Light Bill Terms, Explained

A one-time charge to get your lights turned on. Covers the paperwork and flipping the switch at your meter.

Example: Most light companies charge $5-30 to connect you. This is separate from any deposit.

When the light company turns off your power. Can happen if you don't pay your bill (traditional plans) or run out of balance (prepaid). Getting reconnected usually takes a few hours to a day.

Example: If your lights got cut off for non-payment, you'll need to pay the past-due amount plus a reconnection fee.

A fixed amount added to your account every single day, whether you use power or not. Common on prepaid plans. Adds up fast.

Example: A $1.50 daily fee means you're paying $45/month before you even turn on a light.

Parts of Texas where you get to pick your own light company. Multiple companies compete for your business, so you have options on rates and plans.

Example: Houston, Dallas, Fort Worth: deregulated. Austin, San Antonio: not. If you're in a deregulated area, you have choices.

Money a light company holds onto when you get started. They want it if your credit isn't great. Usually get it back after 12 months of paying on time.

Example: One company might want $400 from you, another might want nothing. Deposit rules vary. That's why we check multiple companies.

Electricity Facts Label. A one-page document Texas requires that shows what a plan actually costs. Shows the rate at 500, 1000, and 2000 kWh usage, plus all the fees. The advertised rate and the EFL rate are often very different.

Example: A plan advertised at 8 cents might be 12 cents on the EFL once you add fees. Always check the 1000 kWh number.

The organization that runs the Texas power grid. They keep the lights on across most of the state. When there's a big storm and they tell companies to cut power, that's ERCOT.

Example: During the 2021 freeze, ERCOT ordered blackouts to keep the whole grid from going down.

Kilowatt-hour. How they measure how much power you use. Your light bill is mostly based on how many kWh you used that month. Average Texas home uses around 1,000-1,200 kWh.

Example: Your AC alone might use 300-500 kWh in a hot month. That's why summer bills are brutal.

Your monthly electric bill. Called a "light bill" because back when electricity was new and expensive, people only used it for lights.

Example: A typical summer light bill in Texas runs $150-250 for an apartment, more for a house.

The company you pay your light bill to. Officially called a "Retail Electric Provider" or REP. In deregulated areas, you get to pick which one you want.

Example: Payless Power, TXU, Reliant are all light companies. You can switch between them without losing power.

A city-owned light company. If you're in their area, they're your only option. No shopping around.

Example: Austin Energy and CPS Energy (San Antonio) are municipal utilities. You can't pick a different light company there.

A plan that doesn't look at your credit history when you sign up. Prepaid plans are always no credit check because you pay upfront. Some traditional plans also skip the check if you meet other requirements.

Example: Most pay-as-you-go plans are no credit check. You put money down, you get lights. No score needed.

The three main power line companies (TDUs) in Texas. Oncor handles Dallas/Fort Worth, CenterPoint handles Houston, TNMP covers various other areas. They're who you call when the power goes out.

Example: Tree on your power line? That's a TDU call, not your light company.

You add money first, then use it. No credit check, no deposit. Your balance drops each day based on what you use. Run out of money, your lights cut off. Add more money, they come back on.

Example: Start with $50. Might last 1-2 weeks depending on usage. Get text alerts when you're running low. Top off whenever.

Public Utility Commission of Texas. The state agency that writes the rules for light companies and handles complaints. If a company treats you wrong, this is who you report them to.

Example: Light company won't release your deposit? File a complaint with the PUCT.

Getting your lights turned on the same day you pick a plan. Usually available with prepaid plans. Traditional plans typically take until the next business day.

Example: Pick a prepaid plan before 2pm and you might have lights by dinner. Weekend? Prepaid is your best shot.

Another name for prepaid light companies. They work with you when traditional companies won't because of credit or past bills.

Example: Got denied by TXU? A second chance company like Payless Power will still take you.

A block on your address because you owe money to a previous light company. While it's there, nobody can turn on your lights. Not even prepaid. You have to settle with whoever placed it first.

Example: Owe $300 to your old light company? They can put a switch hold on your address. Pay up or work out a payment plan to clear it.

The company that owns the actual wires and poles. Oncor in Dallas/Fort Worth, CenterPoint in Houston. You don't pick them. Everyone in an area has the same one. When a line goes down, they fix it.

Example: Power out in a storm? Call your TDU, not your light company. Oncor: 888-313-4747. CenterPoint: 800-332-7143.

Adding money to your prepaid account. You can set up auto-reload so you don't have to think about it.

Example: Balance getting low? Top off online, by phone, or at a pay station. Auto-reload adds money automatically when you hit a certain balance.

How much power you use, measured in kWh. This is the biggest part of your bill. Summer AC and winter heating drive it up.

Example: A 1,500 sq ft place might use 800 kWh in April but 1,500 kWh in August. That's Texas.