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- What Is a Disconnection Notice?
This blog explores the main elements that may result in a disconnection, the legal notification you will receive in advance, and the possible financial repercussions of failing to make payments. In Texas, the freedom to choose your retail electricity provider (REP) comes with the responsibility of keeping up with payment deadlines to prevent service interruptions. Although disconnections may feel like a worst-case scenario, they are carefully regulated by the Public Utility Commission of Texas (PUCT or PUC). These regulations ensure REPs give proper notice before disconnecting service. Understanding the causes of disconnection, the process timeline, and how it might affect your credit is essential for preventing such disruptions. When Can My Power Be Disconnected, and How Long Does It Take? What Can Trigger a Disconnection? Known as "DNP" (short for "did not pay"), disconnections can happen for several reasons. The most common reason is failure to pay your electricity bill, regardless of the balance. Other potential causes include: Not adhering to the terms of a deferred payment or other agreement with your REP. Using electricity in a way that disrupts service for others or interferes with nonstandard equipment. Failing to pay the required deposit to your REP. A guarantor not fulfilling their payment obligations as outlined in a signed agreement allowing for disconnection of the guarantor’s service. Will You Be Warned Before a Disconnection? Your REP will alert you of missing payments and potential late fees immediately if a bill becomes past-due. Starting the day after your unpaid bill’s due date, you will also be at risk of being sent a legally required notice. For best understanding, below are the official rules as they appear on the “Know Your Rights” PUCT webpage : Prior to disconnecting your service, your REP must provide you with a disconnection notice . This notice must be mailed to you separately (or hand-delivered) no earlier than the first day after the date your bill is due, or, if the REP has offered and the customer has agreed to receive disconnection notices from the REP by email, be a separate email with the words “disconnection notice” or similar language in the subject line. The disconnection date must be 10 days from the date the notice is issued and may not fall on a holiday or weekend (or the day preceding) unless the REP's personnel are available on those days to take payments or make payment arrangements and service can be reconnected. Please be mindful of two commonly confused terms that have entirely different meanings: Disconnection Notice : A legal notice that a customer’s power will be disconnected at the earliest 10 days after the notice is mailed if the balance is not paid. Disconnection Order : The request a REP sends to a TDSP to have a customer’s power turned off starting 10 days after the disconnection notice was sent. It’s also important to know, like the disconnection notice, that not all REPs send a disconnection order to be executed right away after the 10-day disconnection notice period ends. Some may take longer due to customer volume and/or priorities set within that company. But, most likely, the REP will send the disconnection order to the TDSP as soon as possible. What Should I Do If My Power Is Already Disconnected? If your power has been disconnected, pay your past-due balance directly to your REP. Once the payment is processed, your power should be restored within 4-6 hours, depending on weather conditions and the workload of your TDSP. Does a Disconnection Impact My Credit History? A disconnection itself, or prior late payment notices and fees, does not directly affect your credit score. However, there are potential indirect impacts: Non-Payment Reports to Credit Bureaus : While REPs typically do not report unpaid balances to credit bureaus like banks or credit card companies, unpaid balances left unresolved for months can eventually be sent to collections. Collections : If your REP disconnects your service and the balance remains unpaid for about 60–90 days, they may transfer your account to a third-party collections agency. This can severely impact your credit score for years. Each REP has its own policies regarding when to send accounts to collections. However, unresolved balances are generally referred after multiple late notices, calls, and letters go unanswered. To avoid these long-term financial consequences, it’s crucial to address overdue bills as soon as possible. Conclusion The competitive electricity market in Texas gives consumers the freedom to select their electricity services, but it also demands careful attention to payment deadlines and the consequences of missing them. Disconnections, while accompanied by clear notices, can lead to significant costs, including service interruptions, late fees, penalties, and potential long-term financial impacts if the balance ends up in collections. By understanding the disconnection process, staying mindful of deadlines, and addressing any issues with your REP promptly, you can avoid unnecessary stress and financial difficulties.
