Vocabs you will see, Let us explain !!!
- Luca Roswora
- Apr 22
- 3 min read
Electricity bills can be confusing, filled with industry jargon and technical terms that make it hard to understand what you’re actually paying for. At PWRChoice, we believe in transparency and want to help you decode your electricity bill. Here’s a breakdown of the most important terms you’ll find on your bill and in electricity contracts.
A
Auto Pay – A recurring automatic payment system where your bill is paid directly from a credit card or bank account to ensure on-time payments.
Average Billing – Also called budget billing, this option smooths out seasonal fluctuations by averaging your electricity usage over time, so you pay a more consistent amount each month.
B
Blackout – A total loss of power supply, which can be planned or unplanned.
Blend and Extend – A method of restructuring a current contract without penalties, securing a lower rate for a longer period.
Brownout – A partial reduction in electrical power availability, often due to high demand.
C
Competitive Energy Market – A deregulated market where customers can choose their electricity provider instead of being assigned a default utility company.
Conservation Request – A voluntary appeal to reduce energy consumption during peak demand to prevent outages.
Contract Renewal – Extending your current electricity plan with the same provider, often at a higher rate.
E
Effective Rate – Your total cost per kilowatt-hour (kWh) after including all charges, such as delivery fees and taxes.
EFL (Electricity Facts Label) – A document outlining key details of your electricity plan, including rates, contract length, and fees.
Electric Cooperative (CO-OP) – A nonprofit entity that provides electricity to its members, often in rural areas where deregulation does not apply.
Electric Grid – The system that transmits and distributes electricity from power plants to homes and businesses.
Electricity Delivery Charges – Fees for maintaining the power grid, including poles, wires, and other infrastructure.
Energy Broker – A third party that helps businesses or individuals find electricity plans.
Energy Charges – The cost of electricity usage, measured in kWh.
ESIID (Electric Service Identifier ID) – A unique 17- or 22-digit number assigned to your service location.
ETF (Early Termination Fee) – A charge for canceling your electricity plan before the contract ends.
F
Fiduciary – A person or organization that acts in your best financial interest when making decisions about your energy plan.
Fixed Rate – A stable rate per kWh that remains the same for the duration of your contract.
K
kWh (Kilowatt Hour) – A unit of electricity measurement that determines your total energy usage.
P
POLR (Provider of Last Resort) – A backup electricity provider assigned when a supplier goes out of business, often with higher rates.
papowerswitch.com– A state-run website that allows Pennsylvanian residents to compare electricity plans.
Prepaid Plan – A plan where you pay for electricity before usage, often with higher rates and the risk of sudden disconnection.
R
Renewable Energy (Green Energy) – Power sourced from solar, wind, or other sustainable resources.
Renewable Energy Credit (REC) – A certificate proving that electricity was generated from renewable sources.
REP (Retail Electricity Provider) – A company that sells electricity in deregulated markets.
S
Smart Meter – A digital electricity meter that records real-time usage and communicates with utility companies.
Solar Buyback Plans – Plans that allow customers with solar panels to sell excess electricity back to the grid for bill credits.
T
TDSP (Transmission Distribution Service Provider) / TDU (Transmission Distribution Utility) – The entity responsible for maintaining the infrastructure that delivers electricity.
Teaser Rate – A promotional low rate that later shifts to a variable or higher rate.
Time of Use Plan – A plan where electricity rates fluctuate based on the time of day.
Transfer of Service – Moving your electricity service from one address to another.
V
Variable Rate – A rate that fluctuates based on market conditions, which can lead to unpredictable bills.
Understanding Your Bill and Your Options
Navigating electricity bills and contracts can be challenging, but understanding these key terms can help you make informed decisions. At PWRChoice, we analyze all the fine print for you and ensure you’re on the best possible plan. If you ever have questions about your bill, contract, or energy plan, our team is here to help!
📩 Need assistance? Contact us today and let us find the best electricity plan for you!
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