Common Terms
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Aggregation or Aggregators
A person or group that will match up groups of consumers with an electricity supplier to negotiate a better price than each consumer could get on his or her own.

Competitive Energy Service
The provision of electricity supply service in a retail access program

Competitive Service Provider (CSP)
A seller of competitive energy services and or/other related competitive energy services to a retail customer.

Competitive Transition Charge
A charge, approved by the State Corporation Commission, that is applicable to a retail customer who chooses to procure electricity supply service from a competitive service provider.  The charge allows the local distribution company to recover money legitimately spent, that they could reasonably expect to be paid back for as a regulated utility, that they will not be paid back for under competition (sometimes called "stranded costs"). Customers who select alternative suppliers will see this as a line item on their bills.  Also known as the "wires" charge.

Consolidated Billing
The means of providing a single bill to a retail customer that includes the billing charges of a Competitive Service provider and the billing charges of NOVEC.

Consumption Tax
State and local taxes on the energy consumed by customers.  The consumption tax appears as a separate line item on customers' bills.

Default Service
The energy supplier that under retail choice will provide electric supply service to customers who do not choose a Competitive Service Provider.  This will be NOVEC.  Also referred to as Default Supplier and Default Provider.

Demand-Side Management
The use of processes and equipment to reduce the use of electricity or to shift use away from periods of high electrical demand.

Deregulation
The replacement of rate regulation with market determination of energy prices and services in a competitive environment.

Distribution
The delivery of electricity from a substation to a home or business.  Local Distribution Companies are responsible for maintaining these lines and equipment, as well as delivering the energy to consumers.

Distribution Service
The delivery of electricity through the distribution facilities of the Local Distribution Company to a retail customer.  The cost of Distribution Service will appear as a separate line item on customers' bills.

Electric Supply Service
The generation of electricity, or when provided together, the generation of electricity and its transmission to the distribution facilities of the local distribution company on behalf of a retail customer.

Electronic Data Interchange
Computer-to-computer exchange of business information using common standards for high volume electronic transactions.

Energy Marketer
A company or individual who purchases energy products in bulk and resells them to a retail customer.

Energy Service Provider
A company or individual who arranges to provide customers with electricity at unregulated prices (includes Energy Marketers and Aggregators).

Energy Policy Act (EPACT) of 1992
Comprehensive federal legislation that has led to the restructuring of the energy industry by promoting competition in wholesale electricity markets.

Federal Energy Regulatory Commission (FERC)
A Federal agency that regulates the wholesale electricity market.

Franchised Service Territory
The geographic service area in which a public utility has an exclusive right and corresponding obligation to provide electricity to consumers.

Generation
Of the three components involved in making energy available for the end user, the state in which energy is produced.  Electric generation occurs at a power plant fueled by various sources.  .

Green Power
Production of electricity from "renewable" or environmentally friendly sources, such as hydro, wind, and solar.

Grid
The transmission network, or transportation lines over which electricity travels from the electricity supplier to the Local Distribution Company to the consumer.

Independent Service Operator (ISO)
An independent entity that controls a grid, coordinating the generation and transmission of electricity to assure a reliable power supply to consumers.

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