GLOSSARY

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

Act: refers to the Ohio Electric Restructuring Act of 1999, also known as Senate Bill 3.

Aggregation or Aggregators: represents a person, local organization or government that groups together and allows them to buy electricity or natural gas together. Aggregators can reduce the prices of service and provide other benefits to its members.

Apples to Apples Charts: represents a chart that compares the electricity and natural gas offers. It is the only comparison for which service providers are legally required to provide accurate and updated information about their offers.

B

Broker: A certified service supplier that brokers the deal between buyers and sellers. A broker does not take title of any service sold.

C

ccf: a hundred cubic feet, i.e. a measurement unit used to measure natural gas.

Competitive Retail Electric Service (CRES) Provider: A PUCO certified, retail electric service provider that competes for your business by offering special prices, renewable energy sources or other incentives.

Competitive Retail Natural Gas Service (CRNGS) Provider: A PUCO certified, retail natural gas service provider that competes for your business by offering special prices, renewable energy sources or other incentives.

Customer: The end user of electricity or natural gas service who is connected to the delivery system within a local utility service distribution territory.

Customer Charge: Charge billed each month to recover the ongoing fixed costs of providing service to a consumer’s location.

Customer Choice: Customers have the opportunity to choose their electric or natural gas supplier.

D

Demand-Side Management: A process that involves the use of various processes, incentives, equipment and technology to reduce the use of electricity or natural gas, especially in periods of high demand.

Deregulation: The decrease of legal regulation that governs business and service.

Distribution: PUCO regulated delivery of electricity or natural gas to end consumers. It includes the use of wires, transformers, substations and other technological solutions and equipment.

Distribution Company: See: Local Utility.

E

Electric Distribution Utility (EDU): The local utility that deals with the delivery of electricity to homes and businesses.

Electric-Related Service: Any service that is related to the use of electricity.

F

Federal Energy Regulatory Commission (FERC): Federal agency that regulates the interstate transmission of utility services, such as natural gas, oil and electricity. This agency is completely independent.

Fixed Delivery Charge: Charged billed each month to recover the ongoing fixed costs of providing service to a consumer’s location. See: Customer Charge.

Fixed Price: The price per kWh that remains the same over the entire duration of contract or at least three billing cycles (whichever is longer).

G

Gas Cost Recovery (GCR) Charge: This charge represents the cost of natural gas that your local distribution company pays to purchase the gas for you. This cost is transferred to you, with no additional fees or profit for the LDC. The LDC recovers only the actual cost of natural gas through this charge.

Generation: The process in which electricity is produced in power plants.

Generation Charge: The charge of producing electricity. The generation charge depends on your contract terms with the supplier, in case you purchase directly from them.

Green Power: Energy that is produced or generated without a considerable impact on the environment. The production of green power comes from renewable sources, such as wind and solar energy.

Grid: The network of transportation lines that are used to supply electricity from the local electric utility to the end consumer.

I

Independent Service Operator (ISO): ISO is an independent entity that monitors a grid and controls the processes of power generation and transmission, ensuring that the end consumer has a reliable power supply.

Introductory Price: New customers are eligible to receive an all-inclusive price per kWh that will be in effect for a limited time period. After the limited offer, the customers will switch to a new price that will remain active for the remainder of the contract, as agreed with the supplier.

Investor-Owned Utilities (IOU): Public utilities serve around ¾ of all electricity customers and they’re owned by shareholders.

K

Kilowatt (kw): A kilowatt equals 1,000 watts of energy.

Kilowatt Hour (kwh): A 1,000 watts of energy per hour. This is the standard measurement unit for electricity usage.

L

Load Profile: A load profile is the customer-specific energy usage pattern.

Local Distribution Company (LDC): The local distribution company delivers natural gas to end consumers.

Local Utility: A local utility is the company that delivers the utility service, e.g. natural gas or electricity, to your home.

M

Marketer: A certified supplier that deals with sales to retail end consumers.

