Energy made simple

Understand your Texas energy plan — from kilowatts to contracts.

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Things You Should Know

So every Texan can talk like a pro

Your simple guide to Texas energy terms and what they mean.
Learn these key electricity plan terms and take control of your energy choices.

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Energy Terms Glossary

Average Price

The total cost of electricity—including all charges and fees—averaged over a set usage level (usually 2,000 kWh per month). Helps you compare plans apples-to-apples.

Billing Cycle

The time period (typically a month) when your electric use is measured for billing. Think of it as your energy “month-in-review.”

Contract Rate

The fixed rate you lock in when you sign up. It stays the same through your contract—no surprises.

Deregulated Market

In Texas, you have the power to choose who provides your electricity—competition means more options and better rates.

Electricity Facts Label (EFL)

Your plan’s “nutrition label.” It shows your rate, contract length, and fees in one clear document.

Electric Service Identifier (ESID)

Your home’s electric fingerprint—a unique number used to track usage at your address.

Energy Charge Rate

The set price you pay per kWh for electricity used—excluding delivery fees.

Fixed Rate

A steady, predictable price per kWh for your entire contract—no ups or downs.

Kilowatt (kW)

A measure of electrical power equal to 1,000 watts—basically the “speed” of energy use.

Kilowatt-hour (kWh)

Using 1 kilowatt of power for one hour. This is how your electricity bill is calculated.

Off-Peak Hours

Times when fewer people use electricity—power is often cheaper then.

On-Peak Hours

High-demand times, usually evenings when people are home using appliances.

Renewable Energy Certificate (REC)

Proof that 1 MWh of power was produced from a renewable source like wind or solar.

Retail Electric Provider (REP)

That’s us! Texans Choice Power sells and manages your electricity plan in Texas’ deregulated market.

Solar Energy

Electricity made from sunlight—captured with solar panels and converted into power.

Smart Meter

A digital meter that tracks your energy usage in near-real time for accurate billing.

TDU Delivery Charge

The utility fee that covers poles and wires delivering power to your home—set by your local utility.

Time-of-Use (TOU) Rate

A plan type where your kWh rate changes based on time of day—encouraging off-peak use.

Transmission & Distribution Service Provider (TDSP)

The company that maintains the lines and equipment delivering electricity to your home.

Utility

The organization that provides electricity delivery to your home or business.

Variable Rate

A rate that can change monthly based on market conditions—great when prices are low.

Wind Energy

Clean, renewable power generated from wind turbines across Texas.

Helpful Resources

Learn more about Texas energy deregulation and how to make informed decisions about your electricity provider

Texas Energy Savings

Tips and resources for reducing your energy consumption Visit Site

ERCOT Grid Monitor

Live updates on Texas grid conditions and system reliability Visit Site

Energy News Room

Latest Texas energy industry news, trends, and policy updates Visit Site

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