- How to Avoid Paying an Early Termination Fee (ETF)
If you're a Texas resident in an electricity contract, the idea of paying an early termination fee (ETF) can be frustrating. This is especially true if you're looking to switch providers to enroll in a better plan. However, an existing Texas state law and some careful planning can help you avoid paying these costly fees. Below, we’ve listed some ways you can avoid paying an early termination fee . Tip : If you don’t know if your plan has an early termination fee, you can contact your provider or look at your electricity facts label (EFL) . Time Your Switch to the End of the Contract Most electricity contracts in Texas are between 1 and 36 months in length. But they can be longer in some cases. If you're looking to switch providers without paying an early termination fee, the easiest method is to just wait until your contract is near its expiration. In Texas, you're allowed to switch electricity providers without penalty during the last 14 days of your contract. Retail Electric Providers (REPs, or simply “providers”) are legally required to notify you before your contract ends, giving you ample time to shop for a better plan. Tip : Set a reminder 30 days before your contract expires so you can shop for rates without rushing. Provide Documentation of a Move Texas law protects you from having to pay an ETF if you move to a new location. If you're moving to a different part of Texas, out of state, or just next door, you can avoid this fee by providing proof of your move. The type of documents(s) you need to provide can vary depending on your provider. However, here are some of the documents that may be accepted: Lease agreement for the new residence Closing documents for a new home purchase Utility bill for the new residence in your name Post office change of address confirmation Forwarding address Tip : Notify your current provider about your move as soon as possible, as they'll require documentation to waive the fee. If they’ve already charged you, you can still get a refund if you provide the proper documentation requested. Watch for Rate Changes If your provider increases your rate or changes other terms of your contract without your consent, you are entitled to cancel the contract without paying an early termination fee. This isn’t likely, but it’s a good idea to keep in the back of your mind. Tip : Keep an eye on your bill statements for any unexpected changes, and contact your provider if you see adjustments. Variable-rate energy pricing can change monthly, but fixed-rate energy pricing has to stay the same throughout the duration of the contract. Use a Grace Period for Switching Plans Texas offers a grace period during the first 3 days after enrollment into a new plan. If you realize early on that the plan isn't right for you, this grace period allows you to switch to a different plan or provider without penalty. Check your contract or call your provider to verify if you qualify for this option. Important Note : Grace periods are only available to customers who are switching their electricity provider at a current location. If you are moving into a location and establishing power for the first time in your name there, you do not have a grace period. Negotiate with Your Provider If you're considering switching electricity providers before the end of your contract, don't hesitate to contact your current provider. In some cases, they may offer lower rates or alternative plans that make it worthwhile to stay, especially if you mention that you’re looking at competitive rates. Tip : Providers may be willing to waive fees or offer incentives to keep your business, so it’s always worth asking. Shop for Electricity Plans Without Early Termination Fees When shopping for new electricity plans, look for offers that don’t include early termination fees. Many energy providers in Texas, including prepaid electricity companies, offer no-contract plans or flexible month-to-month options. While these plans may have higher rates, they give you the flexibility to switch providers whenever you find a better deal—without worrying about early termination fees. Final Thoughts While early termination fees can be an obstacle for Texas electricity customers, understanding your contract and knowing your rights can help you avoid paying them. Always plan ahead, monitor your contract’s expiration date, and take advantage of legal protections when applicable. By staying informed and proactive, you can avoid unnecessary fees and maximize your savings on electricity. Ready to Shop for a Better Electricity Plan? GetPower is your trusted source for all things related to Texas electricity. Our goal is to help Texans stay informed and confidently explore competitive electricity rates in the state. Whether you're monitoring market trends or searching for the best electricity rate for your home, GetPower provides all the information you need. For more information, see our blog How to Choose the Best Electricity Plan in Texas .
- Texas Electricity Market Terms You Should Know
The Basics These terms are essential in becoming an educated electricity consumer in Texas. Learning these terms will help you understand your electricity bill and find cheaper electricity plans for your home. Average Billing Also referred to as budget billing, this billing alternative provided by Retail Electricity Providers (REPs) assists customers in managing their energy expenses. Instead of experiencing fluctuating bill amounts based on monthly electricity usage, customers pay a consistent amount each month, determined by averaging their past usage history. For more information, see our blog “ What Is Average Billing? ”. Competitive Energy Market An energy market where homeowners choose their own electricity provider. Most of Texas is a competitive energy market. For more information, see our blog “ Unlocking Texas Power: Deregulation Demystified ”. Effective Rate Your “all-in” rate is the total amount paid per kWh, including all bill charges such as electricity delivery charges, energy charges, and various taxes. For instance, your energy charge might be 7 cents per kWh, but with delivery charges and taxes added, your effective rate becomes 11 cents per kWh. For more information, see our blog “ How to Choose the Perfect Electricity Plan in Texas ”. Electricity Delivery Charges Charges levied by Transmission Distribution Service Providers (TDSP or TDP) to cover the costs of physically delivering electricity from the plant to your property. These fees support the maintenance of transmission poles, electrical wires, and other infrastructure essential for power distribution. Electricity Grid Commonly referred to as “the Grid,” the Texas Interconnection is a power