Electric Charge
At least 3 electricity cost components.
Energy, Capacity, Transmission, Ancillary, RPS, Line Losses, Other (GRT, SUT, CES, ZEC, CPES, TOTS, TEC)
A system in which a third party (typically a utility or delivery company) assumes the risk in a commodity transaction. This typically expedites credit approval.
What is Purchase of Receivables (POR)?
An entity that arranges the sale and purchase of electric energy, transmission, and other services between buyers and sellers, but does not take title to any of the power sold.
What is a broker?
An electrical device for changing the voltage of alternating current.
What is a transformer?
The amount of electric power delivered or required for which a generator, turbine, transformer, transmission circuit, station, or system is rated by the manufacturer.
What is capacity?
An entity that provides electric service to a retail or end-use customer.
What is an Electric Service Provider?
The federal body that regulates interstate transmission of gas and electricity.
What is the Federal Energy Regulatory Commission (FERC)?
A specified period of time for which customers must remain on utility/default supply after establishing a new account or being returned to utility/default supply.
What is minimum stay?
It refers to the cost and/or process of building and maintaining transmission poles and wires to transport electricity from generating facilities to the grid.
What is transmission (NITS)?
The rate at which electric energy is consumed by a customer at a given instant or averaged over any designated period of time. It is typically expressed in kW or MW.
What is demand?
Any marketer, broker, public agency, city, county, or special district that combines the loads of multiple end-use customers in facilitating the sale and purchase of electric energy, transmission, and other services on behalf of these customers.
What is an aggregator?
The amount of electric power delivered or required at any specific point or points on a system. The requirement originates at the energy-consuming equipment of the consumers.
What is load?
Necessary services that must be provided in the generation and delivery of electricity
What are ancillary services?
The maximum load during a specified period of time.
What is peak demand?
Arrangement through a contract for the delivery of a commodity at a future time and at a price specified at the time of purchase. The price is based on an auction or market basis. This is a standardized, exchange-traded, and government regulated hedging mechanism.
What is the futures market?
The layout of an electrical distribution system.
What is the grid?
In capacity markets (non-ERCOT), each customer is assigned THIS based upon their level of usage when the system reaches peak demand. This usually, but not always, occurs on the hottest day of the summer.
What is Capacity Peak Load Contribution (Cap PLC or ICAP)?
A corporation, person, agency, authority, or other legal entity or instrumentality that owns and/or operates facilities within the United States, its territories, or Puerto Rico for the generation, transmission, distribution, or sale of electric energy primarily for use by the public.
What is a utility?
An independent, federally-regulated entity that coordinates regional transmission in a non-discriminatory manner and ensures the safety and reliability of the electric system.
What is an Independent System Operator (ISO)?
Allowing all customers to purchase kilowatt-hours of electricity from any of a number of companies that compete with each other.
What is customer choice?