Kilowatt Hour
A 1,000-watt unit of energy for one hour

Load Profile
An estimation of the typical electric usage patterns for those customers who do not have an interval recording meter that produces the actual representation of the total kilowatt-hours consumed by customers over a period of time.

Local Distribution Company (LDC)
The utility that owns or controls the distribution lines and other equipment necessary to deliver electricity to the customer.  NOVEC

Market Price
The price of electricity in a particular market.

Market Based Rates
Electricity rates established in an unregulated, competitive market.

Marketers
A person or entity that purchases and takes title to electricity for sale to retail customers in the state.

Megawatt
A unit of energy equal to one million watts (the amount of electricity energy required to light ten thousand 100-watt bulbs).

Minimum Stay Period
If a customer of a competitive service provider requests to return to electricity supply service from NOVEC, there may be a minimum period of time the customer is required to use the service from the local distribution company. If the customer has an annual maximum demand of 500 kW or more, the customer will have to stay with NOVEC for 1 year before they are permitted to switch suppliers again.

Price to Compare
The rate or price per energy unit of electricity used for comparing one energy supplier against another in a retail environment.  It means the portion of NOVEC’s regulated rate applicable to electricity supply service less the competitive transition charge rate. 

Public Utility Holding Company Act of 1935 (PUHCA)
Federal legislation that regulates the corporate structure and financial operations of certain utility holding companies.

Public Utility Regulatory Policies Act of 1978
A federal statute that intended to expand the use of co-generation and renewable energy sources.

Reliability
The degree to which energy is made available to customers in sufficient quantity and quality to be dependable and safe.

Restructuring
Transition from a regulated utility industry environment to a competitive marketplace in which a variety of companies will compete to provide energy products.  Traditional electric -- generation, transmission and distribution -- may be sold separately.

Retail Access
The opportunity for a retail customer in Virginia to purchase a competitive energy service from a licensed competitive service provider seeking to sell such services to that customer.

Retail Customer
A customer who purchases electricity directly from a supplier (NOVEC or a CSP).  This refers to all of our customers (residential, commercial, and industrial) who are not wholesale customers.

State Corporation Commission
Virginia state government entity that oversees the state's utilities.

Stranded Costs
The difference between the market price for utility services and the regulated rate for services.  For example, utility investments, such as power plants, lines and equipment, that cannot be recovered by selling energy services at market prices.

Supplier
A person or entity such as a broker, marketer, or aggregator, that sells electricity to consumers using the transmission or distribution facilities of NOVEC.  (See Competitive Service Provider)

Transmission
Movement of bulk energy sources from the generation facility to a distribution facility.

Transmission Provider
An entity regulated by the Federal Energy Regulatory Commission that owns or operates, or both, the transmission facilities required for the delivery of electricity to NOVEC or the retail customer.

Transmission System
The transportation network over which electricity travels from the point of production to the distribution system.

Unbundling
The separation of energy services into parts -- such as generation, transmission and distribution.

Wholesale Customers
Entities that purchase electricity in bulk for resale to end use customers.    

                                                          Return to Page 1 of Terms ---->