transmission system managed by ERCOT and regulated by the PUCT. Unlike the Eastern Interconnection and the Western Electricity Coordinating Council, it operates independently without synchronous connections to either. Electricity Management An individual or organization that manages all interactions with electricity providers, including payments, contracts, and any related issues. Electricity Usage The amount of electricity consumption a household or business uses to power their property. Energy Broker An individual or organization that procures electricity rates for their clients. Fixed Rates A fixed-rate electricity plan is an energy pricing structure where the cost per kilowatt-hour (kWh) remains constant throughout the duration of the contract. This means that regardless of fluctuations in the market price of electricity, the rate you pay for each kWh will not change. Fixed-rate plans provide predictability and stability in your electricity bills, making it easier to budget for energy expenses. These plans typically range from a few months to several years in length. For more information, see our blog “ How to Choose the Perfect Electricity Plan in Texas ”. Move-In Request A formal request submitted by a customer to start electricity service at a premises. Move-Out Request A formal request submitted by a customer to stop electricity service at a premises. PowertoChoose.org A government-owned electricity shopping website intended to help Texans find electricity plans. Prepaid Plans A plan where you pay in advance for electricity before using it. Typically, these plans are pricier compared to standard ones. While prepaid plans can facilitate quicker activation, they also carry the risk of sudden disconnection if your account balance drops below a certain threshold. For more information, see our blog “ What Is Prepaid Electricity? ”. Rate Structure This describes how your electricity rate is calculated. In Texas, electricity supply plans usually follow fixed rate structures and variable rate structures. For more information, see our blog “ How to Choose the Perfect Electricity Plan in Texas ”. Smart Meter A smart meter is an advanced type of electricity meter that records energy consumption every 15 minutes and communicates this information to the utility company and the consumer. Solar Buyback Plans An electricity plan enabling customers to earn credits on their electricity bill by selling excess energy generated by their home’s solar panels back to the electricity grid. Switch Request A formal request submitted by a consumer to change their electricity provider at their home. Switchhold A restriction placed by an electricity provider or utility company that prevents the customer from switching to a different electricity provider. This hold is typically implemented for reasons such as contractual obligations, unpaid balances, or tampering with your meter or other electrical equipment. Teaser Rate A rate that appears inexpensive for specific usage levels, but incorporates tiered rates, bill credits, or a fixed bill amount, ultimately resulting in higher costs than initially perceived. For more information, see our blog “ How to Choose the Perfect Electricity Plan in Texas ”. Temporary Meter An electricity meter that is used during the construction of a property. Once the construction is complete, a new, permanent meter is installed. Variable Rates A variable rate electricity plan is an energy pricing structure where the cost per kilowatt-hour (kWh) can fluctuate based on changes in the market price of electricity. Unlike fixed-rate plans, the rate you pay can increase or decrease each month, depending on factors such as supply and demand, fuel costs, and weather conditions. Variable rate plans offer flexibility and the potential to benefit from lower prices when market conditions are favorable, but they also carry the risk of higher rates when market prices rise. For more information, see our blog “ How to Choose the Perfect Electricity Plan in Texas ”. Industry Acronyms There are many acronyms used in the vocabulary of the Texas electricity market. Below are examples of these acronyms and what they stand for. Electric Cooperative (CO-OP) A private, non-profit organization that delivers electricity to its customers or members. While most of Texas operates within a competitive electricity market, certain CO-OP areas remain non-competitive. Homeowners in these CO-OP areas cannot choose their own electricity provider. Electricity Facts Label (EFL) A document detailing the specific aspects of a Texas electricity plan, such as the price, contract duration, and associated fees. For more information, see our blog “ How to Read an Electricity Facts Label (EFL) ”. ERCOT System The power system regulated by the Public Utility Commission of Texas that operates independently, without synchronous interconnections to the Eastern Interconnection or the Western Electricity Coordinating Council. Electric Reliability Council of Texas (ERCOT) A nonprofit organization that manages the flow of electric power to more than 26 million Texas customers. Its responsibilities include ensuring the reliability of the electrical grid, facilitating competitive wholesale and retail electricity markets, and overseeing system operations and planning. Federal Energy Regulatory Commission (FERC) An autonomous entity within the United States government tasked with overseeing the interstate transmission and wholesale trade of electricity and natural gas. Additionally, FERC regulates the pricing of petroleum transport across state lines via pipelines. Kilowatt-Hour (kWh) A unit of energy measurement that represents the amount of electricity consumed over time. Specifically, one kWh equals the energy used by consuming 1,000 watts for one hour. It is commonly used by electric utilities to calculate and bill for electricity usage. For example, if you run a 100-watt light bulb for 10 hours, you would use 1 kWh of electricity. For more information, see our blog “ What Is a Kilowatt-Hour (kWh)? ”. Municipally Owned Utility (MOU) A public service provider owned and operated by a local government, supplying essential services such as electricity or water to residents within its jurisdiction. They are governed by local officials or boards appointed by the municipality and are accountable to the local community. These utilities often prioritize local needs and interests and may offer competitive rates and more direct control over service provision. Megawatt Hour (MWh) A unit of energy measurement that represents the amount of electricity used or generated over one hour. Specifically, one MWh equals 1,000 kilowatt-hours (kWh) or 1,000,000 watt-hours. It is commonly used to describe large-scale electricity