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Terms Used In Discussions

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Curious View Drop Down

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    Posted: Sep 11 2014 at 4:18pm
Sometimes it seems that folks in the electrical industry speak a different language.  Did you know that the City of Coleman was both an EC and a REP, with a MOU, operating within ERCOT territory, purchasing wholesale power from AEPEP and providing electricity as a NOIE?
This list of terms is probably incomplete and will be added to as needed.
AEP - American Electric Power Company.  A large holding company that owns various electricity related subsidiaries across the country.
AEPEP - American Electric Power Energy Partners, a subsidiary of American Electric Power Co. that only wholesales electricity to cities and electric cooperatives.  The City of Coleman purchases its power from AEPEP under a contract signed in 2007 that expires at the end of 2018.
AEPTN - American Electric Power Texas North.  Another subsidiary of American Electric Power Co.   It does not sell any power.  It delivers and meters electric power to consumers that those consumers purchase from a large selection of retailers.  Their delivery rates are regulated by both the Texas PUC and by ERCOT.  AEPTN delivers electric power to most of the residents of Santa Anna.  That power may be from WTU or Reliant or others.
CCEC - Coleman County Electric Cooperative (an EC, REP, member of ERCOT and a NOIE)
Congestion Charges - Transmission congestion occurs when there is insufficient energy to meet the demands of all customers and additional power must be purchased on the open market at prevailing rates.  Charges are incurred if the prevailing rate is above the contracted rate.
Customer Charge - Fee charged by delivery company for servicing the account.  Sometimes called a 'meter fee'.
Customer Choice - Sometimes referred to as 'Choice', is the freedom of consumers to purchase electricity from the provider of their choice.  It is the opposite of a Non-Opt-In Entity situation.
Demand Meter - Used by some industrial and large commercial accounts, a demand meter records not only the amount of electricity consumed, but also the maximum usage within any given 15 minute (usually) period.  Some users have a great demand for short periods of time and electric providers need to be compensated for the ability to meet that demand. 
EC - Electric Cooperative
Energy Charge - The base fee charged by retailers for electricity per Kwh.
ERCOT - Electric Reliability Council of Texas.  An organization whose members include
consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities (transmission and distribution providers), and municipal-owned electric utilities.
Franchise Fee - In general, a municipal franchise fee is the “rent” that a utility company pays the city to use the right-of-ways (ROW) for its lines, pipes, poles, etc.
Kw - Kilowatt.  One thousand watts of electricity.
Kwh - Kilowatt hours.  The amount of electricity, in kilowatts, consumed in one hour.
MOU - Municipally Owned Utility
NOIE - Non-Opt-In Entity (Basically, a monopoly.  Customers have no choice of electricity providers)
Opt-In - An electricity provider/deliverer that has been operating as a Non-Opt-In Entity (city, co-op or other), under certain circumstances may 'opt-in' to the choice market and allow their customers to purchase power from any retailer approved to sell in their market.  That provider would still deliver, meter and service the accounts - and be paid for those services.
Power Cost Recovery Fee - Sometimes called a 'power cost adjustment' or 'surcharge' is a variable fee charged by electricity retailers to cover unforeseen costs.
Provider of Last Resort - If, for whatever reason an area loses its electrical provider, the Public Utility Commission has assigned providers to assume coverage in that area.
PUC - Public Utilities Commission (Texas PUC is often referred to as PUCT).  The Texas PUC regulates most, but not all, aspects of utility production, distribution and marketing in Texas.  For instance, they set some rules of how a city-owned utility (MOU) operates, but do not regulate rates.
REP - Retail Electric Provider (sells to end users)

Edited by Curious - Sep 11 2014 at 5:04pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: Sep 11 2014 at 4:43pm
Very helpful. Thank you!
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