Confusing Energy Terms

by Donny on December 9, 2010

When you look at your electricity bill or plans, do you ever see terms and wonder what the heck it means, and just can’t make heads or tails of it no matter how hard you try?

I’ve been there, and at times I’ve done nothing about it, but the more you understand about your energy bill, the better. Don’t just assume the supplier knows what it’s doing. It doesn’t hurt to ask.

Not to mention, the more you know about your bill, the more likely you are to find the most affordable electricity.

Anyway, after having this experience, I came across some terms that puzzled me in the past and hopefully I can help you better understand them.

  • ABM (Agent, Broker, Marketer):  This is what they call a business or businessman who sells electricity or gas.
  • Demand: The amount of electricity being used, measured in Kilowatts.
  • Green Energy: This is “clean energy” produced from renewable or non-polluting sources.
  • Kilowatt: The measurement of electricity used at one time.
  • Kilowatt hour: The measurement of electricity being used over a long-term period. If one 100 watt light bulb is used for 10 hours, it’s 1000 watt hours, or one kilowatt hour.
  • Standard Supply Service (SSS): This is the electric rate you will be charged if you stay with you stay with your current electric provider.
  • Stranded Cost: If you live in a deregulated area, and decide to switch companies, there may be fees for benefits from your old supplier that they can’t legally collect. Those fees are known as stranded costs.
  • Wheeling: This is the transportation of energy from point A through point B to get to point C. For example: If electricity is generated in North Texas, (Point A) and is used in South Texas (Point C), it will have had to go through Central Texas (Point B).

Hopefully this helped to shine a little light on any confusion, and if you can think of any more terms that might be confusing, please let us know by leaving a comment.

If you have any further questions or comments, please feel free to give us a call anytime at 1-800-971-4020, and one of our expert consultants will be happy to help you out with any of your energy needs.

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