consumption or production, such as that of power plants or large industrial facilities. For example, if a power plant generates 1 megawatt of electricity continuously for one hour, it produces 1 MWh of energy. In the international scientific community’s official measurement system, one MWh is also equal to 3.6 gigajoules (GJ). Provider of Last Resort (POLR) A Retail Electricity Provider that accepts customers under certain market conditions, usually when another goes out of business. The plans these new customers are placed in are almost always more expensive than the average electricity plans available at that time. Public Utility Commission of Texas (PUCT) Oversees the regulation of electric, telecommunication, water, and sewer utilities across the state, enforcing relevant legislation and providing support to consumers in addressing their complaints. Renewable Energy Credit or Certificate (REC) Represents the environmental benefits of one megawatt-hour (MWh) of electricity generated from a renewable energy source, such as wind, solar, or hydro power. RECs are tradable commodities that certify the bearer owns a certain amount of renewable energy. They provide a way for businesses and individuals to support renewable energy generation and claim the associated environmental benefits, even if they cannot directly use renewable energy themselves. By purchasing RECs, they can offset their carbon footprint and support the renewable energy market. Retail Electricity Provider (REP) A company that operates in regions of Texas where electricity sales are open to retail competition. These companies purchase electricity at wholesale prices, arrange for its delivery, set retail prices for customers, and actively seek out customers to purchase electricity at retail. For more information, see our blog “ What You Need to Know about Retail Electricity Providers ”. Smart Meter Texas (SMT) A service managed by the four major utilities in Texas. It monitors your electricity usage and offers a portal where you can view your past electricity consumption. Knowing your historical electricity usage allows for much better plan matching. Once your historical usage is obtained, this information will be used to create a forecast of what your electricity usage might look like for the next 12 months. This will help find the optimal plan for your household. Transmission and/or Distribution Service Provider (TDSP) – or – TDU (Transmission/Distribution Utility) – or – simply “Utility” TDSPs in Texas own and operate electricity transmission and distribution equipment (poles, wires, etc.) and facilities. These entities are regulated by the PUCT and are obligated to ensure fair and equal access to the electricity. Examples of TDSPs in Texas include CenterPoint, ONCOR, Texas-New Mexico Power, AEP North, and AEP Central. Terms of Service Agreement (TOS) A contract detailing fees, payment choices, and key terms that define your relationship with your REP. Time of Use (TOU) An electricity plan that adjusts your kWh rate based on the time of day when electricity is used. While initially enticing, these plans often turn out to be more costly than anticipated. Your Right as a Customer (YRAC) A formal document explaining customer protections mandated by the PUCT. #renewableenergy #energy #sustainability #climatechange #electricity
- How to Read an Electricity Facts Label (EFL)
EFL Basics Reading an Electricity Facts Label (EFL) involves understanding several key components that provide information about an electricity plan. Here’s how to read and interpret the main sections of an EFL: Electricity Price Average Price per kWh : Displayed for different levels of electricity usage in kilowatt-hours (kWh), typically 500 kWh, 1000 kWh, and 2000 kWh. This includes any base charges, usage charges, energy charges, and any transmission and distribution utility (TDU) charges. Base Charge : A fixed monthly charge that may be included in your bill regardless of usage. Usage Charge : A charge that may be present depending on how much or little energy usage you have during one billing cycle. TDU/TDSP Charges : Fees from your designated utility company (CenterPoint, ONCOR, TNMP, AEP) for maintaining infrastructure (poles, wires, etc.) to deliver electricity to your home. Contract Terms Type of Product : Fixed Rate A fixed rate plan means that your energy charge will stay the same over the entire duration of the contract. A variable rate means that your energy charge can change over the duration of the contract. Be aware, TDU charges can change during the duration of the contract. Contract Term/Length : The duration of the plan, usually in months (6, 12, 24, 36, etc.). Early Termination Fee : The fee charged if you cancel the contract before it ends. If you’re moving and provide sufficient proof of move documents for your provider, then you can have your ETF waived. Examples of proof of move documents are new utility bills in your name at your new address, a bill of sale, or a driver’s license with your new address listed. Renewable Content Percentage of Renewable Energy : Indicates the portion of the electricity that comes from renewable sources, such as wind or solar power, rather than coal or natural gas. Additional Information Special Terms : Any specific conditions or promotions associated with the plan. Contact Information : Details for customer service and support. Extra Fees : Details on late payment penalties, disconnection fees, and reconnection fees can be found on a separate document that will be sent to you called your Terms of Service (TOS). Example Plan Breakdown Let’s break down an example EFL to see how these components come together: Electricity Price At 500 kWh: 20.6 cents/kWh At 1000 kWh: 18.2 cents/kWh At 2000 kWh: 17.9 cents/kWh Minimum Usage Charge: $9.95 per billing cycle (if you use less than 800 kWh during a billing period) Base Charge: Not present or explicitly listed in this specific EFL Energy Charge: 13.6894 cents/kWh CenterPoint Delivery Charges: $4.39 per billing cycle and 4.0410 cents/kWh Contract Terms Fixed Rate Length: 12 months Early Termination Fee: $150.00 Renewable Content Renewable Energy Content: 20% Fees and Charges TDU Charges: See CenterPoint Delivery charges above. Other Fees: Not present on this specific EFL. Will be available in the TOS. Additional Information Special Terms: Not present Contact Information: 1-866-RELIANT; email: service@reliant.com Bill Calculation Now let’s try and calculate a potential bill using the pricing section of the example above. Let’s say you used 500 kWh in one billing cycle. Since 500 kWh is below the minimum usage limit of 800 kWh, you will have to pay a $9.95 charge. The energy charge is 13.6894 cents/kWh and you multiply it by 500 