Glossary of Energy Terms

A program that spreads the customer’s annual energy expense over a designated period, allowing a customer to know ahead of time what each monthly payment will be.

Typically, the company providing the budget will review the customer’s usage history. Based on that information and expected energy prices, the company will determine the customer’s budget amount. The customer will pay that amount throughout the budget-billing period. At the end of the budget period, the company will review the customer’s actual usage and will perform a "true-up" or settlement.

The true-up reconciles what the customer paid on the budget plan with the usage the customer actually consumed and would have been charged during the budget period. The customer may either receive a credit if he paid too much during the budget period, or a bill to pay the difference if he did not pay enough during the budget period. The company will then adjust the customer’s budget payment for the next period based on the previous period’s actual usage or issue a check to the customer, if requested.

Some markets require that the budget billing for both supply and delivery be set up by the utility, while other markets require that the supplier be contacted directly for budget-billing arrangements.

The quantity of heat required to raise one pound of water 1 degree Fahrenheit.

A unit of measure used for natural gas in some U.S. utilities. For example, 1 ccf of natural gas equals:

• 2.83 cubic metres (m3)
• .1067 gigajoules (GJ)
• 1.03 therms

An average residential customer uses 85 ccf per month.

Companies that sell electricity and/or natural gas in an open energy market. Also called electricity providers, power generators, energy service companies, third-party suppliers, energy vendors, energy marketers, electric generation suppliers or natural gas suppliers.

Written disclosure statement of the terms of service between a customer and electric generation supplier.

The time of year (May – Sept.) when it is necessary to cool a premise; considered to be the peak season for electricity usage.

The most common unit of measure of gas volume. One cubic foot roughly equals 1,000 BTUs.

The unit of measure used for natural gas in Canada. One cubic metre of natural gas equals:

• .353 ccf
• .03769 gigajoules (GJ)
• .357 therms

*Preferred spelling in Canada.

An average residential customer uses 235 cubic metres per month.

An individual or company who enrolls with a competitive energy supplier.

A document required by the New York State Public Service Commission detailing the most important provisions of the customer’s contract, such as the term, rates and termination fees.

All customers must receive this document at the time of sale. The document is designed after the “Schumer Box,” which has been used by credit card companies for many years. The Customer Disclosure Statement plainly describes the details of the energy plan selected by the customer.

Unit of measure used for natural gas. One decatherm equals:

• .9708 mcf
• 1 MMBtu
• 9.708 ccf
• 10 therms

An average residential customer uses 85 Dth per month.

The transport of natural gas and/or electricity via the LDC’s pipes and/or wires.

The amount a customer is billed for the costs of transportation, storage and distribution from the utility to the customer, plus a regulated rate of return, or profit, on the investment the utility has made in the energy distribution system. Changes in the cost of natural gas and electricity may impact the customer's delivery charge because the operation of pipeline and wire systems uses energy as well.

The removal or simplification of government rules and regulations that constrain the operation of market forces. Deregulation does not mean elimination of laws against fraud, but eliminating or reducing government control of how business is done, thereby moving toward a more free market.

Local pipeline delivery of natural gas.

The ability of a facility or piece of equipment to use more than one kind of fuel, usually gas or oil.

A Pennsylvania term that refers to the electric utility company. Gateway Energy must use this terminology to refer to the utility in all customer communications.

An alternative energy supplier. A term used primarily in New York (See Competitive Power/Energy Suppliers.)

The highest quality commodity sales service offered to customers because there is no planned interruption of commodity flow.

The process of changing other forms of energy, such as fossil fuel, nuclear or renewable, into electricity.

Unit of measure used for natural gas. One GJ of natural gas equals:

• 9.37 ccf
• 26.532 m3
• 9.47 therms

An average residential customer uses 9 GJ per month.

Similar to the energy released when burning a million wooden matches, a gigajoule of gas will cook more than 2,500 hamburgers. A gigajoule of electricity will keep a 60-watt incandescent bulb continuously lit for six months.

A federally funded energy-assistance program designed to help eligible low-income consumers meet the costs of home heating. Eligibility for the program is based on income and housing situation.

The time of year (Nov. – March) when it is necessary to heat a premise; considered to be the peak season for natural gas usage.

Gas service that is subject to interruption at the option of the pipeline or LDC. Tariffs for interruptible service are cheaper than those for firm service.

1,000 watts, the standard unit of electricity. A human climbing a flight of stairs is doing work at a rate of about 200 watts. A typical household incandescent light bulb uses electrical energy at a rate of 25 to 100 watts, while compact fluorescent lights typically consume 5 to 30 watts.

The standard unit to measure electricity. Ten 100-watt light bulbs used for 1 hour consume one kilowatt-hour (1,000 watt-hours) of electricity. A consumer’s electricity use determines the total number of kilowatt-hours on his bill. An average residential customer uses approximately 500 kWh per month.

A utility company. A term primarily used in New York.

A percentage of gas received by a pipeline or LDC that is retained to compensate for lost and unaccounted for gas. The electric energy or natural gas lost in transmission and distribution lines.

Unit of measure used for natural gas. 1 mcf equals 1,000 cubic feet.

• 10 ccf
• 10.3 therms
• 1.067 GJ

Sole supplier of a particular good or service. A monopoly exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. Before deregulation, utilities had monopolies on energy supply.

The world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals.

The Texas Provider of Last Resort is a backup for customers whose chosen retail electric provider is unable, for any reason, to continue service. The POLR serves as default electricity provider should customers fail to choose a Retail Electric Provider. The POLR services customers at non-discounted rates.

Type of billing classification or category. Energy customers are divided into classes based on usage, ranging from residential to commercial and industrial.

The term used in Texas for an alternative energy supplier.

Governing bodies that regulate electric, gas, steam, telecommunications and water utilities on the state level. They are charged by law with setting rates and ensuring that adequate service is provided by all utilities.

The natural gas and/or electricity supplied from the generation point to the delivery point.

The compilation of the effective rate schedules for a company, along with general terms and conditions.

A unit of measure for natural gas used in some U.S. utilities. One therm of natural gas equals:

• .9708 ccf
• 2.8 m3
• .1056 GJ

An average residential customer uses 80 therms per month.

A telephonic recorded verification used to confirm a customer’s request to contract with a company for a particular good or service. A TPV must be conducted by an outside (third-party) company.