Electricity Glossary
Understanding is a key factor in transparency—that's why we've put together this glossary of terms to help you wade through the sometimes-complex language of electricity.
Advanced Metering Charge
A charge assessed to recover a TDU’s charges for Advanced Metering Systems, to the extent that they are not recovered in a TDU’s standard metering charge.
Base Charge
A charge assessed during each billing cycle without regard to the customer’s demand or energy consumption.
Demand Charge
A charge based on the rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designated period, during the billing cycle.
Energy Charge
A charge based on the electric energy (kWh) consumed.
Energy Efficiency Cost Recovery Factor
A charge assessed to recover a TDU’s costs for energy efficiency programs, to the extent that the TDU charge is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.
Gross Receipts Tax Reimbursement
A fee assessed to recover the miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than 1,000.
kW
Kilowatt, the standard unit for measuring electricity demand, equal to 1,000 watts.
kWh
Kilowatt-hour, the standard unit for measuring electricity energy consumption, equal to 1,000 watt-hours.
Late Payment Penalty (Fee)
A charge assessed for late payment in accordance with Public Utility Commission rules.
Nuclear Decommissioning Fee
A charge assessed to recover a TDU’s charges for decommissioning of nuclear generating sites.
PUC Assessment
A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act.
Sales Tax
Sales tax collected by authorized taxing authorities, such as the state, cities and special purpose districts.
TDU Delivery Charges
The total amounts assessed by a TDU for the delivery of electricity to a customer over poles and wires and other TDU facilities not including discretionary charges.
Transition Charge
A charge assessed to recover a TDU’s charges for securitized costs associated with the transition to competition.
Electricity Facts Label
Information in a standardized format, as described in §25.475(f) of this title (relating to Information Disclosures to Residential and Small Commercial Customers), that summarizes the price, contract terms, fuel sources, and environmental impact associated with an electricity product.
Demand
The rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designated period, usually expressed in kilowatts (kW) or megawatts (MW).
Terms of Service
A contract between a Retail Electric Provider and a customer that outlines terms, price, fees, length of service and other important information.
Transmission and Distribution Utility (TDU)
Transmission and Distribution Utility. Facility that transmits and/or distributes electricity, and whose rates for Transmission Service, distribution service, or both is set by a Governmental Authority. Previously referred to as TDSP – Transmission and Distribution Service Provider.