kWh. This comes out to 6844.7 cents. But you will move the decimal point two spots to the left to change the amount from cents to dollars. This results in $68.447 . Add on a mandatory $4.39 CenterPoint charge. CenterPoint also has a per kWh charge, so multiply 4.0410 by 500 kWh. This comes out to 2020.5 cents. But you will move the decimal two spots to the left again. This results in $20.205 . Add together the four bolded numbers above, and you get your bill total which is $102.992. It will be shortened to $102.99 . To check your work, divide your bill total of $102.99 by 500. This comes out to $0.205984. Move the decimal point two spots to the right to go from dollars to cents, and you get 20.5984 cents. This will be rounded to 20.6 cents , which matches the cent amount for 500 kWh at the top of the example EFL. By understanding each section, you can make an informed decision about which electricity plan best suits your needs and budget. #budgeting #solarpanels #renewableenergy #energy #finance #sustainability #climatechange #news #personalfinance #sustainableliving #electricvehicles
- How to Read Your Energy Bill
We all pay electricity bills, but has anyone taught us how to read an electric bill? It’d be nice if your electricity bill explained things like, what are TDSP (TDU) delivery charges or what the utility charges on electric bills are for. Well, good news! We’re doing an electric bill breakdown so you can understand exactly how to read it and what the charges mean. The Basics Before trying to calculate any costs, let’s first show how to read your electric bill. As you see in the example bill above, there are four major sections: Account details, plan details, electricity consumption, and your charge summary . No matter who your electricity provider is, these four things will likely be on every bill. And once you know what to look for each month, it becomes a lot easier to understand the electric bill breakdown. So, without further ado, we figured the best way to have your electricity bill explained was with a few examples! Reliant Energy Example Bill On this bill you’ll see the account details at the top left with your name and address. To the top right, you’ve got a charge summary reminding you of your billing period, as well as amounts due. Below that, you’ll also see the kWh rate for your energy charge, as well as the pay period, and utility provider. The bottom left shows your electricity consumption (with a convenient comparison chart!), and the bottom right defines your plan details . Green Mountain Energy Example Bill For Green Mountain Energy bills your account details are right at the top left with your name, address, and account number. Your electricity consumption is over to the right, along with your billing period, and your partial charge summary can be found at the top and the bottom. There isn’t a charge summary with itemized details of charges and rates, although that might be on the next page. Notice anything else missing? This bill does not lay out any of your plan details. While there is account information on the top left, it’s not the full plan information as it doesn’t show things like the contract end date. This is one part of electric bill breakdown that may differ across electric companies, but having the plan name, length of contract, and utility provider readily accessible is not only convenient for customers, it’s a clearer way to see how the monthly total was calculated. TXU Energy Electricity Example Bill You’ll see the same is true for TXU— plan details aren’t easily accessed on the bill. Plan details and a charge summary likely to only be found on the second page, if you’re willing to look. Perhaps there is an expectation that you know your plan’s length, kWh rate, and utility charge, but really dissecting the bill can be tough. It could make it more difficult for consumers to fully understand how their electricity bill is calculated. Now that you’ve seen examples of what can be expected, let’s go into a little more detail on each section. Account Number & Customer Information Most of the time, the account details include more than just your name and address. For example, what is an ESI ID? Let’s break it down. Account Number If you pay for electricity, you’ll have an account number on every invoice. This is how your electricity provider can look up your account info, plan details, address and more. Not to mention, this number is often used as your customer ID for your provider regarding all billing and customer support. Address This is a bit of a no-brainer, but the service address on your bill should be the address of whatever location you’re trying to power. ESI ID Number This acronym stands for “ Electric Service Identifier ” because it uniquely identifies your home address by a particular number. Think of the ESID, also sometimes referred to as ESI ID, as your address on the Texas electricity grid. Unlike your meter number, your ESID will most likely remain the same. So, if you’ve ever wondered where the ESI ID number on your meter is—it’s not. It’s only on your bill. Electricity Plan Details & Energy Service Providers This section should ideally be on every electricity bill. As shown in the examples above, that’s not always the case—but below you’ll see why each part is integral to understanding your electric bill. Plan Name Having this on every bill reminds you which plan you enrolled in (and who your retail electricity provider is). Not to mention, the electricity provider sometimes attaches your contract length to the back of the plan. For example, the plan could be listed as “Texas Power Saver 12” or “Green Texas 9.” In the example, 12 and 9 signify respective 12 and 9-month plans, so you know at a glance how long your current rate will last. Expiration Date The date listed is the final day of your current contract. This date is critical because it identifies when you need to shop for your next plan. When you get a couple weeks away from ending your current contract, head on over to GetPower to make sure you’re getting the lowest energy rate available in your area. How GetPower Works TDSP Contact Information Having the name and number of your Transmission and Distribution Service Provider (TDSP) may not seem necessary, but in the event of a power outage, your TDSP is who you’d need to call. Luckily, most delivery companies are available 24/7 so you always have someone to call in an emergency. Electricity Consumption & Meter Charges For most of us, this is the most important part of every electricity bill. It shows your electricity base charge, how much electricity you’re using each month in kilowatt hours, and it helps breakdown how to understand electricity rates (so you know exactly what you’re paying