Use and Usage

automated meter reading (AMR)

(AMR) Specially equipped metering devices that allows utilities to remotely collect kilowatt-hour use (and in some cases demand) information and transfer it to a central database for billing and/or analyzing purposes. Data, which flows just one way, can be gathered and sent via drive-by or walk-by readings as well as radio frequency, powerline (note one word) carrier, telephone lines, or wireless systems.

power marketing administrations

(PMAs) The umbrella term for the federal Bonneville Power Administration (BPA), Southeastern Power Administration (SEPA), Southwestern Power Administration (SWPA), and Western Area Power Administration (WAPA). PMAs sell wholesale power at-cost from 134 federal hydropower projects owned and operated by the U.S. Army Corps of Engineers or the federal Bureau of Reclamation (as well as one managed by the U.S. State Department International Boundary and Water Commission), giving first priority to the electricity (under the preference principle) to not-for-profit, consumer-owned electric cooperatives and publicly owned municipal electric systems. More than 600 electric cooperatives and 500 municipal electric systems in 34 states, serving 50 million consumers, receive power from a PMA. The multipurpose dams that churn out mostly baseload generation for the PMAs account for approximately 48 percent (roughly 38,000 MW) of the country's hydroelectric output—preventing an estimated 85.5 million tons of carbon dioxide emissions from entering the atmosphere each year. Most entered service during a 25-year stretch between the late 1930s and early 1960s.

photovoltaics

(PV) Materials that generate electric power directly from sunlight.

regional transmission organization

(RTO) An entity established to ensure non-discriminatory access to transmission systems on a regional basis, perform regional transmission planning, implement and operate competitive wholesale power markets, and improve regional system reliability. The voluntary formation of RTOs was encouraged by the Federal Energy Regulatory Commission (FERC) under Order 2000 issued on December 20, 1999. RTOs perform similar functions as independent system operators (ISOs) but have expanded authority and cover larger, multi-state geographic areas. Both ISOs and RTOs are subject to FERC jurisdiction. The nation's seven existing RTOs/ISOs are Valley Forge, Pennsylvania-based PJM Interconnection; Carmel, Indiana-headquartered Midcontinent Independent System Operator; ISO New England in Holyoke, Massachusetts; New York ISO in Rensselaer, New York; California ISO in Folsom, California; Electric Reliability Council of Texas in Austin, Texas; and the Southwest Power Pool in Little Rock, Arkansas. There are also three RTOs in Canada: Alberta Electric System Operator, New Brunswick System Operator, and the Ontario Independent Electricity System Operator. The annual RTO Report Card produced by the National Rural Electric Cooperative Association finds that RTOs have not done a satisfactory job of encouraging investment in generation and transmission because their short-range markets do little to reduce long-term risk. In addition, RTOs have not made much progress in allowing all generators within a region to compete against one another on all price levels.

Red Flags rule

A Federal Trade Commission regulation aimed at stemming the tide of identity theft. It required electric cooperatives, like all utilities with "covered accounts," to implement identity theft prevention programs by November 1, 2008. Enforcement was delayed three times before finally kicking in on December 31, 2010.

Action Committee for Rural Electrification (ACRE® )

A bipartisan political action committee formed by the National Rural Electric Cooperative Association in 1966 that gives financial support to congressional and state legislative candidates friendly to electric cooperatives. ACRE does not get involved in presidential, gubernatorial, statewide row office, judicial, or municipal races. Forty-nine percent of all ACRE funds are returned to state ACRE committees, based on each state's contributions. All ACRE contributions are voluntary, and membership includes electric cooperative employees, directors/trustees, attorneys, chief executives, spouses, and consumers. Spell out on first reference; use registered trademark symbol with acronym on first reference.

avoided cost

A calculation that estimates the expense an electric utility incurs to supply or generate a certain amount of power. In practice, it refers to the price that qualifying facilities under the Public Utility Regulatory Policies Act of 1978 are entitled to receive for excess power sold to a utility. Avoided cost is established at the price a utility would have paid for power had it not purchased from a qualifying facility.

