Here are definitions of common electricity supply and utility terms:
Arrearage: An amount of money owed, usually referring to overdue utility bills.
Base Load: The amount of electricity needed to meet minimum demand based on reasonable expectations of customer requirements at any point in time.
Broker: A licensed entity or individual that acts as an agent or go-between in the sale and purchase of electricity but never owns the electricity.
Daily Peak: The greatest amount of electricity used during a period in a day, such as an hour or half-hour; this term is often used with time-of-use metering.
Default Service (Standard Offer Service): Electric power that an electric company must offer to its customers under law.
Demand: The amount of electricity customers use at a given moment or averaged over a period; it measures the rate at which customers use electricity.
Deregulation (Restructuring): The reorganization of regulated electric service to allow operations and charges to be unbundled so that generation, transmission, distribution and other services can be provided by competitive retail suppliers.
Distribution: The delivery of electricity to customers from substations through lower-voltage lines.
Distribution Charge: The charge for delivering electricity from the transmission system to the customer over poles and wires, including equipment and maintenance.
Distribution Line: A power line that delivers electricity at relatively low voltages from the substation to customers.
Electric Company (Utility): A public utility that owns and operates facilities for the generation, transmission, or distribution of electricity for sale.
Electric Distribution Company (EDC): The company that owns and maintains the wires and equipment necessary to deliver electricity to homes and businesses.
Electricity Supplier: A company that sells electricity and related services to retail customers; it may also be called an electricity generation supplier.
Energy Conservation: The practice of reducing energy use through efficiency measures and thoughtful consumption to decrease costs and environmental impact.
Fixed Price: An electric service plan where the price per kilowatt-hour is fixed for a set period of time.
Flat Rate: An electric service plan that charges a fixed rate regardless of the amount of electricity used.
Generation: The process of producing electricity from fuel or other energy sources.
Generation Charge: A charge for producing electricity and moving it onto the transmission system; it reflects the cost of purchasing power from generators.
Green Power: Electricity generated from renewable energy sources such as wind, solar, biomass, landfill gas, or hydroelectric.
Grid: The network of transmission and distribution lines, substations, transformers and more that deliver electricity from producers to consumers.
Hourly Metering: A metering system that records electricity use for each hour or other interval and enables time-of-use rates.
Kilowatt (kW): A unit of power equal to 1,000 watts.
Kilowatt-hour (kWh): A unit of energy equal to one kilowatt of power used for one hour.
Load: The amount of electric power required by a customer or group of customers at a given time.
Load Profile: A chart or data set showing a customer’s electricity use over time; used to determine the pattern of demand.
Load Management: Techniques used by utilities and customers to control or reduce peak demand and overall consumption.
Off-Peak/On-Peak: Times when the demand for electricity is lower (off-peak) or higher (on-peak), often reflected in varying prices.
Real-Time Pricing: A rate structure in which the price of electricity changes hourly or more frequently, reflecting market conditions.
Renewable Energy: Energy derived from natural sources that are replenished constantly, such as solar, wind, hydro, biomass and geothermal.
Restructuring: See Deregulation.
Retail Electric Customer: An end user that purchases electricity for its own use.
Retail Electricity Supplier: A company that sells electricity services directly to retail customers.
Smart Meter (Advanced Metering Device): A digital meter that records electric use in small time increments and can communicate data automatically to the utility.
Spot Market: The wholesale market for immediate delivery of electricity at current market prices.
Standard Offer Service: See Default Service.
Sustainable: Practices that meet present needs without compromising the ability of future generations to meet theirs, often associated with renewable energy.
Time of Use (TOU): A rate structure where the price per kilowatt-hour varies depending on the time of day and sometimes the season.
Transmission: The movement of electricity from generating facilities to distribution systems over high-voltage lines.
Transmission Charge: A charge for moving electricity over high-voltage transmission lines from generators to distribution networks.
Usage: The total amount of electricity a customer consumes during a given period.
Utility: A company or public agency that provides services such as electricity, water or natural gas to customers.