Glossary of Terms
The following section aims to provide consumers with definitions of some of the commonly used terms regarding your electricity service and green power options.
Biomass - Energy produced from naturally replenishable resources such as plant matter, agricultural and forestry waste and landfill gas.
"Bundled" Renewable Electricity Option – An option where the energy commodity and green attributes, or characteristics, are matched together and sold as one unit.
"Certificate-based" Renewable Electricity Option – An option where the green attributes, or characteristics, are sold independently from the energy commodity.
Customer Charge - The fee you pay to receive service from your distribution company.
Default Service - If you have moved or switched suppliers since 1998 and have gone back to your original service company, you are on default service. Default service customers pay a "market price" for their electricity supply, which is generally higher than the standard offer.
Deregulation - In the electric industry, "deregulation" (also called "restructuring") describes the transition from utilities playing a monopolistic role (controlling all aspects of electricity supply and delivery), to a state in which other companies can participate in the market for generating and supplying electricity. After a region’s electric industry is restructured, electric services are separated into generation, transmission and distribution. You have the ability to choose the generation provider of your electric service. Whether you choose a competitive supplier or not, your current electric utility will continue to be responsible for the delivery of your electricity.
Distribution - The transport of electricity by your distribution company across local lines and into your home.
Distribution Company - The company that provides your transmission and distribution services. Your distribution company will automatically function as your electricity supplier unless you choose an alternative company. It is your distribution company that is responsible for maintaining local power lines and restoring your power during outages.
Electric Grid – The network of power shared throughout New England. Generators from all over the region feed power into this grid and energy is drawn out on an as needed basis. Since our electricity is based on a regional mix, the electricity that is actually delivered to your home is determined by which power generators are located closest to you.
Generation or "supply" - The power that is generated to meet your electricity needs. Power can be generated from resources such as coal or oil burning or from renewable resources such as wind and solar.
Green Attributes – The environmental characteristics of a renewable energy resource. For every unit of energy that is generated in New England there is a corresponding certificate which describes the characteristics of the power source such as emissions data, when the facility began operating etc. For renewable energy resources, these attributes hold extra value.
Green/Renewable Electricity – Energy that is produced from naturally replenishable or infinite sources such as the sun, wind and water are considered renewable resources. Renewable electricity generation has a lower impact on the environment than fossil fuel and nuclear power facilities because they emit little or no emissions, they do not need to be mined or extracted, and do not produce harmful radioactive waste.
Kilowatt (kW) - A measure of power - one kilowatt is equal to 1,000 Watts or 10 X 100 Watt light bulbs.
Kilowatt hour (kWh) - A measure of your electricity consumption. One kilowatt hour is equivalent to 1,000 watt hours or running a 100 Watt light bulb for 10 hours.
Renewable Energy and Energy Efficiency Charges - Fees that pay for programs to help you lower your electricity bills and reduce the environmental impacts of your energy use. (In Massachusetts, these charges currently amount to about $0.50/month for the average household.)
Restructuring – Sometimes called "deregulation," this describes the transition from utilities playing a monopolistic role (controlling all aspects of electricity supply and delivery), to a state in which other companies can participate in the market for generating and supplying electricity. After a region’s electric industry is restructured, electric services are separated into generation, transmission and distribution. You have the ability to choose the generation provider of your electric service. Whether you choose a competitive supplier or not, your current electric utility will continue to be responsible for the delivery of your electricity.
Small Hydroelectric – Electricity produced from the movement of water, such as the flow of rivers. "Small" hydroelectric facilities are those which are under 30 MW in size. Small hydroelectric facilities are generally considered to have lower environmental impacts than their larger counterparts.
Solar Electricity – Electricity produced from the sun. Solar electricity, also known as photovoltaics, is unlimited in supply and produces no emissions.
Standard Offer - If you have not moved or switched suppliers since 1998, you are on standard offer service. Standard offer prices are set artificially low to help consumers transition to a competitive marketplace. Standard offer is set to expire in Massachusetts in March, 2005, when everyone will become a default service customer.
Transmission - The transport of electricity from the electricity generating facilities across high voltage lines to your local network of lower-voltage electricity distribution wires.
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