Electric Glossary

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*Sources:
Edison Electric Institute
US Energy Information Administration
Vectren Energy Delivery of Indiana, Inc. (Vectren South) Tariff for Electric Service

Commercial Terms

Energy Charge – That portion of the charge for electric service which is based upon the electric energy (kWh) consumed or billed.

Bill – An itemized list or statement of fees and charges for electric service or other services provided by a utility.

Billing Demand – The metered average load in kilowatts or kilo-volt amperes during the 15 minute period of maximum usage in the month as determined by suitable instruments installed by a utility.

Capacity Charge – An element in a two-part pricing method used for calculating a customer’s bill (energy charge is the other element).  The capacity charge, sometimes called Demand Charge, is assessed on the amount of capacity being purchased. 

General Terms and Conditions – General Terms and Conditions applicable to electric service, as amended from time to time, and as approved by a regulatory body with jurisdiction as part of a utility’s Tariff for Electric Service.

Cost-of-Service Regulation – Traditional electric utility regulation under which a utility is allowed to set rates based on the cost of providing service to customers and the right to earn a limited profit.

Curtailment – The interruption or limitation of the electric service available to the Customer pursuant to a utility’s Curtailment Procedures.

Curtailment Period – The period of time during which electric service is subject to Curtailment.

Customer – Any individual, partnership, association, firm, public or private corporation or any other entity receiving electric service provided by a utility with its consent. A Customer shall include any person receiving electric service from a utility irrespective of whether that person is the individual in whose name the electric service is being received.

Customer Classes:

• Residential – The residential sector is defined as private household establishments which consume energy primarily for space heating, water heating, air conditioning, lighting, refrigeration, cooking and clothes drying. The classification of an individual consumer's account, where the use is both residential and commercial, is based on principal use. For the residential class, do not duplicate consumer accounts due to multiple metering for special services (water, heating, etc.). Apartment houses are also included.
• Commercial – The commercial sector is generally defined as non-manufacturing business establishments, including hotels, motels, restaurants, wholesale businesses, retail stores and health, social and educations institutions.  Utilities may classify commercial service as all consumers whose demand or annual use exceeds some specified limit.  The limit may be set by the utility based on the rate schedule of the utility.
• Industrial – The industrial sector is generally defined as manufacturing, construction, mining agriculture, fishing and forestry establishments Standard Industrial Classification (SIC) codes 01-39. The utility may classify industrial service using the SIC codes, or based on demand or annual usage exceeding some specified limit. The limit may be set by the utility based on the rate schedule of the utility.

Demand  – The level of electric energy is delivered to a customer, at a given instant or averaged over any designated period of time. May be measured in kilowatts (kW) or kilovolt-amperes (kVA)  (see also Peak Demand)

Demand-Side Management – The planning, implementation, and monitoring of utility activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. It refers only to energy and load-shape modifying activities that are undertaken in response to utility-administered programs. It does not refer to energy and load-shape changes arising from the normal operation of the marketplace or from government-mandated energy-efficiency standards. Demand-Side Management (DSM) covers the complete range of load-shape objectives, including strategic conservation and load management, as well as strategic load growth.

Electric Rate Schedule – A statement of the electric rate and the terms and conditions governing its application, including attendant contract terms and conditions that have been accepted by a regulatory body with appropriate oversight authority.

Energy Efficiency – Refers to programs that are aimed at reducing the energy used by specific end-use devices and systems, typically without affecting the services provided. These programs reduce overall electricity consumption (reported in megawatt-hours), often without explicit consideration for the timing of program-induced savings. Such savings are generally achieved by substituting technically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Examples include high-efficiency appliances, efficient lighting programs, high-efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives, and heat recovery systems.

Interruptible Load – Refers to program activities that, in accordance with contractual arrangements, can interrupt consumer load at times of seasonal peak load by direct control of the utility system operator or by action of the consumer at the direct request of the system operator. It usually involves commercial and industrial consumers. In some instances the load reduction may be affected by direct action of the system operator (remote tripping) after notice to the consumer in accordance with contractual provisions. For example, loads that can be interrupted to fulfill planning or operation reserve requirements should be reported as Interruptible Load. Interruptible Load as defined here excludes Direct Load Control and Other Load Management. (Interruptible Load, as reported here, is synonymous with Interruptible Demand reported to the North American Electric Reliability Council on the voluntary Form EIA-411, "Coordinated Regional Bulk Power Supply Program Report," with the exception that annual peakload effects are reported on the Form EIA-861 and seasonal (i.e., summer and winter) peakload effects are reported on the EIA-411).

Peak Demand – The maximum load during a specified period of time.

Service Area – Areas in which a utility has electric service available or may offer electric service, as certified by a regulatory body with jurisdiction.

Tariff for Electric Service-- A published volume of electric rate schedules and general terms and conditions under which electric service will be supplied.

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