for). Meter Number This number is the identification number attached to your home’s meter, so think of it as the serial number for the hardware. Over time, if your meter breaks or has issues, the meter number will change as a new meter is installed. Service Dates Each billing period typically lasts around 30 days, so having the start and end date on each bill just gives you more insight into how much you’re being charged for the month. Once you have a few electricity bills to reference, the service dates can be easy reference points when comparing what times of year you’re spending more. Previous & Current Reads These numbers basically show you what your meter reading was at the end of the last month versus where it is now (in kilowatt hours). Most electric companies do not reset the meter in between readings so to keep track of your monthly usage, simply subtract the previous reading to the current reading. Meter Multiplier Sometimes current transformers (CTs) or potential transformers (PTs) are used to step down the current/voltage in a metering circuit to safer levels. If that’s the case with your home’s meter, then there’s an extra step in figuring out how to calculate your electricity bill total from your meter reading: watt hour meter multipliers. Let’s use an example to explain how to use a meter multiplier. Say your meter has a CT ratio of 200:5. This means 200 amps are flowing through the primary side of the current transformer while 5 amps are coming out of the secondary side. In this case, the meter multiplier is 40, which is simply 200/5. What if your meter has both a CT and a PT ratio? If a service has both CT’s and PT’s then the two values are multiplied together to give the billing multiplier. For example, if a service has 200:5 CT’s and 2.4:1 PT’s, the multiplier will be 96. This is because 40 x 2.4 = 96. You would take your meter multiplier and (you guessed it!) multiply it by the difference between your current reading and your previous reading. Most residential properties will not require CTs or PTs, so your meter multiplier will often show up as “1” on your electricity bill. Usage (kWh) This amount represents the “kilowatt-hours” of electricity you’ve used over the past month, and it’s often the most important figure (aside from the total) on your bill. To get an idea of your base charge for electricity, you’ll need to know your effective rate rather than just the energy charge (or your plan’s rate). The effective rate includes your energy rate, TDSP charges and various fees. Let’s use our bill example from the very top of this page: The bill balance was $81.88, and the billed kWh usage was 782. Divide the balance by the usage, and you’ll get your effective rate. $81.88 / 782 = 10.4 | Therefore, the energy charge is only $0.0537, but the effective rate (total price per kWh including all charges) is actually $0.104 or 10.4¢ How Your Electricity Bill Is Calculated Do you ever feel like your electricity bill total is much higher than you thought? How are electricity bills even calculated? What are these TDSP delivery charges? Why is there a base charge for electricity? What are the TDU charges on your electric bill? We’re defining every possible fee you see on your bill so you can know exactly what you’re being charged for. Energy Charge This charge is based on the electric energy (kWh) you consumed over the month. TDU Meter Charge Your Transmission and Distribution Utility (TDU) company is responsible for delivering electricity to your meter—and while the delivery has its own fee (see below), the TDU meter charge is simply for metering a customer’s consumption approved by the Public Utility Commission. TDU Delivery Charge This is the infamous charge that covers the cost of moving electricity from the generation plant to your home. This, in combination with the meter charge, accounts for all TDU charges on electric bills. Tax The sales tax is collected by authorized taxing authorities, such as the state, cities, and special purpose districts. PUC Assessment This fee recovers the statutory fee for administering the Public Utility Regulatory Act. Luckily, this is a very minimal charge every month. Gross Receipts Reimbursement This fee recovers any miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than 1000. Chances are you’ll be subjected to these. Total Charges Aside from the kWh usage amount, this is obviously the most important number on your monthly bill. This figure is the total sum of all fees listed above—and what you owe to your provider. GetPower Does the Hard Work Countless consumers don’t know how much they pay each month, and they also have no idea how much they are paying per kilowatt-hour. In essence, the kWh, in addition to a few other charges, determines how much you owe the electricity provider you buy from. With that said, it’s likely the average consumer doesn’t understand how to read their electricity bill charges correctly, but we’re hoping our electric bill breakdown makes you feel a little more confident. The next time you’re looking for a new plan, consider using GetPower. Get Power is a rate shopping website that is able to pull your personal usage data and recommend which plans will be best for you and your wallet. GetPower will also rule out all of the gimmicky plans with fake credits that rip off thousands of Texans year after year. And the best part about it all is – GetPower is completely free. Come pick your new plan at GetPower and don’t worry about overpaying for electricity ever again. Find Low Electric Rates for Free #solarpanels #renewableenergy #energy #sustainability #electricity
- What You Need to Know about Retail Electricity Providers
Retail Electricity Providers (REPs) in Texas You’ve probably heard of a few of them at least, but do you know exactly what an REP does? They’re the final link in the electricity supply chain, connecting consumers to the power they need. But here’s the kicker—they don’t build or maintain any of the infrastructure, or make the electricity themselves. You see, there are several links in the chain, each with their own role to play. It starts with the generators, all of the power plants that in a variety of ways create the electricity we use. That’s easy enough. Getting it across the state and into your home is where it gets a little complicated. What’s the Difference Between REPs and TDUs (Transmission and Distribution Utilities)? REPs buy and sell electricity. They buy it in bulk from the wholesale market and then set the prices and terms to sell it to individual retail consumers. They handle contracts. The companies that handle the electricity, get it from the generators, and deliver it to your house are the TDUs. These TDUs (a.k.a. TDSP) own and manage the