Billing Terms

Frontier Utilities displays a number of billing terms, approved by the Public Utility Commission of Texas (PUCT), on our statements. Terms that appear on both Residential and Commercial statements and their definitions, including the approved abbreviations, are listed below. 

The PUCT website provides information on other fees that may appear on your invoice.  

PUCT Billing Terms

Advanced Metering Systems Surcharge

A PUC-authorized charge for electric delivery companies to recover the costs for their Advanced Metering Systems. This charge will be shared among all electricity users who receive an Advanced Meter. Your monthly charge will be added to your electricity bill for the next several years. For more information, contact your Retail Electric Provider.

Amount Due

Balances from the preceding bill, payments made since the preceding bill, total amount due and a checkbox for the customer to voluntarily donate money to the bill payment assistance program.

Base Charge

A flat fee applied each month regardless of the amount of kilowatt-hours (kWh) used.

Changes in Rates

Any change in the customer's rates or charges due to the variable rate feature of the Terms of Service contract.

City Sales Tax

Sales tax collected by authorized taxing authorities, such as the state, cities, and special purpose districts.

Competition Transition Charge

A charge assessed to recover a TDU's charges for non-securitized costs associated with the transition to competition.

Current Charges

The current charges for electric service as disclosed in the customer's terms of service document, including applicable taxes and fees. If the customer is on a level or average payment plan, the level or average payment due shall be clearly shown in addition to the current charges.

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.

Energy Charge

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

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.

kW (Kilowatt)

The standard unit for measuring electricity demand; equal to 1,000 watts.

kWh (Kilowatt-hour)

The standard unit for measuring electricity consumption; equal to 1,000 watt-hours.

Late Payment Penalty

A one-time penalty of not more than 5% may be charged on a delinquent bill. Outstanding delinquent balances cannot be re-penalized. Penalty does not apply to residential or small commercial customers of the Provider of Last Resort (POLR).

Meter Charge

A charge assessed to recover a TDU's charges for metering a customer's consumption, to the extent that the TDU is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.

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 1000.

Monthly Service Fee

A monthly charge that may be assessed based on the customer’s energy consumption, applied to cover costs of billing, administration, and customer care from Frontier Utilities.

Multiplier

The number used by the TDU to help determine the total power usage (kWh) for the month; it has no impact on the price the customer pays per kWh of electricity. Most Residential and Small Commercial premises have a Multiplier of “1.”

Example:
• Current Meter Reading 1000 kWh
• Minus (-)
• Previous Meter Reading 0 kWh
• Times (*)
• Multiplier 1
• Equals (=)
• Total Monthly Usage 1000 kWh

New Services or Products

Notice of any new products or services being provided to the customer since the pervious bill.

Non-recurring Charges

Identifies and itemizes any non-recurring charges such as late fees, returned check fees, restoration of service fees, or other fees disclosed in the Retail Electric Provider's terms of service contract provided to the customer.

Nuclear Decommission Fund Fee

Fee that covers the cost of safely removing a nuclear generation facility from service, reducing residual radioactivity to a level that permits release of the property for unrestricted use and termination of license. Only the local wires company or transmission and distribution utility can assess this fee to any company that uses its wires to deliver electricity to consumers.

PUC Assessment

A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act.

The PUCT imposes an Assessment Fee on utility companies for each customer's service address, in order to cover the costs of its activities on behalf of consumers. Frontier Utilities and TDUs pass this amount through to their customers for reimbursement.

Recurring Charges

Identifies and itemizes any recurring charges other than for electric service.

REP Charges

Retail Electric Providers may bundle all charges associated with your electric service into the price per kWh or they may separate the charges using the following.

System Benefit Fund

A non by-passable charge set by the PUC, not to exceed 65 cents per megawatt hour. Pays for energy efficiency and customer education programs.

TDU Delivery Charges

Charge to cover the cost of moving electricity from the generation plant to your home.

These charges vary, may change from time to time, and are set by a complex schedule of rates and charges that are regulated by the PUCT.

Transition Charge

Utilities are allowed to securitize or refinance their regulatory assets and/or stranded costs (assets that become uneconomical as a result of deregulation) as long as it benefits ratepayers. Securitizing debt provides funding at a lower cost than traditional utility funding. Utilities are also allowed to recover the transaction costs of securitization through this fee.

Transmission and Distribution Utility (TDU)

The company that owns or operates the equipment or facilities — poles, wires, meters, etc. — to deliver electricity to a service location.

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.