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Kilowatt-hour (kwh)—A basic
unit of electric energy equal to one kilowatt (1,000 watts) of power
supplied to or taken from an electric circuit steadily for one hour.
Unbundled rates—Separate charges for components of regulated
electric service, such as generation, transmission, and distribution
services.
National Energy Policy Act—1992 legislation that provides for
competition in electric generation. The law also gives FERC authority
to require utilities to provide access to their transmission systems
to other electric suppliers seeking to compete in the wholesale
market.
Retail competition—Opportunity for customers to purchase
electricity from among a number of different providers.
Wholesale competition—Opportunity for other electric companies
to purchase bulk supplies of electricity that they can resell to their
customers. These exchanges usually are accompanied by an agreement
that allows the use of the interconnected transmission system.
Stranded investments or stranded costs - Also known as negative
stranded costs, are utility investments, such as in facilities and
equipment that are not supported by market prices.
Transmission charge - Part of the monthly basic service charge
on an electric customer’s bill for transporting electricity from the
source of supply to the local distribution company. This charge will
vary with the source of supply. The Federal Energy Regulatory
Commission regulates retail transmission prices and services.
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