity usage.
Established by the Public Utilities Commission of Texas (PUCT), the Provider of Last Resort or "POLR" is a designated list of back-up electric service providers in each service area of Texas that allows competition. POLR service serves as a safety net for customers whose chosen provider is unable to continue service. For more information, visit the PUCT.
A fee assessed to recover the statutory costs for administering the Public Utility Regulatory Act (PUCA). The PUCA is currently set at .1667% of a customer’s total bill for energy service for a given billing cycle (including all TDU/TDSP fees), before sales tax.
The state agency responsible for regulating and overseeing electric and local telecommunication services Texas. Through this governance, the commission implements legislation and assists in resolving consumer complaints, among other activities.