Willie Wiredhand

A cartoon figure created on October 30, 1950, by Andrew "Drew" McLay, a freelance artist working for the National Rural Electric Cooperative Association. Adopted as the official electric cooperative mascot in 1951, and awarded trademark protection following a January 7, 1957, ruling by a three-judge panel from the Fourth U.S. Circuit Court of Appeals. Willie Wiredhand features a lamp's socket head, wire arms, two-prong plug legs, and insulated lineworker gloves.

power supplier

A company that provides electricity, either by generating it or by arranging for its delivery to a consumer.

advanced metering infrastructure (AMI)

A comprehensive set of technologies and software applications that combine two-way communications with smart meters to provide electric utilities— using frequent meter reads—with near real-time oversight of system operations.

power line

A conductor (wire) that carries electricity from a generation source to a supplier or the ultimate consumer. Two words in this usage.

circuit

A conductor, such as wire, through which electric current flows; also the path electric current takes from a power source to a device using the power and then back to the source.

lightning arrester

A device that protects electric utility equipment against damage caused by power surges from lightning strikes.

capacitor

A device that stores electrical charges and maintains voltage levels in power lines to improve electric system efficiency.

meter

A device used to measure and record the amount of electricity used by a consumer. Newer models also communicate readings and other data with a utility.

transformer

A device used to raise or lower voltage along electric distribution or transmission lines.

smart meter

A digital electric meter that identifies consumption patterns in detail over various time intervals, then uses two-way communications to transmit the information back to a local utility for power quality monitoring and billing purposes. Smart meters also let electric consumers react to electricity price signals and more actively participate in utility demand-response programs. Quick bite: Utilities are replacing old analog meters with digital meters that can receive and transmit data about electric use. The new meters can also provide information that helps a utility diagnose outages and improve power quality.

incentive rate

A discount used to attract economic development or encourage consumption of electricity during periods of low power use.

Supervisory Control and Data Acquisition (SCADA)

A distribution monitoring system that supplies data from substations, feeders, control breakers, and switches to a main command center; manages demand-response/load management efforts; keeps an eye on down-line devices; and controls capacitors.

Federal Energy Regulatory Commission (FERC)

A federal agency formed in 1977 with jurisdiction over interstate electricity sales, wholesale electric rates, natural gas pricing, oil pipeline rates, as well as hydroelectric licensing. FERC also reviews and authorizes liquefied natural gas terminals, interstate natural gas pipelines, and non-federal hydropower projects. Part of the U.S. Department of Energy, but functions independently. FERC replaced the Federal Power Commission.

Low Income Home Energy Assistance (LIHEAP)

A federal welfare program created in 1981 that offers financial support to eligible low-income households for paying home heating or cooling bills. Each state, territory, and tribal government receives LIHEAP funds as a block grant from the federal Administration for Children & Families (a division of the U.S. Department of Health and Human Services) and then operates individual programs. Applicants for LIHEAP cash grants and crisis payments must have an annual household income of less than 150 percent of the federal poverty level or 75 percent of state median income, whichever is greater; some states provide supplemental appropriations to expand coverage. LIHEAP provides a critical safety net for struggling electric cooperative consumers since rural communities have limited access to alternative energy assistance sources, like private fuel funds used in many large cities. The program also helps electric cooperatives absorb costs of delinquent accounts. Most state LIHEAP efforts include weatherization support, where contractors replace broken windows or install more energy-efficient furnaces.

Form 7

A financial and statistical report filed annually by federal Rural Utilities Service and (in a slightly different version) National Rural Utilities Cooperative Finance Corporation distribution borrowers. Generation and transmission cooperatives file Form 12 with the Rural Utilities Service.

current

A flow of electrically charged particles, measured in amperes.

alternating current (AC)

A flow of electricity through a conductor that reverses direction at regularly recurring intervals, in contrast to direct current (DC). AC allows for the long-distance transport of high- voltage electricity. Nearly all of the electricity consumed in the United States arrives via alternating current. Spell out on first reference.

tidal power

A form of hydrokinetic power that converts mechanical energy from the motion of tides into electricity.

natural gas

A gaseous fossil fuel consisting primarily of methane but including significant quantities of ethane, propane, butane, and pentane used for electric generation, heating, cooking, and public transportation. Natural gas, most commonly used as a fuel for peaking plants rather than baseload generation, accounts for about 16 percent of the power produced by generation and transmission cooperatives and 18 percent of all electric cooperative power requirements nationwide; overall, it makes up 32 percent of U.S. electric generation. Natural gas compressor stations are largest collective load for electric cooperatives nationwide.

