103 terms. Plain English. With cross-links to the guides + the regulators.

Alternative supplier

A licensed third-party energy supplier that competes with your utility's default service to set the supply portion of your bill.

Ancillary services

Grid-stability services such as frequency regulation and spinning reserve that the grid operator buys alongside energy.

Advanced meter

A digital electric meter that records usage in short intervals and communicates with the utility automatically.

AMI

Advanced Metering Infrastructure: the meters, network, and software a utility uses to remotely read and manage advanced meters.

Auto-pay

A bill-payment arrangement where the utility or supplier automatically debits your bank or card on each due date.

Base load

The minimum power demand a grid must meet around the clock; typically served by always-on plants.

Billing cycle

The recurring period (usually monthly) over which a utility or supplier measures and bills your usage.

Budget billing

A program that levels your monthly payment across the year based on your annual usage; balance is reconciled at year-end.

CCF

One hundred cubic feet of natural gas: the volume unit many gas utilities use on the bill.

CRES

Competitive Retail Electric Service: the Ohio designation for licensed alternative electricity suppliers.

CAISO

California ISO: the ISO running the wholesale market and high-voltage grid for California (and parts of Nevada).

Capacity market

A wholesale market where generators are paid to be available during peak demand, separate from the energy market.

Capacity charge

A bill component covering your share of capacity-market costs, often based on your peak usage.

Capacity tag

A customer-specific number set by the grid operator that determines how much capacity the customer is responsible for buying.

CHP

Combined Heat and Power: an on-site system that produces electricity and useful heat from a single fuel source.

Cogeneration

See CHP. Producing electricity and heat together to capture waste heat that conventional plants release.

Capacity factor

The ratio of a generator's actual output over a period to its maximum possible output if run continuously.

CT meter

Current Transformer meter: a meter type used for high-load services, where current is measured indirectly through a CT.

COP

Coefficient of Performance: useful heat output divided by electrical energy input for a heat pump; a COP of 3 means 300% efficiency.

Delivery rate

The cost per kWh or therm to physically deliver energy to your home, set by your utility, not your supplier.

Default service

The supply rate your utility charges if you don't pick an alternative supplier; resets every 1-3 months in most deregulated states.

Deregulated market

A state where energy generation and supply are open to competition while delivery stays regulated.

Demand response

A program where customers reduce usage during peak periods in exchange for bill credits or fixed payments.

Distribution charge

A bill component covering the cost of moving electricity through your local utility's lower-voltage lines to your home.

Dispatch

The grid operator's decision to call on specific generators to run, in order, to meet demand at lowest cost.

Day-ahead market

A wholesale market where generators and buyers commit to next-day quantities and prices.

Distribution feeder

A medium-voltage power line running from a substation through neighborhoods, branching to service drops.

Energy choice

The right of customers in deregulated states to pick their electricity or gas supplier; same utility delivers either way.

ERCOT

Electric Reliability Council of Texas: the ISO running the Texas grid (about 90% of Texas load).

ESCO

Energy Service Company: New York's term for a licensed competitive supplier of electricity or natural gas.

Estimated read

A meter read calculated from prior usage when an actual read isn't available, reconciled at the next actual read.

Energy assistance

Government or charity programs that help income-eligible households pay heating and cooling bills.

ENERGY STAR

A US EPA program that certifies appliances and homes meeting strict energy-efficiency standards.

EER

Energy Efficiency Ratio: cooling output divided by power input at a single rated condition; a higher EER means more efficient.

Electric water heater

A water heater that uses electric resistance or a heat pump to warm water; the second-largest electricity load in many homes.

Early termination fee

A penalty charged if you cancel a fixed-rate contract before its end date; check the terms before signing.

Feed-in tariff

A guaranteed payment rate for renewable energy fed into the grid, set by regulators or contract for a fixed term.

Frequency response

The grid's ability to detect and correct frequency deviations within seconds, critical for reliability.

Gross receipts tax

A state-imposed tax on a utility's total revenues, often passed through to customers as a line item on the bill.

Grid

The interconnected network of generators, transmission lines, and distribution lines that delivers electricity from power plants to customers.

Grid operator

The ISO or RTO that balances supply and demand in real time and runs the wholesale market for a region.

Heat rate

The amount of fuel energy a power plant uses to produce one kWh of electricity; a measure of plant efficiency.

Home energy audit

An on-site or virtual assessment of how a home uses energy and where it can be made more efficient.

Heat pump

An electric system that moves heat in or out of a home; far more efficient than resistance heating in mild climates.

Heat pump water heater

A high-efficiency water heater that uses a heat pump to heat water, often using one-third the electricity of a resistance heater.

ISO

Independent System Operator: a non-profit that runs the wholesale electricity market for a region.

ISO-NE

ISO New England: the ISO running the wholesale market for the six New England states.

ICAP tag

Installed Capacity tag: NYISO's capacity-tag equivalent that drives capacity charges in New York.

Interconnection

The technical and regulatory process of connecting a generator (such as rooftop solar) to the utility's grid.

Interval data

Per-period (often 15-minute) usage records produced by an advanced meter, used for time-of-use billing and peak analysis.

kWh

A kilowatt-hour: the standard unit your electricity bill measures, equal to one kilowatt of power used for one hour.

