Electricity Terms Glossary 50+ Energy Terms Explained for Ohio, Pennsylvania, and Massachusetts Consumers

Kilowatt-hour (kWh) is the standard unit measuring electricity consumption. One kWh equals using 1,000 watts for one hour. Key electricity terms:

• kWh (kilowatt-hour) — Energy consumed over time (what you pay for)
• kW (kilowatt) — Power/capacity at any moment
• Voltage — Electrical pressure (120V standard, 240V for large appliances)
• Ampere (amp) — Flow rate of electrical current

Typical residential usage: 800-1,200 kWh monthly depending on home size, climate, and appliance efficiency. How to calculate costs: Rate (cents per kWh) × monthly usage = supply costs.

Electricity deregulation separates power generation from distribution, allowing customers to choose their supplier. Key deregulation terms:

• Energy choice — Ability to select competitive suppliers (also: retail choice, customer choice)
• CRES (Competitive Retail Electric Service) — Providers selling electricity directly to Ohio consumers
• Default service / SSO / Basic service — Utility-provided electricity for non-shopping customers

Aggregation terms:

• Aggregation — Communities purchasing electricity collectively for better rates
• Opt-out aggregation — Automatic enrollment unless you decline
• Opt-in aggregation — Requires active enrollment

Market types: Retail markets (suppliers compete for customers) vs. wholesale markets (generators sell to suppliers).

Price to Compare (PTC) is the benchmark rate your utility charges, used to evaluate competitive supplier offers. Plan types:

• Fixed-rate — Locked price for contract term (protection from increases)
• Variable-rate — Adjusts monthly based on market (flexibility, but volatility risk)
• Indexed rates — Tied to market index plus margin
• Introductory rates — Discounted prices for initial period

Rate structures:

• Time-of-use (TOU) — Different prices based on when you use electricity
• Tiered rates — Change based on consumption levels
• Generation rate — Electricity production costs (separate from delivery)

Your electricity bill contains multiple charge types. Main bill components:

• Supply charges — Cost of generating/purchasing electricity (what you shop for)
• Distribution charges — Local utility infrastructure (wires, transformers, maintenance)
• Transmission charges — Moving electricity from plants to local systems
• Customer charge — Fixed monthly fee for service connection

Additional charges:

• Riders and surcharges — Fund energy efficiency, renewables, infrastructure
• Demand charges — Commercial customers' peak power draw

Rate terminology:

• Base rate — Standard supply rate before fees
• Total rate — All charges combined for complete per-kWh cost

Public Utilities Commission of Ohio (PUCO) regulates Ohio electric utilities, licenses competitive suppliers, and enforces consumer protections. The Ohio Consumers Counsel (OCC) independently represents residential utility customers in PUCO proceedings. Pennsylvania Public Utility Commission (PA PUC) oversees Pennsylvania utilities and competitive suppliers, enforcing rules like the $50 ETF cap for residential customers. Massachusetts Department of Public Utilities (MA DPU) regulates electricity suppliers and distribution companies in Massachusetts. PJM Interconnection is the regional transmission organization managing the electrical grid for Ohio, Pennsylvania, and surrounding states, conducting capacity auctions affecting wholesale prices. ISO New England operates the grid for Massachusetts and New England states. These regulatory bodies ensure fair markets, resolve customer complaints, and publish consumer education resources.

Competitive suppliers sell electricity in deregulated markets. Supplier terminology:

• CRES (Ohio) — Competitive Retail Electric Service provider
• EGS (Pennsylvania) — Electric Generation Supplier
• Enrollment — Signing up with a new supplier
• Switching — Changing from one supplier to another

Contract terms:

• ETF (Early Termination Fee) — Penalty for canceling before term ends
• Rescission period — Cancel within 3 days without penalty
• Auto-renewal — Contracts extend unless you opt out
• Contract term — Duration (commonly 6, 12, 24, or 36 months)

Documents: Disclosure statement (terms summary) | Welcome letter (enrollment confirmation) | Confirmation number (tracking)

Smart meters digitally record electricity usage in near real-time. Metering technology:

• Smart meters — Enable time-of-use rates and detailed tracking
• AMI (Advanced Metering Infrastructure) — Network of smart meters and communication systems
• Estimated billing — Historical averages when readings unavailable

Usage terminology:

• Net metering — Credits solar owners for excess electricity sent to grid
• Demand response — Pay customers to reduce usage during peak periods
• Load profile — Your typical usage pattern over time
• Peak demand — Highest instantaneous power draw
• Baseline usage — Typical patterns before efficiency changes

Renewable Energy Certificates (RECs) represent the environmental attributes of renewable electricity generation. Green energy terms:

• RECs — Purchased separately from physical power to track renewables
• Green energy plans — Source from renewables or purchase RECs
• Carbon offset credits — Fund environmental projects to compensate emissions
• Carbon neutral — Plans that offset all carbon emissions

Solar terms:

• Community solar — Subscribe to shared installations, receive bill credits
• Solar buyback rate — Payment for excess solar sent to grid

Standards:

• AEPS (Alternative Energy Portfolio Standard) — Requires utilities to source from renewables
• Green-e certification — Independent verification of renewable claims

Programs help qualifying households manage electricity costs. State-specific programs:

• LIHEAP — Federal funds for heating/cooling bills
• PIPP (Ohio) — Caps bills at percentage of household income
• CAP (Pennsylvania) — Reduced rates for income-eligible customers

Payment options:

• Budget billing — Equal monthly payments based on annual estimate
• Payment arrangement — Structured installment plans for past-due balances
• Arrearage forgiveness — Reduce/eliminate past-due balances for maintaining payments

Efficiency programs:

• Weatherization assistance — Free insulation, sealing, and equipment upgrades
• Universal service fund — Surcharges funding low-income assistance programs

Electric Distribution Company (EDC) owns and operates the infrastructure delivering electricity to customers. Utility terminology:

• EDC / Local distribution utility — Poles, wires, and delivery infrastructure
• Service territory — Geographic area where utility provides service
• Rate class — Customer category (residential, commercial, industrial)

Account identifiers:

• Account number — Unique ID for billing and supplier enrollment
• Premise address — Physical location receiving service
• Meter number — Specific device measuring consumption

Infrastructure terms:

• Service drop — Connection from utility lines to your building
• Transformer — Steps down voltage to building-appropriate levels
• Outage — Any service interruption (planned or unplanned)