global warming

A gradual warming of Earth's atmosphere thought by many scientists and public opinion leaders as being caused by increased concentrations of water vapor and greenhouse gases like carbon dioxide. Human activities, such as the burning of fossil fuels, increase concentrations of greenhouse gases that absorb outgoing radiation and trap heat closer to the ground. However, a significant number of climatologists argue that natural cyclical factors, such as a boost in solar radiation, changes in oceanic conveyors, and increased volcanic activity may play a much larger role.

light-emitting diode (LED)

A highly efficient digital electronic component that emits light when an electrical current is applied in the forward direction of the units. Widely used for indicator lights and digital readouts on appliances and increasingly in higher power applications such as home lighting, flashlights, dusk-to-dawn lights, and traffic signals.

baseload power plant

A large, efficient generating station—typically with a capacity factor of at least 65 percent—that provides dependable electric power year-round at a low cost per kilowatt-hour. Coal- fired, nuclear, hydro, and (increasingly) large natural gas-fired power plants make up most baseload generation in the United States, although smaller-scale biomass facilities (such as anaerobic digesters and plants burning wood waste, poultry litter, or landfill gas) and geothermal power systems, if properly operated, can also produce baseload power output (though in much smaller quantities). High- temperature solar thermal energy (concentrating solar power) has begun making inroads as a baseload power source in the Southwest.

consumer charge

A levy sometimes used to recover fixed costs for serving individual accounts. These costs are recovered through a flat charge, regardless of the amount of energy used.

oil

A liquid fossil fuel found in rock formations consisting of a complex mixture of hydrocarbons and other organic compounds. Refined and distilled, it can be turned into a variety of products such as asphalt, diesel fuel, gasoline, heating oil, jet fuel, kerosene, lubricants, paraffin wax, sulfuric acid, tar, and aromatic chemicals. More accurately referred to as petroleum. Oil, primarily diesel fuel, accounts for less than 1 percent of the power produced by generation and transmission cooperatives and about 1 percent of all electric cooperative power requirements nationwide; overall, it makes up 2 percent of U.S. electric generation. Oil has been the largest primary source of energy in the U.S. since 1950.

gigawatt

A measure of electric capacity equal to 1 billion W, 1 million kW, or 1,000 MW. On average, 1 GW of electricity will power between 800,000 and 1 million homes. The United States needs to add 264,000 MW, or 264 GW, of generating capacity by 2030 to keep the lights on. Abbreviation acceptable on first reference when used with a numeral.

British thermal unit (Btu)

A measure of energy, it's the amount of heat needed to raise the temperature of one pound of water by one degree Fahrenheit. Abbreviation acceptable on all references.

ampere (A)

A measure of how much electricity moves through a conductor, and indicating the size of circuit breakers and fuses. Amperes equal watts (W) divided by volts (V); a 1,000-W heater at 120 V draws 8.33 A. Abbreviation acceptable on first reference when used with a numeral.

combined cycle

A method of generating power from waste heat created by one or more combustion turbines. High-pressure, high-temperature exhaust from the turbines can be captured to make steam and power a turbine-generator that produces additional electricity. The process greatly increases generating efficiency at low cost with zero emissions. A form of cogeneration, it's also known as waste-heat recovery. In a combined cycle power plant, waste heat from a natural gas-fired turbine powers a steam turbine.

first in, first out

A method of retiring capital credits where the earliest allocated credits are retired first.

last in, first out

A method of retiring capital credits where the latest allocated credits are retired first.

dynamic pricing

A method of setting rates where the retail price for electricity varies according to the cost of wholesale power at the time it's consumed. While dynamic pricing can include relatively simple time-of-use rates, it typically refers to prices that track wholesale power costs in real-time.

real-time pricing

A method of setting rates where the retail rate for electricity varies on an hourly or more frequent basis as the price of wholesale power changes.

nuclear power

A method whereby steam, produced from water heated to a boil through nuclear fission, spins a turbine to generate electricity. In nuclear power plants, a reactor contains a core of nuclear fuel, primarily enriched uranium. When uranium atoms are hit by neutrons they fission (split), releasing heat and more neutrons. Under controlled conditions the neutrons keep striking more uranium atoms, creating a self-sustaining chain reaction used to boil water. Nuclear power accounts for 10 percent of the electricity produced by generation and transmission cooperatives and 14 percent of all electric cooperative power requirements nationwide; overall, it makes up 19 percent of U.S. electric generation. Research on producing nuclear fission through a molten-salt reactor—using a liquid mixture of salts, some being salts of uranium and thorium—instead of uranium is taking place as well.

