Glossary

An electric flow that reverses its direction at regular recurring intervals. Each forward-backward motion interval is called a cycle. Electric current in the United States alternates with a frequency of 60 hertz or cycles per second.

After the Natural Gas Competition and Deregulation Act of 1997 went into effect, Atlanta Gas Light Company became a pipes-only company when it elected to open its territory to competition in 1998. The fees it charges for its gas distribution service are regulated by the PSC and passed through to the customer.

A colorless, odorless, nonflammable gas formed during decomposition, combustion and respiration. CO2 is used in food refrigeration (dry ice), carbonated beverages (the bubbles and fizz), fire extinguishers and aerosol cans. Whenever something burns -- such as gasoline, wood or a candle -- CO2 is produced from the available oxygen combined with the carbon in the fuel.

The completed path traveled by an electric current.

An automatic switch that operates like a fuse and interrupts a circuit when abnormal or dangerous conditions are present.

A non-profit utility that is owned and operated by the city it serves, and answers to the City Government (not the State or Federal governments). In Texas, city-owned utilities may decide whether or not to opt into the competitive retail electric marketplace. See also "Municipally Owned Utility."

Coal is created from the remains of plants and animals that have been concentrated by heat and pressure for millions of years. Coal is found in various forms or "grades," which depend on the ratio of carbon mass to energy content. Represented in descending order of hardness and energy content per pound, these grades are anthracite (highest quality), bituminous, sub-bituminous and lignite.

A Retail Electric Provider that is certified by the Public Utility Commission of Texas and competes for your business by offering competitive prices, renewable energy options, added customer service benefits or other incentives.

A Competitive Retail Natural Gas Supplier is certified by the Public Service Commission of Georgia and competes for your business by offering competitive prices, added customer service benefits or other incentive programs.

A wire, cable, bar, rod or tube which serves as a path for electric flow. The most common conductor is the overhead wire.

Adding charges to a bill without a customer's approval. This practice is illegal and penalties are enforced by the PUC/PSC.

A unit of measurement for volume. It represents an area one foot long, by one foot wide, by one foot deep. Natural gas is measured in cubic feet at sea-level atmospheric pressure, but the measurements are usually expressed in terms of Bcf, Tcf, Mcf or Quads.

Allows for the recovery of the monopoly wires company's corporate capital investments plus a regulated rate of return guaranteed by the appropriate regulation authority (usually around 10%); it also recovers costs related to the maintenance and operation of the transmission and distribution system, and covers power restoration and service operations. The kWh charge is based on the amount of kilowatt hours (kWh) of electricity a customer has used during a billing period. The kilowatt (kW) charge (also known as "demand" charge) is based on the greatest instantaneous amount of electricity consumed by a customer in any half-hour period during the billing cycle.

For an electrical system, this is a ratio of the amount of load (in kVa or amperes) that is operating at the same time to the total amount of connected load on the circuit. An 80% demand factor, for instance, indicates that only 80% of the connected load on a circuit will ever be operating at the same time. Conductor capacity can be based on that amount of load.

DSM is the management of the demand for power. It consists of actions undertaken by utilities to influence consumer use of electricity for the benefit of both the consumer and the utility company. For example, when a utility reaches the point that more capacity is needed, it can either supply more power or reduce demand for electricity through DSM. DSM can include the shifting of demand to off-peak hours, reducing overall consumption, or increasing consumers' overall energy efficiency. Many spread their fixed cost over a specified consumer base, and increase efficiency through economies of scale and load diversity. In return for this franchise, utilities have an "obligation to serve" all consumers in that territory on demand. This means that utilities must ensure that there are sufficient generation, transmission and distribution systems to serve all their present and future consumers.

Removal or relaxation of regulations or controls governing a business or service operation like utilities that have historically operated as a monopoly.

Electricity that flows continuously in one direction. (See Alternating Current)

A system of substations, wires and transformers connected to the transmission system on the high side and delivering voltage at levels acceptable to the consumer on the low side.

Both the Public Utility Commission of Texas and the Public Service Commission of Georgia have established No-Call Lists for customers who do not want to receive telemarketing calls from Retail Electric Providers, Competitive Retail Natural Gas Suppliers or other telephone marketers doing business in Texas or Georgia.

