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Glossary of Terms

 

 

Electric

Your electric usage is measured and billed using a variety of rate components. Below is a brief description of billing components and some commonly used terminology:

 

 

 

Customer Demand

The highest average rate of electricity consumption measured over a 15-minue interval regardless of the time of day. The highest recorded kW customer demand in the most recent 12 months is used for billing.

 

 

Demand Charge

The rate at which electricity is consumed is measured in kilowatts (kW). This is billed using two types of demand measurement, on-peak demand and customer demand.

 

 

Energy Charge

The amount of energy you used, measured in kilowatt-hours (kWh). A kWh is how energy usage is billed.

 

 

Facilities Charge

A fixed monthly charge to cover a portion of the cost to provide you with safe, dependable electric service. The Facilities Charge is specified in your electric service rate.

 

 

Fuel Cost Adjustment (FCA) (Only Wisconsin Accounts)

When the cost for fuel used to generate electricity is higher or lower than the amount included in your base rate, the Public Service Commission of Wisconsin can authorize an adjustment. If our fuel costs were higher than expected, you will have a FCA charge on your bill. If our costs were lower than expected, you will have a FCA credit.

 

 

Kilowatt Demand (kW)

A measure of the rate at which electricity is used. It stands for 1,000 Watts. It is the product of volts and amperes of resistive loads divided by 1,000. One thousand kWs is a megawatt (MW).

 

 

Kilowatt-hour (kWh)

A measure of the amount of electricity used. A kWh is equal to one kW of power supplied for one hour. A 100-watt light bulb burned for 10 hours uses 1 kWh. One thousand kWhs is a megawatt-hour (MWh).

 

 

Kilovolts (kV)

Specifies the amount of electric force carried through a high voltage transmission line. In the United States, the standard voltage for use in the home is 120 volts. For long transmission purposes, the voltages go as high as 230,000 volts, or even 1,000,000 volts. Sometimes these high voltages are expressed in kilovolts, a kilovolt being equal to 1,000 volts. A 230,000 volt line would be called a 230 kilovolt line.

 

 

KVA

Kilovolt-ampere; the product of volts and ampere divided by 1,000.

 

 

Meter Charge

The monthly meter charge for each meter in excess of one applicable to some rate schedules.

 

 

State Low-Income Assistance Fee

(Wisconsin customers only)

Fee required by Wisconsin state law. The money is sent to the Wisconsin Department of Administration for deposit into the Utility Public Benefits Fund to help fund low-income assistance programs.

 

 

Off-Peak kWh

All electric energy used during all hours other than on-peak hours.

 

 

On-Peak Demand

The highest average rate of electricity consumption measured over a 15 minute interval during on-peak hours only.
Primary rate customers only: Measured demand is converted to billed demand based on how effectively the supplied electricity is used to perform useful work. A variable called Power Factor is used to measure how effectively electricity is used.

 

 

On-Peak kWh

All electric energy used during the on-peak period.

 

 

On-Peak Period

The on-peak hours as defined in the customer's rate schedule excluding those days designated as legal holidays for New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The on-peak hours include 8am to 8pm or 10am to 10pm for customers served on a Primary Rate and 9am to 9pm for customers served on a Secondary Rate.

 

 

Power Factor

Applies only to Primary Rate accounts. It is a measure of how effectively a customer utilizes electricity. The closer the Power Factor is to 100 percent the better, since more of the supplied electricity will be used to perform useful work. In We Energies' pricing mechanism, the amount of measured kW demand is adjusted by a formula driven by a variable known as Power Factor to arrive at the billed kW demand. A Power Factor of 85 percent is neutral. A Power Factor below 85 percent will increase your billed on-peak KW demand, whereas a power factor above 85 percent will reduce your billed on-peak KW demand. Inductive motors make Power Factor worse. (Most of the motors produced are inductive types.) Capacitors can be used to "correct" or improve the Power Factor.

 

 

Power Supply Cost Recovery (PSCR) ( Only Michigan Accounts

When the cost for fuel used to generate electricity is higher or lower than the amount included in your base rate, the Michigan Public Service Commission can authorize an adjustment. If our fuel costs were higher than expected, you will have a PSCR charge on your bill. If our costs were lower than expected, you will have a PSCR credit.