grid

A network of interconnected high-voltage transmission lines and power generating facilities that allows utilities and other suppliers to share resources on a regional basis. The North American Electric Reliability Corporation oversees reliability of the electric grid covering the United States, most of Canada, and the Mexican state of Baja California Norte. The nation's electric grid consists of three main sections: the Eastern Interconnection, which extends from the foot of the Rocky Mountains to the Atlantic seaboard, excluding most of Texas; the Western Interconnection, which runs from the Rocky Mountains to the Pacific coast; and the Texas Interconnection, which covers most of Texas. Also, any network of interconnected electric facilities, including a distribution system.

R-value

A number showing the ability of insulation to resist the transfer of heat. Higher R-values indicate more effective insulation.

demand charge

A pricing structure for electricity based on the maximum amount of system power a consumer uses.

class rate

A pricing structure given to similar groups of electric consumers, such as residential, commercial, or industrial users.

ratchet rate

A pricing structure incorporated into utility rate designs to minimize the risk of providing service to consumers whose loads vary throughout the year. The ratchet spreads out costs over an annual basis, based on maximum past or present electric demand. For example, if peak demand during summer hits 500 kW and the rate design includes a 50 percent ratchet, the minimum billing would be 250 kW for following months, even if actual demand was lower.

declining block rate

A pricing structure where a consumer pays less for electricity as use increases beyond one or more fixed kilowatt-hour amounts during a specific billing period.

demand rate

A pricing structure where a consumer, usually a large commercial or industrial account, pays for electricity based on the maximum kilowatts used during times of peak demand.

cost-based rate

A pricing structure where consumers in each class (residential, commercial, and industrial) pay their fair share of a cooperative's costs so no group subsidizes another.

step rate

A pricing structure where consumers pay a different amount depending on kilowatt-hours (kWh) used; the more kWh a consumer uses, the cheaper the cost of each kWh.

block rate

A pricing structure where consumers pay a specific amount for a set amount of kilowatt- hours (kWh), with the price per kWh changing as set quantities are exceeded. For example, the first 100 kWh may cost 10 cents per kWh, the next 100 kWh may cost 8 cents per kWh, and all additional kWh may cost 6 cents per kWh. Under this type of rate, charges may also increase as thresholds are crossed.

flat rate

A pricing structure where consumers pay the same rate for each kilowatt-hour of electricity used, regardless of how much they consume.

interruptible rate

A pricing structure where consumers, mostly large commercial and industrial accounts, pay a lower rate for electricity in exchange for giving a utility the right to cut off service temporarily during periods of high demand.

time-of-use rate

A pricing structure where the cost for electricity varies according to the time when it's consumed. Time-of-use rates can include on/off-peak rates, critical-peak pricing, dynamic pricing, and real-time pricing.

times interest earned ratio (TIER)

A ratio of margins to long-term interest expense, indicating the ability of an electric cooperative to meet financial obligations. TIER equals long-term interest plus margins divided by long-term interest; essentially, the number of times a cooperative's earnings cover interest payments on long-term debt. A cooperative with interest costs of $100,000 and margins of $150,000 has a TIER of 2.5. The federal Rural Utilities Service requires electric cooperative borrowers to maintain a minimum TIER of 1.25.

efficiency

A ratio of the work or energy output over the amount of energy input.

biomass

Biological material that can be used as a fuel or exploited for industrial purposes (such as chemicals, fibers, plastics, etc.). In electricity generation, biomass consists of two types: closed-loop biomass (trees or crops grown expressly for power production) and open-loop biomass (sawdust, tree trimmings, timber slash, wood chips, farm byproducts, animal waste, and landfill gas).

pole attachments

Cables and related equipment, typically deployed by telephone, cable TV, and broadband companies, that "piggyback" on electric utility poles, conduits, and rights-of-way for a fee. Electric cooperatives base pole attachment rates and terms on local costs and conditions, not profit. As a result, the federal Telecommunications Act of 1996 exempts electric cooperatives from Federal Communications Commission pole attachment rate-setting authority, an exemption first established by Congress in 1978.

