Deregulation is the opening of a market to competition in a previously regulated industry. Texas Senate Bill 7, on January 1, 2002, created a deregulated electricity industry in Texas, allowing many consumers the opportunity to buy electricity from any Retail Electricy Provider (REP) they choose. Many consumers no longer have only one option for electricity. They can shop around for the best plan and, in many cases, lower their electric bill. Not all of Texas was deregulated. Certain municipalities still have an entity that continues to provide their electric service, but approximately 75% of Texas is deregulated.

The main change occurred when the large companies that previously had a monopoly on the electricity business were forced to split divisions into their specialties. They divided into three parts — Generation (making the electricity), Transmission and Distribution "TDSP" (transporting the electricity from the generator to the home or business) and Retail (buying wholesale electricity and selling and billing individual customers). Other companies were created at this time to also compete in the Retail portion of the electricity business as Retail Electric Providers (REPs). You now get to choose a REP who buys bulk electricity and sells to you — while the electricity is still delivered to you as reliably as ever, over the same wires you have always had.

No. Your electricity will always be delivered via the same wires and meter you have now.

If you have a meter which has spinning visible discs (dial meter), you must read the dials. Write down the number that the pointer has just passed. This can be tricky as the dial pointers do not all travel in the same direction. The first, third and fifth dials are numbered clockwise, while the second and fourth dials are numbered counterclockwise. If a hand is directly on a number, look at the dial to its immediate right. If that dial's hand has just passed zero, write down the number that the left dial is pointing to. If the dial to the right has not passed zero yet, write down the last number that the dial on the left has passed. If you have a new "Smart Meter" with digital numbers, you simply read them as displayed.

The current reading can be used to determine how much electricity you have used since your last bill. Simply subtract last month's reading from the reading you took from your meter. The result is the number of kilowatt-hours you have used since your last reading.

When shopping for electricity, you will run across quite a few acronyms and terms. Here are a few more common ones. If you need more info, please feel free to call Frontier Customer Care at 1-866-926-8192.

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.

EFL – Electricity Facts Label

A document provided with any product which clearly states the average rate at 500 kWH, 1000 kWh and 2000 kWH usages. The rates should include ALL recurring charges that you will incur.

Energy Charge

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

ERCOT – Electricity Reliability Council of Texas

ERCOT operates the huge electric grid and manages the deregulated market. They make sure there is ample energy in the grid at all times to supply demand.

ESI or ESIID – Electric Service Identifier ID

This is a number which identifies the service location. It never changes and will always identify that specific geographic location, even if a meter is changed or removed.

Late Payment Penalty

A charge assessed for late payment in accordance with Public Utility Commission rules.

kW

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

kWh – Kilowatt Hour

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

PUC or PUCT – Public Utility Commission of Texas

This is the governing body that makes electricity rules in the state of Texas. They have authority over everything from generation to retail.

REP – Retail Electric Provider

A REP sells electricity to retail customers in the areas of Texas that have been deregulated. A REP buys wholesale electricity, delivery service, and related services, prices electricity for customers, and sells electricity at retail.

TDSP – Transmission and Distribution Service Provider

The local wires and poles company that is responsible for making sure that you get power at your home or business. They are responsible for everything involving the wires, poles and your meter. For example, CenterPoint Energy is the TDSP in the Houston area — in Dallas it is Oncor).

TOS – Terms of Service

The TOS is a document outlining all the terms and conditions related to electricity service. These rules set out the rights and responsibilities of both Frontier and the customer.

Fixed Term or Guaranteed Plans

You pay a single rate for a specified amount of time. The rate will not go up or down for the length of the term.

Month-to-Month Variable Rate Plans

You are not locked into any long-term contract and your rate may vary from month to month.

Pay in Advance Plans

You are billed in advance of using electricity. To get started, you make a payment to cover the first month's usage and then are billed in advance of each proceeding month.

Pay As You Go Plans

Your purchase energy by the kilowatt hour at a set price. When your energy supply is nearing exhaustion, we'll send you a notification via email or text message to let you know how much electricity you have remaining.

What is a Green Plan?

A green plan is a renewable energy product that comes from a source that can be replenished in nature. Much of the electricity generation comes from coal or natural gas, but a green or renewable plan insures your electricity comes from a source such as wind, hydro, solar, etc. The most common renewable energy available in Texas is wind energy.

What are my deposit waiver options?

If you do not meet the deposit exception requirement or demonstrate a satisfactory credit history, you may be required to pay a deposit in order for your service to start with Frontier.

However, you may be eligible for a deposit waiver. A deposit may be waived if:

1) You provide an acceptable Utility Credit History (Credit Reference) Letter

Please provide a copy of your Utility Credit History (Credit Reference) Letter with your previous electric provider indicating you have made not more than one (1) late payment in the last twelve (12) months.

Include your Frontier Utilities account number with the documentation.

Send to Frontier Utilities via fax to: 866-926-8193 or email to: lettersofcredit@frontierutilities.com.

Your request for service will be processed when your documents are received and approved by Frontier Utilities, which may take 24 – 48 hours from date of receipt.

2) You are 65 years of age or older and you are not currently delinquent in payment of any electric service account

Please provide a copy of your valid Driver’s License and your last month’s electricity bill from your current provider indicating that you are not currently past due.

Include your Frontier Utilities account number with the documentation.

Send to Frontier Utilities via fax to: 866-926-8193 or email to: lettersofcredit@frontierutilities.com.

Your request for service will be processed when your documents are received and approved by Frontier Utilities, which may take 24 – 48 hours from date of receipt.

3) You provide acceptable evidence you are a Victim of Family Violence

Please complete a Victim of Family Violence Form.

The Victim of Family Violence, as defined in the Texas Family Code section 71.004, must be completed by a certifying entity. The following are considered a “certifying entity”:

Family Violence Center
Treating Physician or Medical Personnel
Law Enforcement Personnel
Office of Texas District Attorney, County Attorney, the Attorney General
Grantee of the Texas Equal Access to Justice Foundation when you submit a certification letter from the Texas Council of Family Violence.

Include your Frontier Utilities account number with the documentation.

Send to Frontier Utilities via fax to: 866-926-8193 or email to: lettersofcredit@frontierutilities.com.

Your request for service will be processed when your documents are received and approved by Frontier Utilities, which may take 24 – 48 hours from date of receipt.