The Basics
The words on every bill. Learn these four and most of the confusion goes away.
kWh (Kilowatt-Hour)
The unit you actually buy. One kWh runs a 100-watt bulb for 10 hours. A typical Texas home uses 1,000–1,500 kWh a month. Every rate you see is a price per kWh — so your real cost depends on how many you use, not the headline number.
REP (Retail Electric Provider)
The company whose name is on your plan — TXU, Reliant, Gexa, and about 100 others. They buy power wholesale and sell it to you at a markup. They do not own the poles and wires, and they have zero control over outages.
TDU / TDSP (Utility)
The utility that owns the poles and wires and delivers power to your home — Oncor, CenterPoint, AEP, TNMP. You do not choose your TDU; it is set by where you live. When the lights go out, you call the TDU, not your REP.
Base Charge
A flat monthly fee you pay no matter how little power you use — often $9.95. On a low-usage month it can quietly double your effective rate. Always check for it.
Your Plan & Contract
The documents that spell out what you actually agreed to. The EFL is the one that matters.
EFL (Electricity Facts Label)
The one-page document that shows your real average price at 500, 1,000, and 2,000 kWh. It is the nutrition label for a plan — and it is where the truth lives. If a rate looks too good, the EFL tells you why.
Fixed-Rate Plan
Your price per kWh stays the same for the whole contract term. Predictable, and usually the right call for most Texans who want no surprises.
Variable-Rate Plan
Your price can change month to month — the provider decides, not you. Great intro rate, then it drifts up. This is where most "my bill doubled" stories start.
Term Length
How many months the contract locks you in — usually 12, 24, or 36. Longer is not automatically better; it just means you are committed for longer.
ETF (Early Termination Fee)
What you pay to leave a contract early — often $150–$295. There is one legal exception: you can leave penalty-free when you move. Providers do not advertise that.
TOS (Terms of Service)
The full contract behind the EFL — fees, deposit rules, and what happens when the term ends. Boring, but the auto-renewal language lives here.
The Traps
Marketing language engineered to make a bad rate look good. This is the section providers wish we would not write.
Bill Credit
A dollar credit you only get if your usage lands in an exact window — say, $100 off but only between 1,000 and 2,000 kWh. Use 999 kWh and the credit vanishes, and your effective rate can jump 5¢. The credit is the trap, not the deal.
Teaser Rate
A low headline rate advertised at exactly 1,000 kWh — the one usage level almost nobody actually hits. At 1,100 kWh the math changes completely. Always read the EFL at your real usage.
"Free Nights & Weekends"
The free hours are paid for by a much higher daytime rate — often 18¢+ per kWh. Unless you run your life after 9pm, you usually pay more overall. Free is never free.
Introductory Rate
A promo price good for the first month or two, then it rolls into a much higher rate. Read the EFL for the price after the intro period, not during it.
Minimum Usage Fee
A penalty — often $9.95 — for using too little power, usually under 500 or 1,000 kWh. Great for small apartments to watch out for.
Auto-Renewal / Holdover
When your term ends, many providers roll you onto a month-to-month variable rate — often their most expensive one. This is why checking your renewal date matters.
Usage & Your Meter
How Texas measures and identifies your electricity — the technical stuff that occasionally matters.
ESIID / ESI ID
The 17–22 digit ID that identifies the exact meter at your address — like a fingerprint for your electricity. It guarantees a quote matches your real service point, not a guess based on ZIP code.
Smart Meter
The digital meter on almost every Texas home. It records usage every 15 minutes and reports it automatically — which is what makes tools like Live Link able to see your real numbers.
Average Monthly Usage
Your typical kWh per month across the year. This is the single most important number for picking a plan, because it decides which rate is actually cheapest for you.
TDU Delivery Charges
The utility's fee for delivering power — a fixed monthly amount plus a per-kWh charge. It is the same for every REP in your area, so it is not where plans differ. Roughly 30–40% of your bill.
The Texas Market
The agencies and systems behind the scenes. Handy for understanding why Texas works the way it does.
Deregulation
Texas law that lets you choose your electricity provider instead of being stuck with one. It is the whole reason comparing plans is possible — and the reason there are 100+ plans to sort through.
ERCOT
The Electric Reliability Council of Texas — the operator that runs the state grid and keeps supply and demand balanced. When they call for conservation during a heat wave, it is worth listening.
PUCT
The Public Utility Commission of Texas — the regulator that licenses providers and handles complaints. Compare Power is licensed by the PUCT (BR190020).
Power to Choose
The state-run plan listing site. It is real, but it sorts by teaser rates and buries the EFL — so it is easy to pick a trap. That is exactly the gap Compare Power exists to close.
Switch Hold
A block that stops you from switching providers — usually from an unpaid balance or a required meter fix. It is resolvable; you just have to clear the underlying issue first.
TRUE Cost™
Compare Power's method: Total Real-Usage Evaluation. Instead of trusting the advertised rate at a fake 1,000 kWh, we calculate what a plan actually costs at YOUR real usage — every fee, credit, and gotcha included.
Now put it to work
Knowing the terms is step one. These tools do the math on your real numbers.
Decode your EFL
Paste any Electricity Facts Label and we translate it into your real monthly cost.
EFL AnalyzerFind your ESIID
Look up the exact meter at your address so a quote matches your real service point.
ESIID FactsSee TRUE Cost plans
Compare plans priced at your real usage — every fee and credit already in the math.
Compare PlansQuestions about the terms
Why does electricity in Texas have so much jargon?
Because confusing pricing is profitable. The more terms a provider can hide a fee behind, the harder it is to compare plans — and the easier it is to overcharge you. That is not your fault; the system was built this way.
Which term matters most?
The EFL (Electricity Facts Label). It shows a plan's real average price at three usage levels. If you only learn one term, learn to read the EFL at your usage — it defuses almost every trap on this page.
Do I need to understand all of this to switch?
No. That is the point of Compare Power — we do the TRUE Cost math so you don't have to memorize a glossary. This page is here for when you want to know why, not because you have to.
Skip the glossary. We'll do the math.
You don't have to become an electricity expert to stop overpaying. Enter your ZIP and we'll show you the TRUE cost of every plan — in about 5 minutes.