Market Price: The price of the utility service within a specific market.

Market-Based Rates: Market-based rates represent the utility rates that are set in a competitive market. As their name suggests, these rates depend heavily on the nature of a particular market.

MCF: A thousand cubic feet, the standard measurement unit for natural gas.

Megawatt: A million watts.

Monthly Fee: A monthly fee is set by the supplier who can include it in the contract in addition to the usage rate.

Municipal Electric Utility (Muni): A utility that is owned, operated and regulated by a local governing body, such as a city or town government, for example. The state of Ohio allows municipal utilities to decide whether they want to participate in competitive retail services on their own.

N

Non-Utility Generator (NUG) or Independent Power Producer: A company or a business organization that generates or produces power. This type of organizations is exempt from traditional utility regulation.

NYMEX: The New York Mercantile Exchange. Natural gas and other commodities are traded and sold on this public market.

O

Open Access: Grid access based on similar or identical terms and conditions.

P

Price to Compare: The price that the supplier needs to beat for you to save money. This price is shown on the residential customer bill and you can use it to compare your current service with offers from competitor companies.

Provider of Last Resort: The backup provider that helps competitive suppliers maintain normal service in unforeseen circumstances.

Public Utility Holding Company Act of 1935 (PUHCA): The federal law that governs the structure and organization of utility holding companies.

Public Utility Regulatory Policies Act of 1978 (PURPA): The federal statute that was passed to encourage the use of renewable energy sources and the use of cogeneration.

R

Regional Transmission Organization (RTO): The organization that transports electricity over large interstate areas. These organizations monitor, control and manage an electricity transmission grid that is considerably larger and uses higher voltages compared to typical power company grids.

Reliability: The ability of the utility company to deliver continuous, uninterrupted service to consumers.

Renew. Content (Renewable Content): The percentage of the energy supply that comes from renewable energy sources.

Renewable Energy: Energy, either electricity or natural gas, generated from environmentally friendly resources – wind, water, solar energy, waste heat, biomass or biogas. This type of energy is often called “green”.

Retail Choice: The ability of retail customers to freely choose their energy supplier based on their own needs and desires.

Rural Electric Cooperative: A non-profit electric company financed under the Rural Electrification Act of 1936. There are 24 rural electric cooperatives in Ohio. The state allows municipal utilities to decide whether they want to participate in competitive retail services on their own.

S

Slamming: The practice of switching electric or natural gas service between providers without the approval of the customer. PUCO forbids slamming and enforces penalties for it.

Standard Choice Offer (SCO): Columbia Gas of Ohio, Dominion Energy Ohio and Vectren Energy Delivery of Ohio participate in auctions to secure natural gas supply for customers who are not part of the retail choice program. These auctions establish the standard choice offer rates for eligible customers, which are based on the NYMEX month-end settlement price for natural gas and the price adjustment settled in the auctions. The price adjustment reflects the winning bid to deliver natural gas to the utility service area.

Standard Service Offer: This is the service that the customers receive from the local utility company if they do not choose their own supplier.

Supplier: The company that supplies you with electric or natural gas service.

Supply Charge: Suppliers offer the supply charge, i.e. the price of electric or natural gas service to customers.

T

Terms and Conditions: A contract between a utility service provider and a customer. It outlines all the service fees, duration and other important information.

Transmission: The process of transporting high-voltage electricity from the power plant where it is generated to the local electric utility.

Transmission Charge: The fee that customers are charged for transporting electricity from the power plant to the local electric utility.

Transportation Cost: The cost that refers to the transportation of natural gas from the transmission pipeline to the LDC.

U

Unbundled Service: The separation of different utility service processes, such as generation, transmission, distribution etc.

V

Variable Price: A per kWh price that can change regularly in accordance with the terms and conditions in the disclosure statement of the supplier.

W

Wholesale Customers: Customers that purchase large amounts or bulks of electricity or natural gas to resell it to end consumers. Municipal entities and rural electric cooperatives represent wholesale customers.