rolling blackouts

Controlled power outages designed to lessen the threat of a major cascading outage, caused by short supply and high demand for power affecting major transmission systems. Rolling blackouts are scheduled for predetermined sectors of the transmission grid at timed intervals. This spreads the burden of power shortages across an entire region for short, manageable periods (usually no more than a few hours) rather than allowing imbalances to destabilize the grid and cause extended, unplanned blackouts that can jeopardize public safety and damage sensitive equipment.

wind power

Converting the kinetic energy present in wind motion to produce electricity. At the end of 2015, the U.S. boasted 70,000 MW of wind power generating capacity, more than 4 percent of the nation's total.

operating expenses

Costs needed to generate electricity, such as those associated with running a power plant, maintenance, taxes, and depreciation.

distributed generation (DG)

Decentralized generation technologies designed to supplement or replace power produced by large generating plants. In most cases, distributed generation is located at or near the point of use. For homeowners and farmers, examples include standby, or emergency, generators that run on gasoline, diesel fuel, or natural gas and "backyard" renewable energy systems such as anaerobic digesters, small wind turbines, rooftop solar photovoltaic arrays, and microhydro projects. Factories may rely on cogeneration that uses natural gas or industrial waste products as fuel. In situations where an unscheduled outage could result in tens of thousands of dollars of lost production and possibly damaged equipment or dead animals and ruined produce, many commercial and industrial consumers— like manufacturers, data centers, retail outlets, hospitals, and large livestock and poultry operations— install diesel and natural gas-fired generators or combustion turbines or even fuel cells as a supplemental power supply to protect their livelihood and enhance service reliability. Dispatchable DG designs—such as properly sited and operated back-up generators managed together—potentially can create a virtual power plant to firm up intermittent solar and wind power, deliver emergency capacity more quickly than combustion turbine peaking plants, relieve transmission congestion, provide voltage and frequency support, and be used as a part of a load management program to reduce peak demand. In return for allowing their DG units to be tapped in these ways, consumers usually receive a reduced electric rate or other considerations like free fuel and interconnection costs or generator maintenance. Also called consumer-owned generation, on-site generation, dispersed generation, or distributed energy.

wheeling

Delivering large amounts electricity from a generating plant to a distribution system across another utility's transmission lines.

National Electrical Safety Code (NESC)

Developed by IEEE, it sets ground rules for worker safety during the installation, operation, and maintenance of electric and telecommunication lines and associated equipment. A publication title, italicize. Electric cooperatives that are federal Rural Utilities Service borrowers must comply with all sections of the code.

geothermal power

Electricity produced using natural heat contained in rocks, hot water, and steam below Earth's surface. Three primary geothermal power plant technologies exist: dry steam, flash, and binary cycle. The choice depends on the state of the hydrothermal fluid (whether steam or water) and its temperature. Dry steam, the first type of geothermal power plants built, use steam from a geothermal reservoir (as pulled from wells) and route it directly through turbine-generators to create electricity. Flash steam plants, the most common variety today, pump water boasting temperatures greater than 360 degrees Fahrenheit under high pressure to generation equipment on the surface. Binary cycle power plants use moderate- to low-temperature water or steam and a secondary fluid within a closed-loop system to spin a turbine-generator.

off-peak rate

Electricity supplied during periods of low consumption.

line loss

Electricity that dissipates in the process of distributing or transmitting it over power lines.

direct current (DC)

Electricity that flows through a conductor in a single direction. Spell out on first reference.

solar power

Energy absorbed from photons (elementary particles) in sunlight and converted into heat or electricity.

kilovolt-amper

Equal to 1,000 VA. Abbreviation acceptable on first reference when used with a numeral.

megawatt

Equal to 1,000 kW or 1 million W, it measures either a utility's capacity, a generating unit's capacity, or a consumer's demand or load. Abbreviation acceptable on first reference when used with a numeral.

reliability

Every utility's goal of providing uninterrupted electric service to consumers.

fixed costs

Expenses that stay the same regardless of other factors or the level of sales. A distribution cooperative's fixed costs would include rent, utilities, taxes, and depreciation on buildings.