A property of matter caused by the controlled movement of electrons. This "movement" is initiated usually by a generator which is fueled by any number of energy resources such as coal, uranium, water (hydropower), or directly converted from solar radiation in photovoltaic cells. Electricity is not energy per se, but the "carrier" of energy which originates in fossil fuel and renewable energy sources.

The not-for-profit corporation that administers and maintains the reliability of the state's electrical power grid by maintaining the system AC frequency at 60 cycles and the integrity of the transmission grid. When you choose a new Retail Electric Provider, ERCOT will send you a postcard confirming your switch from one Retail Electric Provider to another.

An information sheet required by the PUC that provides customers with standardized information on a Retail Electric Provider's prices, contracts, sources of power generation and emissions. It allows customers to make an "apples-to-apples" comparison of Retail Electric Provider offers.

The production of electricity. In Texas, electricity is produced by a number of fuels converting kinetic energy into electric energy. Fuels used (and other driving forces) include natural gas, coal, nuclear power, wind, water and solar energy.

Equipment made up of magnets and copper wire; the effect of the magnetic fields passing across copper wire creates a flow of electricity.

Geothermal energy is the natural heat of the earth that is conducted or convected to the earth's surface through natural or man-made processes. By harnessing this heat energy and using it to power steam turbines, we can convert geothermal energy into electricity that we can use.

The transmission and distribution network (or "highway") over which electricity moves from suppliers to consumers.

By connecting an electrical circuit to the ground, current has a place to safely escape. The third wire found on most electrical plugs is the ground wire.

Hydropower is the use of the potential energy contained in water behind dams. Release of water through a hydroelectric turbine converts kinetic energy into electricity.

Materials which provide a high resistance to the flow of heat, sound, or electricity from one surface to another.

Any material that will not conduct electricity, such as rubber.

Equivalent to 1000 watts. A measure of instantaneous electrical usage; the equivalent of ten 100-watt light bulbs operating at the same time.

A volumetric measure of electricity usage. The unit on which the price of electrical energy is based; the equivalent of ten 100-watt light bulbs operating for one complete hour.

The amount of electric power demanded or required by the customer base at any specified point in a system; load also refers to the amount of electricity required by a customer or a piece of equipment. When the term refers to the sum of the demands in an electric system, it is usually expressed in megawatts.

The company (formerly a local electric utility) that transmits and delivers electricity to a customer's home or business along the poles and wires. The Local Wires Company is still responsible for maintenance and repair of the poles and wires.

A utility that is owned and operated by the municipality it serves. In Texas, municipally owned utilities may decide whether or not to opt into the competitive retail electric marketplace. See also "City-Owned Utility."

A nonprofit organization formed by the electric utility industry to ensure reliable, adequate power supply in North America. NERC plays an important role in establishing the standards, rules and forms of cooperation that make a major contribution to system reliability. NERC was formed in 1969, and is organized through ten regional councils comprised of individual electric utilities in the United States, Canada and Mexico. The transmission systems of the members of these regional councils are interconnected, creating flexible regional systems that allow the transfer of power among areas to maintain one of the world's most reliable electric systems.

The responsibility of a regulated utility, under traditional regulation, to provide service to all consumers in its service territory on a nondiscriminatory basis. This means that utilities must build, operate and maintain generating plants and transmission and distribution systems to serve all their present and future consumers.

Photovoltaic cells are used to directly convert solar radiation into electricity. Materials called semiconductors, usually made from pure silicon, transfer light energy (photons) into electrical energy in a process known as the photoelectric effect.

A power broker is an entity that arranges a transaction between a buyer and a seller. The broker does not take title to the power and is paid a fee to connect the buyer and the seller.

A network of electric power lines and associated equipment used to transmit and distribute electricity over a geographic area.

The Provider of Last Resort serves as the "back-up" provider when a Retail Electric Provider leaves the market for any reason. If this happens, customers may switch back to the Affiliate Retail Electric Provider or choose another competitive Retail Electric Provider offering electric service in their area.

The state agency that is responsible for the regulation and oversight of electric and local telecommunication services in Texas. Under Electric Choice, the PUC regulates the delivery of electricity and enforces customer protections.