 

 

Primary Rate

A tariffed electric rate for customers who receive electrical service at 3,810 volts or higher. Customers typically own, operate and maintain the step-down transformer equipment required to deliver secondary voltage.

 

 

Secondary Rate

A tariffed electric rate for customers who generally receive secondary electrical service.

 

 

Time-of-Use Rate

A rate structure which bills energy usage (kWh) on the following pricing levels: on-peak and off-peak. On–peak time periods vary by rate.

 

 

 

 

 Gas

Your gas usage is measured and billed using a variety of rate components. Below is a brief description of billing components and some commonly used terminology:

 

 

Basic Distribution Rate

Recovers, in conjunction with the facilities charge, the non-gas costs incurred by the company to deliver natural gas received at delivery points on the company’s distribution system to customers for ultimate consumption.  This rate is applied on a per therm basis.

 

 

British Thermal Unit (Btu)

The quantity of heat that must be added to one avoirdupois pound of pure water to raise its temperature from 58.5 degrees Fahrenheit to 59.5 degrees Fahrenheit under stand pressure.

 

 

CCF

One hundred cubic feet, a unit of measure for nature gas volumes.

 

 

City Gate

A point in the company’s distribution system where the interstate pipeline system connects to the distribution system.

 

 

City Gate Gas Trading Transaction

Transactions that have occurred between multiple buyers and sellers such that the nominations (dekatherms) to the transportation service provider (TSP) exactly match the nominations (dekatherms) submitted to the company’s Web site.

 

 

Competitive Supply Rate

Recovers the non-gas costs incurred by the company to procure natural gas supplies and utilize pipeline services to deliver those supplies to the company’s distribution system.  This rate also recovers a portion of the cost of the company’s peak-shaving facilities.

 

 

Confirmed Transportation Service Provider (Pipeline) Nomination

A nomination is confirmed when the company acknowledges to the transportation service provider (pipeline) that the company will accept and receive the nominated quantity (therms) of natural gas.

 

 

Constraint Period

The period of time following the company’s notification, as described in this tariff, that a constraint condition exists and extending until the company communicates to the customer that the constraint condition no longer exists.

 

 

Curtailment

The reduction of natural gas usage (distribution capacity and/or gas supply) to predefined quantities as stated in contracts, agreements, or tariff which enable a consumer to continue to use natural gas to maintain some level of operation or production.

 

 

Customer Demand Nomination

The quantity (therms) of natural gas the customer plans on consuming for the specified period for the specified gas day.

 

 

Daily Balancing Rate

Recovers a portion of the non-gas costs incurred by the company to provide daily balancing on its distribution system.

 

 

Day of Normal Operation

Any day of operation where no flow restrictions or constraints exist within an operating system.

 

 

Demand Aggregator

The EUT, marketer or agent designated by one or more EUT’s to make TSP Nominations and Customer Demand Nominations to the company on their behalf.  Demand Aggregators may provide a single TSP Nominations and a Customer Demand Nomination on behalf of one or more meters.

 

 

End User Transportation Customer (EUT)

A customer that has natural gas delivered to the company’s distribution system by an entity other than the company itself. 

 

 

Enhanced Other Services Charge

Recovers costs incurred by the company to provide various other services such as conservation and low-income assistance.  This rate is applied on a monthly basis.

 

 

Facilities Charge

Recovers, in conjunction with the Basic Distribution Rate, the non-gas costs incurred by the company to deliver natural gas received at delivery points on the company’s distribution system to customers for ultimate consumption.  This rate is applied on a daily basis.

 

 

Firm

The word firm is commonly used in this tariff to describe customers or services which are not subject to interruption or curtailment, except in the case of emergency situations or force majeure, in the normal course of business.

 

 

Gas Day

A day shall be a period of hours beginning and ending at 9:00 a.m. central time or such other 24-hour period compatible with pipeline contracts. During changes to and from daylight savings time, the day shall have 23 and 25 hours, respectively.

 

 

Gate Station

The physical equipment which monitors the flow of gas at the city gate.

 

 

Henry Hub Daily Cash Price

This is the daily price of natural gas as published in the Wall Street Journal.

 

 

Heat Factor

The ratio used to translate volume (CCF) into therms.

 

 

High Flow Constraint Period

A period of time when the distribution system is experiencing high demand for flowing gas quantities and one in which the company determines that the expected system demand shall exceed the expected supplies being delivered to its city gate.

