TLV Energy

Glossary of Energy Terms

Pricing Terminology

Fixed Price

The simplest way to buy electrical power. The client can buy power at a fixed price over the term of the contract.

Index (Floating) Price

The most common way electrical power is priced. The price of power is indexed to another benchmark, such as the Natural Gas Index resulting in a price of power that is variable throughout the year.

Basic Power Pricing

The price of power is directly correlated to prices of natural gas and efficiency (measured as “heatrate”) of generation in a particular region.

Natural Gas Index

Allows the client to fix the price of electrical power at a future date based upon the price of natural gas at that date and the premium (adder) for the conversion of the wholesale power block to a fully-shaped retail product.

Real-Time Pricing

The price of energy in the balancing wholesale market in a particular region where it is priced every 15 minutes plus a premium (adder).

Other Energy Terminology 

Affiliate Retail Electric Provider

The Affiliate Retail Electric Provider was part of the original electric company that generated and sold electricity in your area. Now, the Affiliate Retail Electric Provider only sells electricity and provides customer service 

Aggregator

An entity registered with the Public Utility Commission that brings together a group of customers to buy electricity in bulk.

City-Owned Utility

A non-profit utility that is owned and operated by the city it serves. In Texas, city-owned utilities may opt into the competitive retail electric marketplace.

Commercial Customer

One of three commonly used designations for classes of customers. The others are residential and industrial. Commercial customers are not involved in manufacturing. Examples of commercial customers are retail stores, restaurants and educational institutions.

Competitive Retail Electric Provider

A Retail Electric Provider that is certified by the PUC and competes for your business by offering lower prices, added customer service benefits or other incentives.

Cramming

Adding charges to a bill without a customer’s approval. This practice is illegal and penalties are enforced by the PUC.

Deregulation

Removal or relaxation of regulations or controls governing a business or service operation like utilities

Electric Reliability Council of Texas (ERCOT)

The corporation that administers and maintains the reliability of the state's electrical power grid. When you choose a new Retail Electric Provider, this group will send you a postcard confirming your switch from one Retail Electric Provider to another.

Fuel Factor

An Affiliate Retail Electric Provider is allowed to recover its costs for the fuel used to generate electricity, such as coal, natural gas, wind, water, nuclear, etc., through the fuel factor. This cost is set by the Public Utility Commission of Texas and charged on each customer’s bill, based on kilowatt-hour (kWh) usage. An Affiliate Retail Electric Provider is prohibited from making a profit on fuel costs.

Generation

The production of electricity. Electricity is produced by a number of methods, including natural gas, coal, nuclear power, wind, water and solar energy.

Industrial Customer

One of three commonly used classes of customers. The others are commercial and residential. Industrial customers typically have the highest demand for electricity. Examples of industrial customers are a factory or manufacturing plant.                               

Kilowatt-Hour (kWh)

A unit of energy equivalent to one kilowatt (kW) of power expended for one hour of time. The amount of electricity you use each billing period is expressed in terms of a kilowatt-hour, and is noted on your bill.

Local Wires Company

The company that transmits and delivers electricity to a customer’s home or business along the poles and wires (formerly a local electric utility). This company is still responsible for maintenance and repair of these poles and wires.

Peak Demand

The highest 15- or 30-minute demand recorded during a 12-month period.

Public Utility Commission of Texas (PUC)

The state agency that is responsible for the regulation and oversight of electric and local telecommunication services in Texas. Under Electric Choice, the PUC regulates the delivery of electricity and enforces customer protections.

Restructuring

The reorganization of traditional monopoly electric service to allow operations and charges to be separated or "unbundled" into generation, transmission and distribution and retail services. This allows customers to buy retail electric service from competing providers.

A company that sells electricity to customers. All Retail Electric Providers must be certified to do business by the Public Utility Commission of Texas.

Slamming

Switching electric service without a customer’s approval. This practice is illegal and penalties are enforced by the PUC.

Transmission and Distribution

The actual delivery of electricity over poles and wires to your home or business. These services are provided to you by your local wires company, which is responsible for maintaining the poles and wires, and responding to emergencies and power outages as always. The PUC still regulates transmission and distribution to ensure the safety and reliability of your electric service.

Usage

This is the amount of electricity you used during the billing period listed in kilowatt-hours (kWh). This will be listed on your electric bill as kWh used.

Energy Weblinks 

Electric Reliability Council of Texas: www.ercot.com

Texas Electric Choice: www.powertochoose.org 

Federal Energy Regulatory Commission: www.ferc.gov

Energy Information Administration: www.eia.doe.gov

New York Mercantile Exchange (NYMEX): www.nymex.com/

Department of Energy: www.energy.gov

Public Utility Commission of Texas: www.puc.state.tx.us

PJM: www.pjm.com

A Different Kind of Energy Weblinks

USA Triathlon www.usatriathlon.org

MS 150: biking to cure MS www.ms150.org

More to come, check back soon or drop us a note and we will email you when we add information that is of interest to you.