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Consumer's Dictionary for Electrical Competition

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Index

[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] [X] [Y] [Z]

 

- [A] -

Advanced Metering Device(s) for recording or communicating actual electric use during minutes, hours, days or weeks useful for time-of-day, on-peak/off-peak, or other billing rates.

Affiliate A company that is controlled by another or that has the same owner as another company.

Aggregator A buying group, licensed by the Public Utility Commission, that signs up a large number of consumers to bargain on their behalf for electricity and related services. The group "aggregates" or combines many smaller customers into one large customer for purposes of negotiation. It purchases the electricity as a single customer for the group.

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Base Load The minimum energy level a company must provide to its customers on a constant basis.

Basic Services Necessary for the physical delivery of service, including generation, transmission and distribution. The monthly customer charge and the temporary transition charge, are also basic service charges.

Broker A firm, licensed by the commission, that acts as an agent or "middle man" in the sale and purchases of electricity but never owns the electricity and typically does not own generating facilities.

Bulk Power Market Wholesale purchases and sales of electricity.

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- [C] -

Chapter 56 The Public Utility Commission’s regulations that establish rules for payment of utility bills, requests for service, payment of deposits, billing, termination of service and complaint handling. These regulations are to protect residential customers of regulated electric, gas, water, steam heat, and sewer companies in Pennsylvania.

Commission The Pennsylvania Public Utility Commission.

Consumer Contract Written agreement between a customer and a supplier.

Consumer Education Efforts to provide consumers with the skills, knowledge and understanding to shop effectively in the new electric market.

Customer Assistance Programs (CAPS) An alternative collection method that provides bill payment assistance to low-income payment-troubled utility customers.

Customer Charge Part of the monthly basic distribution charge to partially cover costs for billing, meter reading, equipment, service line maintenance and equipment. This charge is the same no matter how much electricity you use.

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Daily Peak The greatest amount of electricity used during a certain period in a day, such as one hour, half-hour or quarter-hour.

Demand The amount of electricity that customers use at any given moment or averaged over any certain period of time. It is a measure of the rate at which customers are using electricity.

Deregulation Removal or relaxation of regulations or controls governing a business or service operation such as utilities.

Distribution The local wires, transformers, substations and other equipment used to deliver electricity to end-use consumers from the high-voltage transmission lines.

Distribution Charges Part of the basic service charges on every customer’s bill for delivering electricity from the electric distribution company to your home or business. The distribution charge is regulated by the Public Utility Commission. This charge will vary according to how much electricity you use.

Distribution Line The local part of an electric system that delivers electricity to most customers.

Distributive Power A packaged power unit located at the point of demand. While the technology is still evolving, examples include fuel cells and photovoltaic applications.

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Electric Distribution Company (EDC) The company that owns the power lines and equipment necessary to deliver purchased electricity to the customer.

Energy Conservation To reduce or manage energy consumption in a cost-effective and efficient manner.

Energy Services Company (ESCO) A company offering specialized or customized energy services by providing advice and products to reduce customer consumption and bills.

Escape Provision A contract clause allowing a party to break a contract, usually with a penalty.

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Fixed Price A price which remains the same, usually for a set time period.

Flat Rate A fixed charge for goods and services that does not vary with changes in the amount used, volume consumed, or units purchased.

Formal Complaint A written dispute or disagreement about a utility problem filed by a consumer with the Public Utility Commission. A formal complaint is assigned to an Administrative Law Judge (ALJ) who holds hearings to develop a record. After the hearings, the judge issues a decision. (See informal complaint.)

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- [G] -

Generation Production of electricity.

Generation Charges Part of the basic service charges on every customer’s bill for producing electricity. Generation service is competitively priced and is not regulated by the Public Utility Commission. This charge depends on the contract between the customer and the supplier.

Green power or Greencos See renewables.

Grid A network for the transmission of electricity throughout the state, region or nation. The term is also used to refer to the layout of an electric distribution system.

Gross Receipts The total revenue for a calendar year for all electric distribution companies and electric generation suppliers which are derived from the sales of electric energy.

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Hourly Metering or Time of Use Metering Tracking or recording a customer’s consumption during specific periods of time that can be tied to the price of energy.

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- [I] -

Informal Complaint A dispute or disagreement about a utility problem filed by a consumer with the Public Utility Commission’s Bureau of Consumer Services (BCS). A BCS investigator reviews the informal complaint and provides the customer with a response to their dispute. Most responses are in the form of a decision that the customer or company can appeal. If an informal complaint is appealed, it becomes a formal complaint. (See Formal Complaint.)

Intangible Transition Charge Charges to utility customers to pay for special bonds that are used to refinance utility debt, thereby lowering overall costs for the utility and its customers.

Interruptible Rate A special utility rate given to those who agree to have their service reduced or temporarily stopped as part of an agreement with their electric supplier. Circumstances for service interruptions can be periods of high demand or high cost periods of short supply for the utility and/or system emergencies.

Investor-owned Utility A utility company owned and operated by private investors.

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Kilowatt (kW) (1) A measure of demand for power during a preset time--minutes, hours, days, months; (2) 1,000 watts.

Kilowatt-hour (kWh) The basic unit of electric energy for which most customers are charged in cents per kilowatt-hour.

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Load The amount of electric power required to meet customers’ use in a given time period.

Load Profile Measurements of a customer’s electricity usage over a period of time which shows how much and when a customer uses electricity. Load profiles can be used by suppliers and transmission system operators to forecast electricity supply requirements and to determine the cost of serving a customer.