 

 

Holidays

Legal holidays for the company are New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Company (not legal) holidays are Good Friday, Friday after Thanksgiving, Christmas Eve Day, and New Year’s Eve Day.

 

 

Interruption

The reduction of natural gas usage (distribution capacity and/or gas supply) to the minimum allowable quantities which have been predetermined by contracts, agreements, or tariff which enable an end user customer to continue to use natural gas at such an incidental level as to preclude the customer from maintaining normal operation or production.

 

 

Intra-Day Constraint

A constraint period called by the company after the start of the gas day of gas flow whereby the customer is notified that a constraint condition exists during that day of gas flow.  An intra-day constraint period will not extend beyond the current day of gas flow.

 

 

Intra-Day Nomination

Per the North American Energy Standards Board (NAESB), a nomination submitted after the nomination deadline whose effective time is no earlier than the beginning of the gas day and runs through the end of that gas day.

 

 

Level I Curtailment, Interruption, or Constraint Order

A Level I order is generally called when the distribution system’s operating conditions or the prevailing gas supply economics are such that natural gas supplies and demands, in the company’s opinion and sole discretion, must be aligned as closely as possible.

 

 

Level II Curtailment, Interruption, or Constraint Order

A Level II order is generally called when the distribution system, pipeline delivery system or other gas supply/distribution resources dictate, at the sole discretion and interpretation of the company, that it is critical that gas supply and demand be aligned, whether for system integrity, economics or safety reasons.

 

 

Local Distribution Company (LDC)

A gas utility that receives natural gas supply quantities at its city gate(s) and then distributes this quantity of natural gas to its metered end user customers for their consumption.

 

 

Low flow Constraint Period

A period of time when the distribution system is experiencing low demand for flowing gas quantities and one in which the company determines that the expected system supply shall exceed the expected demand.  The transportation customers shall be required to use all gas quantities delivered to the city gate on their behalf.

 

 

Map

Maps of operating systems are located at http://www.we-energies.com.

 

 

Marketer, Agent, or Demand Aggregator

An entity providing gas supply or gas supply-related services to one or more customers on the company’s distribution system, and who itself may or may not be a customer of the company.  Agents are not customers of the company

 

 

Maximum Daily Quantity (MDQ)

The maximum daily demand (therms) that can be consumed during a single gas day.

 

 

Non-LDC Balancing Service (NLBS)

Balancing services procured by end user transportation customers (EUTs), marketers, and its agents by pipelines that reconcile city gate delivered natural gas with the EUT’s metered usage such that the EUT, marketer, and/or its agent does not use the company for balancing on a given gas day.

 

 

Non-LDC Balancing Service Nomination

The volume of gas, that was confirmed and allocated by the pipeline, nominated by an EUT, marketer, agent, or demand aggregator for injection into or withdrawal from that party’s storage account with the pipeline.  This nomination may also serve the purpose of invoking the non-LDC balancing service (NLBS).

 

 

Overtake

The situation where an end user transportation customer (EUT), marketer, or its agent has metered usage that is greater than the quantity of natural gas it had delivered to the company’s city gate plus any gas provided under other company services.

 

 

Pipeline Nomination

The quantity (therms) of natural gas nominated to the pipeline (transportation service provider) that the end user transportation customer (EUT) requests to have delivered to the company’s city gate.

 

 

Pipeline Allocated Quantity

The final quantity (therms) of natural gas that the pipeline will credit at the end of the gas day to the end user transportation customer (EUT) at the company’s city gate.

 

 

Pool

One or a group of end user transportation customers (EUTs) whose nominations and actual usage are aggregated for the purpose of determining daily imbalances and the application of the associated rates and/or penalties.

 

 

Selected Market Index Value

The selected market index value is the Chicago Flowing Gas Daily index prices as published in Gas Daily.

 

 

Shipper

The shipper is the party that is transporting gas on an interstate pipeline for an EUT, marketer, and/or its agent.  An EUT moving its own gas on a pipeline transportation agreement in its own name would also be a shipper.

 

 

Therm

A unit of heating value equivalent to 100,000 British thermal units (Btu).

 

 

Undertake

The situation where an end user transportation customer (EUT), marketer, or its agent has metered usage that is less than the quantity of natural gas it had delivered to the company’s city gate.

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