NRG Terms & Definitions

Terms and Definitions

Making sense of the terminology in the energy industry can be difficult. You shouldn't have to consult an electricity expert every time you peer at your bill. The terms and definitions below will help you understand some of the more complicated words and phrases you may come across.

man using tablet

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. (P.U.C. Substantive Rule 25.479)

Base Charge — A charge assessed during each billing cycle without regard to the customer’s demand or energy consumption. (P.U.C. Substantive Rule 25.479)

Competition Transition Charge — A charge assessed to recover a TDU’s charges for non-securitized costs associated with the transition to competition. Acceptable abbreviation: Competition Transition. (P.U.C. Substantive Rule 25.479)

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 designed period, during the billing cycle. (P.U.C. Substantive Rule 25.479)

Energy Charge — A charge based on the electric energy (kWh) consumed. (P.U.C.  Substantive Rule 25.479)

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.  (P.U.C. Substantive Rule 25.479)

kW — Kilowatt, the standard unit for measuring electricity demand, equal to 1,000 watts. (P.U.C.  Substantive Rule 25.479)

kWh — Kilowatt-hour, the standard unit for measuring electricity energy consumption, equal to 1,000 watt-hours. (P.U.C. Substantive Rule 25.479)

Late Payment Penalty — A charge assessed for late payment in accordance with Public Utility Commission rules. (P.U.C. Substantive Rule 25.479)

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. (P.U.C. Substantive Rule 25.479)

Miscellaneous Gross Receipts Tax Reimbursement — A fee assessed to recover the miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than 1,000. Acceptable abbreviation: Gross Receipts Reimb. (P.U.C. Substantive Rule 25.479)

Nuclear Decommissioning Fee — A charge assessed to recover a TDU’s charges for decommissioning of nuclear generating sites. Acceptable abbreviation: Nuclear Decommission. (P.U.C.  Substantive Rule 25.479)

PUC — Public Utility Commission.

PUC Assessment — A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act. (P.U.C. Substantive Rule 25.479)

Sales tax — Sales tax collected by authorized taxing authorities, such as the state, cities and special purpose districts. (P.U.C. Substantive Rule 25.479)

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. (P.U.C. Substantive Rule 25.479)

TDU — Transmission and distribution utility. (P.U.C. Substantive Rule 25.479)

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. (P.U.C. Substantive Rule 25.479)

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. Acceptable abbreviation: TDU Surcharges. (P.U.C. Substantive Rule 25.479)

Transition Charge — A charge assessed to recover a TDU’s charges for securitized costs associated with the transition to competition. (P.U.C. Substantive Rule 25.479)