Glossary of Terms
Energy Choice: Business owners have been able to shop Texas electricity supply rates since Texans gained the ability to choose their desired energy company in 2002. The electric industry divided into two parts: supply and delivery. Retail energy companies in Texas compete for business as the supplier of power, offering a variety of term agreements and supply rates for consumers to choose from. (Source)
Power to Choose: The power to choose supply rates from retail energy companies in Texas extends to businesses and residents and is offered in various plans and pricing options. This refers to electrical providers only, not utility companies. (Source)
Renewable Energy: Renewable energy is energy that is collected from renewable resources, which are naturally replenished on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat. Renewable energy often provides energy in four important areas: electricity generation, air and water heating/cooling, transportation, and rural (off-grid) energy services. (Source)
Carbon Neutral: Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset, or buying enough carbon credits to make up the difference. It is used in the context of carbon dioxide releasing processes associated with transportation, energy production, and industrial processes such as production of carbon neutral fuel. (Source)
Carbon Credits: A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one ton of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent (tCO2e) equivalent to one ton of carbon dioxide. (Source)
Green Tags: Green tags are non-tangible energy commodities traded in the United States. A single green tag represents proof that 1-megawatt-hour (MWh) of electricity was generated from a renewable energy source recognized in the United States. A green tag can be sold and bartered and its owner can claim to have purchased renewable energy. Green tags are also known as Renewable Energy Certificates (RECs), Renewable Energy Credits, or Tradable Renewable Certificates. (Source)
Renewable energy credit: (REC) is a certificate corresponding to the environmental attributes of energy produced from renewable sources such as wind or solar. RECs were created as a means to track progress towards and compliance with states’ Renewable Portfolio Standards (RPS), meant to support a cleaner generation mix.