LDC

Local Distribution Company: the utility that owns the wires or pipes serving your address.

LSE

Load-Serving Entity: any utility, supplier, or co-op responsible for procuring and delivering energy to end customers.

Load factor

The ratio of average load to peak load on a system over a period; higher means more efficient grid use.

LMP

Locational Marginal Price: the wholesale electricity price at a specific grid node, reflecting energy, congestion, and losses.

Level pay

See budget billing. A flat monthly payment plan trued up periodically against actual usage.

LIHEAP

Low Income Home Energy Assistance Program: a federally funded program providing bill help and weatherization for low-income households.

MWh

A megawatt-hour: 1,000 kWh, the unit wholesale electricity markets use to price bulk supply.

MCF

One thousand cubic feet of natural gas: the wholesale-trade volume unit, also seen on some commercial bills.

MISO

Midcontinent ISO: the RTO covering 15 states from Manitoba to the Gulf Coast plus parts of Canada.

Merit order

The ranking of generators by marginal cost, used to dispatch the cheapest first as demand rises.

Marginal cost

The cost of producing one additional kWh of electricity from the next generator in the merit order.

Meter base

The mounting socket on a building where the utility electric meter plugs in.

Meter read

A measurement of cumulative usage taken from your meter, used to calculate the amount billed for the cycle.

NYISO

New York Independent System Operator: the ISO running the wholesale market and grid for New York State.

NSPL

Network Service Peak Load: PJM's transmission-cost tag, similar to PLC but focused on transmission billing.

Net metering

A billing arrangement that credits solar customers for surplus power their panels send back to the grid.

NUG

Non-Utility Generator: a power plant owned by an entity other than a regulated utility, often selling into the wholesale market.

Off-peak

Hours of lower electricity demand (typically nights and weekends); often cheaper on time-of-use plans.

On-peak

Hours of highest electricity demand (typically weekday afternoons); most expensive on time-of-use plans.

Price-to-compare

The all-in default supply rate your utility charges, used as the apples-to-apples benchmark when shopping alternative suppliers.

POLR

Provider of Last Resort: the regulated entity that supplies energy to customers who haven't picked or have been dropped by a supplier.

PUC

Public Utility Commission: the state regulator that oversees utilities, supplier licensing, and consumer protections.

Public Utility Commission

See PUC. State agency overseeing utilities and energy supplier licensing.

PJM

PJM Interconnection: the RTO covering all or part of 13 mid-Atlantic + Midwest states plus DC.

Peak load

The maximum power demand on the grid during a given period; drives capacity costs and TOU pricing.

PLC

Peak Load Contribution: PJM's capacity tag — your usage during the system peak hours of the prior summer.

PPA

Power Purchase Agreement: a long-term contract under which a buyer agrees to purchase power from a generator at a set price.

Pro-rata bill

A bill split proportionally across two pricing periods, often issued when a rate or supplier changes mid-cycle.

Price cap

A regulated maximum supply rate, sometimes used in transitional or default-service contracts.

REP

Retail Electric Provider: the Texas term for a licensed company that sells electricity to homes and businesses.

Regulated market

A state where the utility provides both supply and delivery at a single regulated rate.

Retail market

The end-customer-facing market where licensed suppliers sell electricity or gas to homes and businesses.

RTO

Regional Transmission Organization: a multi-state grid operator running the wholesale market and high-voltage transmission.

REC

Renewable Energy Credit: a tradable certificate proving 1 MWh of electricity came from a renewable source.

Real-time market

A wholesale market that balances actual supply and demand in 5- to 15-minute intervals.

Regulation

A real-time grid service that holds frequency at 60 Hz by tweaking generator output every few seconds.

Resistance heating

Heating produced by passing electricity through a resistive element; one unit of electricity produces one unit of heat.

Supply rate

The cost per kWh or therm of the energy itself, set by your supplier — distinct from delivery charges.

Standing charge

A fixed daily or monthly fee on your bill that covers metering and the distribution-network connection.

Sales tax on energy

State or local sales tax applied to your electricity or gas bill; varies by jurisdiction.

SREC

Solar Renewable Energy Credit: a REC specific to solar generation, traded to meet state solar requirements.

Spinning reserve

Generation capacity already running but not at full output, available to ramp up within minutes if needed.

Substation

A facility where high-voltage transmission lines step down to lower-voltage distribution lines for local delivery.

Service drop

The wires running from your local distribution feeder to the meter base on your home or business.

SEER

Seasonal Energy Efficiency Ratio: cooling output over a typical season divided by power input; the standard AC efficiency rating.

Therm

A unit of heat energy used to bill natural gas, equal to 100,000 BTU or roughly the energy in 100 cubic feet of gas.

Time-of-use

A rate plan where the price per kWh varies by time of day, encouraging usage during off-peak hours.

Transmission charge

A bill component covering the cost of moving electricity over high-voltage lines from generators to your local utility.

TPS

Third-Party Supplier: New Jersey's term for a licensed competitive electricity or gas supplier.

Transformer

A device that changes voltage levels, used at every point where electricity moves between transmission, distribution, and end use.

Wholesale market

The auction market where generators sell electricity in bulk to utilities and suppliers, who then resell it retail.

Weatherization

Upgrades that reduce a home's energy use, such as insulation, air sealing, and high-efficiency appliances.