Energy Information

SaveOnElectric.com was created to help consumers take advantage of the emerging competitive energy markets. The company is the result of a unique synergy between the convenience of online capabilities and the numerous choices available from energy competition. SaveOnElectric.com is the leading source for energy information and solutions.

Texas Electric Choice

Texas Electric Choice is the power given to Texans to choose their own Retail Electric Provider. Who has the Power to Choose in Texas? Well, about 75% of the state of Texas has been given the power to choose their Electric Company, when prior one Electric Provider controlled/managed the transmission, distribution, and sale of electricity to residential and commercial locations. The Deregulation of Texas Electricity became effective in Texas January 1, 2002 with the passing of the Senate Bill SB7, so you now as a Texas electric consumer have the Power to Choose.

History of Deregulation

Before the Texas Senate Bill 7 (SB7) was passed on January 1, 2002 electricity consumers didn't have the option to choose who they received electricity from. But now with the Deregulation of Texas Energy it has broken down the market into several different Retail Electric Providers forming competition and lower electricity rates for consumers throughout Texas. Over 75% of Texas has been given the power to choose their own Electric Provider, and millions of Texans have already exercised their right to choose.

The Following Areas now have the Power to Choose
* TXU Electric Delivery Service area includes these cities: Arlington, Dallas, Fort Worth, Irving, Midland, Odessa, Plano, Richardson, Round Rock, Tyler, and Waco.
* Centerpoint Energy Service area includes Baytown, Galveston, Houston, Humble, Kingwood, Pasadena, and Sugar Land.
* AEP South (CPL Retail Energy) Service area includes Brownsville, Corpus Christi, Harlingen, Laredo, McAllen, San Benito, and Victoria.
* AEP North (WTU Retail Energy) Service area includes Abilene, Alpine, San Angelo, and Vernon.
* TNMP (First Choice Power Area) Service area includes Lewisville and various cities throughout Texas.

Smart Meters

Meters have evolved substantially over the years, and the replacement of current mechanical meters with more efficient Smart Meters has started. These new meters have two-way, digital communication capabilities, but initially they will continue to measure your electricity use. Your ability to get information from your Smart Meter will vary, so you will need to contact your company to find out how to access your usage information.

In the future, these state-of-the-art meters will help provide you with many features available through Smart Metering or Advanced Meter Systems (AMS). These electronic communication systems record and store electricity usage from Smart Meters and send that information to your Transmission and Distribution Service Provider (TDSP). The TDSP provides this information to your Retail Electric Provider (REP) for billing purposes.

Benefits

When fully implemented, consumers will be able to track their electricity consumption in 15-minute intervals online through the web site www.smartmetertexas.com, or through an in-home monitor if you choose to purchase one. Knowing how much electricity you are using throughout the day will allow you to proactively manage your electricity usage by choosing to turn something down or off altogether or by postponing an energy-consuming task to a different time of day when electric rates are cheaper.

Some appliance companies are already working on creating 'smart appliances' such as dishwashers, refrigerators, washers and dryers that interact with Smart Meters and can be controlled remotely by the customer or through a home area network (HAN). There is also technology that will allow a customer to plug an existing appliance into a special wall plug that can communicate with the Smart Meter.

Types of rate plans for electricity companies

Variable Rate Plans are based on the flow of the energy market, meaning your price can change month-to-month. The advantage to having a variable rate plan is the flexibility of canceling your service at any time without a cancellation fee.

Fixed Rate Plans carry a contract term with it, meaning you can lock in the rate you pay per kWh when you order one of these plans. The advantage of a fixed rate plan is that your price is protected from monthly market pricing fluctuations.

Indexed Rate Plans use a pre-established formula for the monthly per kWh rate. It is usually tied to an index, such as the natural gas index, to help determine prices.

Renewable Energy Plans offer clean energy derived from sources such as wind, water and solar. To order renewable energy at SaveOnGreenEnergy.com, simply look in the “Energy Type” column after you have entered your zip code for the green logo next to the electricity providers available in your area.

Cancellation fees only apply should you cancel your service before the contract term is up. The fees will vary depending on provider and package, and all applicable fees should be outlined in the terms of service for each electricity service plan.

^*Pay-As-You-Go electricity service means that you pay your monthly bill before each month begins, without worrying about credit checks or ID requirements.

Glossary

Affiliated 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. It does not operate or maintain distribution and transmission wires.

Aggregator

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

Average Payment Plan

An agreement worked out between a REP and a customer that allows you to pay approximately the same amount for your electricity each month, with the balance to be trued-up periodically to account for over or under payments. All Retail Electric Providers are required by the PUC to offer average payment plans.

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. See also 'Municipally Owned Utility.'

Commercial Customer

One of four commonly used designations for classes of customers. The others are residential, small commercial and industrial. Commercial customers are not involved in manufacturing. Examples of commercial customers are retail stores, restaurants and educational institutions with a peak demand of 50kW or more during any twelve month period.

Competitive Retail Electric Provider

A Retail Electric Provider that is certified by the PUC and competes for your business by offering lower prices, renewable energy options, 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.

Do Not Call List

The PUC has established two No-Call Lists for customers who do not want to receive telemarketing calls from Retail Electric Providers or other telephone marketers doing business in Texas.

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.

Electricity Facts Label

An information sheet required by the PUC that provides customers with standardized information on a Retail Electric Provider’s prices, contracts, sources of power generation and emissions. It allows customers to make an 'apples-to-apples' comparison of Retail Electric Provider offers.

Generation

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

Industrial Customer

One of four commonly used classes of customers. The others are commercial, small 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. The local wires company does not offer preferential treatment to any customer over another when performing switches or restoring power after an outage.

Municipally Owned Utility ('Muni')

A non-profit utility that is owned and operated by the municipality it serves. In Texas, municipally owned utilities may opt into the competitive retail electric marketplace. See also 'City-Owned Utility.'

Peak Demand

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

Prepaid Electric Service

Electric service for which the customer pays in advance for electricity, whether via a special meter or estimated future electricity usage, and for which electric service is provided on a 'pay-as-you-go' basis.

Provider of Last Resort

The Provider of Last Resort (POLR) serves as the 'back-up' provider when a Retail Electric Provider leaves the market for any reason. If this happens, customers may enroll for service from the POLR or switch to another retailer.

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. Learn more

Renewable Energy

Electricity that is made from 'environmentally friendly' fuel resources, such as wind, water, biomass or solar. Sometimes referred to as 'green' energy. Information on a Retail Electric Provider's generation sources can be found on its Electricity Facts Label.

Residential Customer

One of four commonly used customer classes. The other three are commercial small commercial and industrial. Residential customers include private households that utilize energy for such needs as heating, cooling, cooking, lighting and small appliances.

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.

Retail Electric Provider

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

Rural Electric Cooperative (Co-op)

A customer-owned electric utility that distributes electricity to members and that receives lower-cost financing through the federal government. In Texas, co-ops can choose to opt into the competitive retail market.

Slamming

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

Small Commercial Customer

One of four commonly used customer classes. A small commercial customer is a business whose peak electric demand during any twelve month period is leass than 50kW.

Terms of Service

A contract between a Retail Electric Provider and a customer that outlines fees, length of service and other important information.

Texas Electric Choice

The customer education program managed by the Public Utility Commission to inform Texans about their options in a competitive retail electric market.

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.

Your Rights As a Customer Disclosure

A document that informs you of your rights as mandated by the PUC. Retail Electric Providers must provide you with this disclosure.