Occupational Safety and Health Administration (OSHA)

Federal agency that sets safe workplace standards and enforces its rules through periodic inspections.

operating reserve

Generating capacity available within a short period of time to meet demand in case a power plant goes down or another supply disruption occurs. Most power systems are designed so that, under normal conditions, the operating reserve always matches the capacity of the largest generator plus a fraction of peak load. The operating reserve can be divided into spinning reserves and supplemental reserves.

hydrokinetic power

Generation produced by the action of waves or tides.

fossil fuel

Hydrocarbon-based material such as coal, oil, or natural gas found within the top layer of Earth's crust and used to produce heat or power; also called conventional fuels. These materials were formed in the ground hundreds of millions of years ago from plant and animal remains.

agribusiness

Includes all forms of enterprises involved in getting food from field to table, ranging from producing, processing, storing, and distributing commodities to manufacturing and selling farm equipment and supplies.

bulk power

Large amounts of electricity shipped across a transmission system, generally on a wholesale level.

bus-bar

Large conductors that carry electricity out of a power plant.

deregulation

Major reduction of government oversight of private industry. To better describe legislative and regulatory initiatives aimed at allowing retail electric consumers to choose between competing electric generation suppliers, use restructuring, as many aspects of utility regulation still remain.

capital credits

Margins credited to cooperative members each year based on their purchases (in the case of electric cooperatives, electricity) from the cooperative. Used by the cooperative as working capital for a period of time, then paid back to individual members. Also called patronage capital or equity capital. Capital credits should not be confused with profits, which are a return on capital. Retirement of capital credits provides a return of member-furnished capital. Use "s" on credits in all cases, as no cooperative retires, and no consumer receives, just one "credit." Also: for legal reasons, capital credits can be "retired" or "allocated," but not "refunded."

conductor

Material that allows an electric current to pass through; also, the wire or cable that carries electricity across an electric distribution or transmission system. When describing distribution facilities in particular, use wire or line to avoid confusion.

insulators

Material used to prevent the escape of electricity, heat, or sound.

operating revenues

Money a utility receives from selling goods and services.

quorum

Number of members who must be present for an electric cooperative to legally conduct business. Usually established in a cooperative's bylaws.

mill

One-tenth of a cent. Used as a measure of electric energy bought and sold.

climate change

Periods of freezing and warming experienced by planet Earth. Policymakers are now focused on finding ways to reduce man-made greenhouse gas emissions blamed for contributing to what many scientists contend is a current cycle of global warming. Electric cooperatives, which support an "all-of-the-above" energy strategy for the nation, are encouraging elected officials to make sure that any climate change solutions adopted are "fair, affordable, and achievable" and can be sustained economically and politically for decades to come.

open access

Permitting wholesale power suppliers and sellers to move power over the transmission lines of other utilities.

distribution system

Poles, wire, substations, and transformers used to deliver electric energy to consumers. Electric cooperatives own and maintain 2.6 million miles of distribution lines―43 percent of the nation's total— spanning 75 percent of the United States.

load forecasting

Predicting a utility system's load and kilowatt-hour sales growth.

market-based rate

Price for generation based solely on what can be obtained in an open marketplace. This differs from cost-of-service rates, which are tied to the cost of construction and operation of facilities necessary to produce electricity.

cost-of-service rate

Price for power based on covering expenses associated with constructing and operating facilities necessary to produce and deliver electricity.

cogeneration

Producing both electricity and heat from a single source, such as tapping waste heat from an industrial process to generate electricity or using waste heat or steam from electric generation to boost industrial output or assist with heating. The U.S. Department of Energy Oak Ridge National Laboratory finds that increased deployment of cogeneration could meet close to 20 percent of the nation's power needs by 2030, up from 9 percent presently. Also known as combined heat and power.

demand response

Programs or mechanisms that reduce electricity consumption based on market signals or other incentives. Demand response includes direct control of specialized appliances and equipment (notably large-capacity, grid-enabled electric resistance water heaters, electric thermal storage furnaces and room heating cabinets, air conditioning, and dual fuel systems), time-of-use rates, interruptible contracts with large commercial and industrial accounts, dispatch of consumer-owned (distributed) generation into the wholesale power market, battery storage, personal energy management, and other initiatives. As of 2014, electric cooperatives could control 6 percent of their peak load through demand-response activities, including approximately 1,440 MW of residential load. Although cooperatives account for only about 10 percent of total retail electricity sales nationally, their combined demand-response resources equal almost 20 percent of the demand-response capacity of the entire electric sector.