lines, wires, poles, and meters within their service area. We call all of that infrastructure responsible for the grid. Through the grid, they physically connect the power to all of the homes and businesses in their part of the state. So, if there is ever a problem with the grid, call the TDU. They fix the stuff and get the lights back on! Who’s your TDU? Check here. Here are a few key points to remember: Power Generators connect to the grid so the electricity they make and sell on the wholesale market can get delivered to consumers. TDUs maintain the grid, and consumers pay a delivery charge for that based on their electricity demand. But you don’t pay the TDU directly, those charges get passed through the REP and makeup part of your monthly bill. In the competitive market, you get to pick your REP, but you can’t choose your TDU! REPs set rate offers and then charge consumers for their electricity usage according to those rates. So the energy charge for your usage may vary from one REP to another and one contract to another. You might wonder, why even bother with these REPs? Well, you’d have to buy directly from the wholesale market – and that is a wild ride. It is subject to a lot of unknown variables and can shift on a dime. If you end up buying more than you need or have to fill a gap at the last minute, you could lose a lot of extra money. REPs step in to manage demand, buy electricity smartly, and handle the risks. They set retail prices for the fixed and variable-rate plan options you buy and save you from the volatility. But there’s a catch—they don’t always play fair. While the Public Utilities Commission (PUC) sets charges for the TDUs, REPs have more freedom in how they price things. And, there are gimmicks, hidden fees, and pricing traps that you have to watch out for. Shopping for the Right REP There’s no magic in the electricity they sell—it’s all the same stuff no matter who you buy it from. So why pay more? You just have to pick the plan with the lowest rate for your usage. Of course, that’s a little easier said than done with so many REPs in Texas offering tons of electricity plans. It’s a jungle out there! But don’t worry, we’ve got your back to help you snag the best deal for your home sweet home. GP Plug Here #solarpanels #renewableenergy #energy #sustainability #news
- 7 Warning Signs to Watch for in Electricity Plans
Living in Texas means dancing with Retail Electricity Providers (REPs) and their sometimes confusing, not-so-fun energy plans. Teaser rates, tricky ads – you name it. At GetPower, we understand that the struggle is real. Here’s the lowdown on 7 warning signs in electricity plans you’ll want to spot and avoid. 1. Moving/Transferring Service Don’t get caught in the contract trap if you move! Your contract isn’t stuck to you – it’s tied to the location only. You can cancel without penalties if you show proof of moving. Then you’re free to choose the plan you want if you need service at a new location. 2. REP Retention Team Incentives When a retention team member comes offering incentives to keep you, ask for it in writing. This ensures that person has the authority to offer these incentives and that the REP will honor the deal. Make sure they stick to their promises! 3. Hidden Fees Beware of sneaky charges! Your quoted rates should cover EVERYTHING, not just the energy charge. Double-check the fine print to avoid any unwelcome surprises. 4. Fluctuating Rates Variable-rate plans (aka month-to-month electricity) can mess with your budget. Be sure you understand what you’re signing up for, especially with prepaid plans. 5. Block/Tiered Rate Programs These plans might surprise you with different prices at various usage levels. Watch out for unexpected hikes in your bill! 6. Contract Terms Read the fine print! Don’t just check the dates and top-line rates – those are important but multiple factors determine how much you pay. From delivery charges to peak hour penalties, know every detail before committing. 7. Early Termination Fee Traps You can dodge those termination fees by switching no earlier than 14 days before your contract ends. But be alert – early renewal notices might rope you into renewing before you’re ready. Bonus Tip: Understanding Contract End Dates Confusing Dates: Figuring out when your contract actually ends can be tough. Early Renewal Notices: Some providers send renewal notices too early, limiting your options and locking you into higher rates. Want Better Rates? Check Here! Curious if there are better electricity rates around? Pop your zip code in below! ZIP Code Tool Here #contracts #renewableenergy #energy #climatechange #sustainableliving
- How to Choose the Best Electricity Plan in Texas
So, you’re in Texas and want to pick the best electricity plan for your home? Cool, let’s talk about the options you’ve got. First off, there are a lot! In the competitive market, there are over a hundred providers, all offering a variety of plans. If you’re in a regulated area of the state, it’s a different story. Not sure about your area? Check your zip below to find out. Understanding Electricity Plan Options Okay, there are a few different types of plans. Though they are not common, there are some prepaid, “pay-as-you-go” options. Most plans are what you might call postpaid, however, and there are two main types of those. First up, fixed-rate plans. Your kilowatt-hour (kWh) price stays the same throughout your contract. No surprises, no matter what happens in the market. On the flip side, there are variable-rate plans. These plans change kWh prices month-to-month. You may have a good rate to start, but if the energy market goes wild it could cost you big time. One REP may offer a variety of plans, some fixed and some variable. They may have multiple versions of each available as well. And with so many REPs out there, Texas is swimming with electricity plans. Don’t worry, we’ve got your back. GetPower is here to guide you through this maze of options so you can find the best fit for your home sweet home. Why So Many Types of Plans in Texas? What can we say, we’re popular! But seriously, Texas is a big place with a lot of people in a wide variety of climates. Texans all have different electricity needs, and there is no one-size-fits-all plan. Luckily, we have plenty of options to choose from. There’s probably one that is perfect for you; you just might spend ages hunting through them all to find it. Thankfully, we’ve got tools to make it easier to navigate the options. Decoding the Plans Each plan has specific rates and terms. Some have special perks, like “free” electricity on nights and weekends. But hold on! Those “free” times might mean you pay more during the day. Sneaky, right? Always check the fine print in the Electricity