Texas Billing Terms and Definitions

Base Charge — A charge assessed during each billing cycle without regard to the customer’s demand or energy consumption.

Demand Charge — A charge based on the rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designated period, during the billing cycle.

Energy Charge — A charge based on the electric energy (kWh) consumed.

kW — Kilowatt, the standard unit for measuring electricity demand, equal to 1,000 watts.

kWh — Kilowatt-hour, the standard unit for measuring electricity energy consumption, equal to 1,000 watt-hours.

Advanced Metering Charge — A charge assessed to recover a TDU’s charges for Advanced Metering Systems, to the extent that they are not recovered in a TDU’s standard metering charge. Acceptable abbreviation: Advanced Meter.

Competition Transition Charge — A charge assessed to recover a TDU’s charges for nonsecuritized costs associated with the transition to competition. Acceptable abbreviation: Competition Transition.

Energy Efficiency Cost Recovery Factor — A charge assessed to recover a TDU’s costs for energy efficiency programs, to the extent that the TDU charge is a separate charge exclusively for that purpose that is approved by the Public Utility Commission. Acceptable abbreviation: Energy Efficiency.

Late Payment Penalty — A charge assessed for late payment in accordance with Public Utility Commission rules.

Meter Charge — A charge assessed to recover a TDU’s charges for metering a customer’s consumption, to the extent that the TDU charge is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.

Miscellaneous Gross Receipts Tax Reimbursement — A fee assessed to recover he miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than 1,000.

Nuclear Decommissioning Fee — A charge assessed to recover a TDU’s charges for decommissioning of nuclear generating sites.

PUC Assessment — A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act.

Sales tax — Sales tax collected by authorized taxing authorities, such as the state, cities and special purpose districts.

System Benefit Fund — A non-bypassable charge approved by the Public Utility Commission, not to exceed 65 cents per megawatt-hour, that funds the low-income discount, one-time bill payment assistance, customer education, commission administrative expenses, and low-income energy efficiency programs.

TDU Delivery Charges — The total amounts assessed by a TDU for the delivery of electricity to a customer over poles and wires and other TDU facilities not including discretionary charges.

Transmission Distribution Surcharges — One or more TDU surcharge(s) on a customer’s bill in any combination. Surcharges include charges billed as tariff riders by the TDU.

Transition Charge — A charge assessed to recover a TDU’s charges for securitized costs associated with the transition to competition.