The state agency that is responsible for the regulation and oversight of natural gas suppliers operating in the State of Georgia. The mission of the Public Service Commission is to exercise its authority and influence to ensure that consumers receive safe, reliable and reasonably priced telecommunications, transportation, electric and natural gas services from financially viable and technically competent companies.

To recycle is to put into the cycle again. In other words, to take a product and reuse it when discarded. Recycling saves enormous amounts of energy and raw materials.

The ability to deliver uninterrupted electricity and natural gas to consumers on demand, and to withstand sudden disturbances such as short circuits or loss of major system components. This encompasses both the reliability of the generation system and of the transmission and distribution system. Reliability may be evaluated by the frequency, duration and magnitude of any adverse effects on consumer service.

Electricity that is made from "environmentally friendly" fuel resources, such as wind, water, biomass or solar. Sometimes referred to as "green" energy. Renewable refers to a fuel source that will not ever become unavailable. A generator that burns trash would qualify because we will probably always have burnable waste.

A company that sells electricity to customers. All Retail Electric Providers must be certified to do business by the Public Utility Commission of Texas.

A customer-owned electric utility that distributes electricity to members and that receives lower-cost financing through the federal government. In Texas, co-ops may decide whether or not to opt into the competitive retail market.

Service voltage of 600 volts or less.

The conductors and equipment for delivery of electric energy from the distribution (supply) system to the wiring system of the premises served.

Overhead service conductors between the distribution facilities and your structure.

The rating in amps of the service entrance equipment ("main") of the customer.

The approved point of attachment of the Local Wires Company service drop or the approved point of entry of service to the premises.

The point of connection between the facilities of the serving utility and the wiring of the premises.

A term used to mean the duties a regulated public utility must perform for its consumers. Service obligation includes the duty: 1) to serve all prospective consumers; 2) to provide adequate, reliable service; and 3) to render safe, efficient and nondiscriminatory service.

Public utilities that are owned by shareholders, organized as corporations, and regulated by the Federal Energy Regulation Commission (FERC) and state public utilities commissions. About three-quarters of all Americans receive electric service from shareholder-owned electric utilities. The majority of electric utility shareholders are at or near retirement age and are looking for income to supplement pensions and Social Security benefits.

Switching electric or natural gas service without a customer's approval. This practice is illegal and penalties are enforced by the PUC/PSC.

The collection transfer and storage of the sun's heat for energy use.

A set of transformers (in an enclosed area or on a pole) that change the voltage of electrical energy to levels appropriate for end use.

The System Benefits Charge funds energy efficiency programs for all customers as well as assistance programs for residential customers within certain income guidelines.

A collection of public schedules detailing utility cost-of-service rates, rules, service territory and terms of service that a regulated utility files with its public utilities commission for official approval. Tariffs that have been approved by a public utilities commission are binding legal documents and must be made available to the public.

A contract between a Retail Electric Provider or Competitive Retail Natural Gas Supplier and a customer that outlines fees, length of service and other important information.

The public education program managed by the Public Utility Commission to inform Texans about their options in a competitive retail electric market.

A unit of energy equivalent to 100,000 British Thermal Units (BTUs). Usually used as a measure of the heat energy from burning natural gas (or methane).

A conductor installation capable of carrying heavy loads of electricity. Consists of three high voltage wires and one neutral wire.

An electromagnetic device for increasing or decreasing electrical voltage.

Wires or cables through which high voltage electric power is moved from point to point.

The actual delivery of electricity over poles, wires and underground cables from the generators to your home or business. These services are provided to you by your local wires company, which is responsible for maintaining the poles, cables, transformers and wires, and responding to emergencies and power outages as always. The PUC still regulates transmission and distribution to ensure the safety and reliability of your electric service.

This is the amount of electricity you used during the billing period listed in kilowatt hours (kWh). This will be listed on your electric bill as kWh used.

A unit of power defined as a joule of energy per second. Named in honor of James Watt who in 1765 constructed the first practical steam engine, originally used to power mechanical pumps to remove water from coal mines.

Windmill of advanced aerodynamic design connected to an electricity generator and used in wind power installations. Wind turbines can be either large propeller-type rotors mounted on a tall tower, or flexible metal strips fixed to a vertical axle at top and bottom.

A document that informs you of your rights as mandated by the PUC. Retail Electric Providers must provide you with this disclosure.