Facts Label (EFL) to know exactly what you’re signing up for. Fixed-Rate Plans: A Safe Bet Are you interested in stability? Then a fixed-rate plan is what you need. Sure, the price might not always be the cheapest, but there are no sudden price hikes. These are the Steady Eddies of electricity plans. Variable-Rate Plans: The Gamble Now, variable-rate plans? Also known as “month-to-month electricity plans”, they can be like a rollercoaster. While it could be a steal one month, it might punch your wallet the next. These plans give you freedom but can cost more in the long run. Prepaid Plans: Keeping Tabs on Usage For the vigilant ones, prepaid plans might be intriguing. You pay upfront, monitor usage, and recharge when needed. No credit checks, but stay on top of your balance or risk getting disconnected. Finding Your Fit So, what’s the best plan? Fixed-rate plans are like that cozy blanket—steady and predictable. Variable-rate plans offer flexibility but at the risk of unpredictable spikes. Prepaid plans? Great if you’re a usage-tracking champ. Whew! That was a lot, but choosing an electricity plan doesn’t have to be rocket science. Remember, the perfect plan is the one that fits your lifestyle like your favorite pair of jeans—comfortable and reliable. #investing #budgeting #financialplanning #finance #personalfinance
- Unlocking Texas Power: Electricity Competition Made Easy
If you live in one of the deregulated areas of Texas, you’ve got the freedom to choose who powers your home sweet home. But with so many plans out there, picking the right one can feel like finding a needle in a haystack. Cue GetPower to save the day! Let’s break it down: back in 2002, Texas decided to shake things up and opened up the electricity market to competition. Some areas were exempt and remain regulated, but the majority of Texans can shop around for their power and potentially snag lower prices. (Quick note: the folks managing the power lines? They stayed the same. They’ll still be doing their thing regardless of who you choose.) Check out our colorful map – those splashes of color? Deregulated spots. Gray zones? They’re either electric cooperatives or areas that aren’t part of the pick-your-provider party. Living in a deregulated zone means you’ve got a Transmission and Distribution Service Provider (TDSP or TDU) delivering your juice, but you choose your Retail Electricity Provider (REP) through a contract. {Competition Map} Now, not all cities fall completely into one category or the other. For instance, Houston is deregulated, but some close surrounding areas are not. And some smaller places like Flower Mound have a mix of regulated and deregulated spots. Confusing? A little! That’s why we’ve got a list of zip codes that are in the deregulated club. {Deregulated ZIP Code List Tool} If your zip code is on the list, you’re likely in a spot where you can pick your power pals. But why stress over it? Enter your zip code below to see if we can lend a hand in finding the perfect plan for your home sweet home. {SC Button} Still not sure? Give your local co-op or municipality a buzz. For those regulated cities, like Austin or San Antonio, unfortunately, you don’t get to join the choose-your-provider gang But if you’re in a deregulated city and ready to dive into the world of choice to get those low rates, swing by GetPower’s site to scope out the best plan for you! {Sign Up Button} #politics #neoliberalism #news #economics #regulation
- What Is Average Billing?
Ever heard of average billing or maybe budget billing? It’s a payment option some Retail Electricity Providers (REPs) offer to help you handle your energy bill without any crazy surprises. Instead of the rollercoaster of paying different amounts for electricity every month, you get to pay a similar, more predictable amount based on your usage history.. So, how does it work? Basically, the REP looks at your last 11 – 12 months of electricity usage, adds them up, divides by 12, and boom! That’s your average monthly electricity usage. They then multiply that by your energy rate and add in the delivery charges to figure out what you owe each month. Simple, right? And the best part? Your bill stays pretty much the same each month. If you’re moving into a new place, then they can use the previous owner’s usage average to calculate your monthly payment. Though, fair warning, that might not match how you use electricity. You’d be paying based on someone else’s habits, which may not be a good fit for you. This leads to the big question… Is Average Billing Worth It? The good news is that average billing makes budgeting a breeze. No unexpected spikes in your electricity bill to stress about—it’s all about that peace of mind. But here’s the catch : It won’t save you money. At the end of the day, you pay for what you use. If your average bill amount is ever lower than the charge for what you’ve actually used, that difference will be added to your deferred balance. And if your average bill is ever higher than that month’s actual usage, the difference will be deducted from your deferred balance. That deferred balance will accrue throughout your contract and will be owed in full at the end. And that can snowball rather quickly. Think about it: Texas weather is as unpredictable as it gets. Hotter summers mean cranking up the AC, while colder winters call for more heating. So, even though your bill looks nice and steady, that deferred balance might be quietly growing. And don’t forget home improvements or repairs! Anything from fixing your AC to major renovations can cause electricity usage spikes. Last April may have been a low usage month, but this year, renovations tripled your usage. You still pay the lower average bill, but all that extra usage goes into your deferred balance, building up without you even noticing. Some REPs try to minimize the deferred balance by tweaking your monthly average billing amount, but depending on how much electricity you end up using, there might still be a surprise waiting for you when the contract ends. Plus, having a consistent bill might make you a bit lax on saving energy. It’s easy to forget to turn lights and appliances off when everything seems like smooth sailing, right? Before you know it, that deferred balance has grown, or your REP hikes up your bill for the next contract. So, while average billing can be a good friend for budgeting, you have to be mindful of the deferred balance that may be accumulating.Owing a large sum at the end of a contract could diminish the benefit of paying a steady amount each month. It’s all about finding that balance between predictability and keeping an eye on your energy usage! {GP CTA} #creditcards #solarpanels #energy #finance #personalfinance