Load Management Shifting use of electricity from periods of high demand to periods of lower demand, when the cost of electricity usually is lower.

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Marketer A company, licensed by the Commission, that buys and resells electricity, but that typically does not own generating facilities.

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- [N] -

Non Basic Services Not required for the physical delivery of electric service.

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Office of Consumer Advocate (OCA) A government office that represents the interests of residential utility consumers before the Public Utility Commission in rate and service cases and before other state and federal regulatory agencies and courts.

Office of Small Business Advocate (OSBA) A state government office that represents the interests of small business consumers by participating in PUC rate cases and other state and federal regulatory cases.

Off-Peak/On-Peak Blocks of time when energy demand and price is low (off-peak) or high (on-peak).

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Pancaking The effect of adding on charges as power moves through several transmission systems.

Pilot A utility program offering a limited group of customers their choice of certified or licensed energy suppliers on a one year minimum trial basis.

Power Pool Combining electric power supplies. Two or more interconnected electric systems planned and operated to supply power in the most reliable and economical manner. (POOLCO)

Price Cap A level above which regulated prices may not rise.

Price to Compare Kilowatt-hour amount a consumer uses to compare prices and potential savings among generation suppliers.

Provider of Last Resort The company providing generation services to those who do not choose another supplier, are unable to find a supplier willing to serve them or for some reason no longer receive generation services from another supplier.

Public Input Hearings Meetings where consumers can give input to the PUC. Sworn or unsworn testimony to the PUC judge and to the utility, consumer advocate and PUC staff. The PUC conducts hearings in the service area of the utility that requested the rate increase. Sometimes consumers can point out problems with the quality of the utility’s service, management, or policies which could affect the outcome of a case.

Public Utility Code The law which sets the powers and duties of the PA Public Utility Commission. It also sets many of the guidelines the PUC uses for utilities' rates and service standards.

Public Utility Commission (PUC) The state regulatory agency that provides oversight, policy guidance and direction to electric public utilities.

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- [R] -

Real-time Pricing Rates that reflect the actual moment by moment cost of providing electricity.

Regulation A rule or law established by the federal or state government which sets procedures that a utility must follow.

Reliability The providing of adequate and dependable generation, transmission and distribution service.

Renewables Resources used to generate electricity that are capable of being replaced naturally. This includes fuels and technologies such as solar photovoltaic energy, solar thermal energy, wind power, low head hydro power, geothermal energy, landfill and mine based methane gas, energy from waste and sustainable biomass energy.

Resellers Companies that purchase utility service from a wholesaler and resell it to consumers.

Restructuring The reorganization of traditional monopoly electric service to allow operations and charges to be separated or "unbundled" into generation, transmission, distribution and other services. This permits customers to buy generation services from competing suppliers.

Retail Wheeling Also known as retail customer choice--A utility company is required to transport electricity from a generating plant it does not own directly to its retail customers. This gives retail customers the ability to purchase electricity from sources they choose.

Retail Customer Choice See Retail Wheeling

Rural Electric Cooperative Customer-owned electric utility that distributes electricity to members and that receives lower-cost financing through the federal government.

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- [S] -

Securitization A method of refinancing existing utility debt and equity, that results in lower financing costs which are passed on to the utilities’ customers.

Shopping Credit Kilowatt-hour amount a consumer uses to compare prices and potential savings among generation suppliers.

Spot Market Short-term purchases of electricity from surpluses available for a short time.

Stranded investments or stranded costs A utility investment, such as in facility and equipment, that is not supported by market prices.

Supplier(Electric Generation Supplier--EGS) A person or corporation, generator, broker, marketer, aggregator or any other entity, that sells electricity to customers, using the transmission or distribution facilities of an electric distribution company (EDC).

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- [T] -

Terms of Service Content of the agreement between a customer and a supplier.

Title 52 The section of the Pennsylvania Code that governs utilities.

Transition Charge A temporary charge on every customer’s bill designed to recover an electric utility’s transition or stranded costs set by the Public Utility Commission. Most of this charge is not new; it has always been part of your rates.

Transmission Interconnecting electric lines which move high voltage electricity from a generation facility to the distribution lines of an electric distribution company.

Transmission Charges Part of the basic service charges on every customer’s bill for transporting electricity from the source of supply to the electric distribution company. The Federal Energy Regulatory Commission regulates retail transmission prices and services. This charge will vary with your source of supply.

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- [U] -

Unbundling Breaking down electric services offered into parts so each part can be billed separately.

Universal Service Policies, protections and services that help low-income customers maintain electric service.

Utility Competition Two or more electric suppliers offering the same or similar goods or services in the same market place.

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- [V] -

Variable Price A price which can change, by the hour, day, month etc.

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- [W] -

Weatherization Modifying a home or building to conserve energy. Methods include: sealing window and doorframes with caulking or gaskets, installing storm doors and windows, and adding or increasing the insulation.

Wheeling The transmission of power that has been generated by one entity over the lines of another utility system.

Wholesale Competition A market structure in which wholesale buyers can choose their electricity suppliers. Wholesale buyers, such as investor-owned utilities, municipal utilities, cooperatives, and other energy suppliers, resell the electricity to their retail customers.

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- [X] -- [Y] -- [Z] -

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Disclaimer: All information that appears on this website is merely an electronic representation and is not the officially filed information. The official documents reside in the File Room of the Public Utility Commission in 2-North, on the second floor of the Commonwealth Keystone Building in Harrisburg and are available for public inspection during normal business hours