carbon sequestration

Removing carbon dioxide from (or before it enters) the atmosphere by both natural (crops, forests, oceans, soil, and vegetation) and man-made means. Synonymous with the "storage" part of carbon capture and storage.

coal ash

Residues, such as bottom ash, fly ash, scrubber sludge, and slag, generated by coal-fired power plants. Often used interchangeably with the term coal combustion byproducts or coal combustion residuals. Most coal ash, more than 70 million tons per year, ends up in impoundments and landfills. On December 19, 2014, the U.S. Environmental Protection Agency issued a rule that continues regulating coal ash as non-hazardous waste, confirming four previous non-hazardous determinations. The rule also included a compliance option allowing states to incorporate the federal criteria in their individual waste management plans.

usage, use

Since usage primarily refers to language practice, the preference in all other contexts, including electricity, is use: Load management helps reduce electric use; Joe's monthly electric bill shows a decrease in kilowatt-hour use. Many electric cooperatives and other utilities over the past decade have elected to use electric use on bill statements and other documents for this reason.

renewables

Sources of energy that are naturally replenishable, including wind, solar, biomass, geothermal, hydro, and hydrokinetic (ocean wave and tidal) power. Non-hydro renewables account for less than 1 percent of the power produced by generation and transmission cooperatives and nearly 3 percent of electric cooperative power requirements nationwide; overall, renewables make up 8 percent of U.S. electric generation. Nationwide, cooperatives own more than 790 MW of non-hydro renewable energy generation with another 5,200 MW under long-term contract (roughly 90 of it being percent wind)—in addition to roughly 10,000 MW of preference power from contracts with federal hydroelectric facilities.

cost of service

The "price tag" of providing a consumer with electricity, excluding generation.

member/member-owner

The actual person(s) listed on an account who receive service from an electric cooperative. In most cases, the number of members served by a cooperative differs from the total number of consumers served (not all consumers are members, as some are children, etc.) or the number of meters served (since some accounts have more than one meter). Members of the National Rural Electric Cooperative Association and National Rural Utilities Cooperative Finance Corporation are not-for-profit cooperatives and rural electric systems, not actual consumers (people).

load

The amount of electric power drawn at a specific time from an electric system, or the total power drawn from the system.

peak load

The amount of electric power required by a consumer or a utility system during times when electric consumption reaches its highest point; measured in kilowatts or megawatts.

demand

The amount of electricity drawn from an electric system at a given time, measured in kilowatts.

operating income

The amount of money remaining to a utility after operating expenses are deducted from operating revenues.

kilowatt (kW)

The basic unit of electric demand, equal to 1,000 W. A measure of both a utility's capacity and a consumer's demand or load. Abbreviation acceptable on first reference when used with a numeral.

conservation

The careful and wise use of resources, as well as changes in consumer behavior to save energy. Conservation differs from energy efficiency in that behavioral changes center on cutbacks aimed at using less electricity.

rate

The cost per kilowatt-hour for electricity.

margin

The difference between a cooperative's income and its expenses; returned to members in the form of capital credits as the cooperative's financial status permits.

peak demand

The electric utility industry's equivalent of rush-hour traffic, when power costs run the highest. It's the greatest demand placed on an electric system, measured in kilowatts or megawatts; also, the time of day or season of the year when that demand occurs.

Clean Air Act

The federal law (passed in its modern form in 1970) that serves as the backbone of efforts to control air pollution in the United States. It requires the U.S. Environmental Protection Agency (EPA) to develop and enforce regulations that protect the general public from exposure to airborne contaminants hazardous to human health. The statute was reauthorized and significantly amended in 1977 (with the inclusion of New Source Review provisions) and again in 1990 (creating a cap-and-trade program to curb emissions of acid rain-causing sulfur dioxide from power plants and other large stationary sources, like factories and refineries, and requiring those same sources to install and operate reasonably available control technology to reduce emissions of nitrogen oxides, a chief contributor to smog). In April 2009, EPA announced it was ready to use the Clean Air Act to curtail the release of carbon dioxide and five other greenhouse gases—methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride—blamed for causing climate change. In December 2009, EPA found emissions of the six greenhouse gases from motor vehicle engines endanger public health and welfare; based on the endangerment finding, the agency proposed the first- ever carbon dioxide emissions standards for passenger cars and light-duty trucks, covering model years 2012 through 2016. The agency has since been working on regulations to control greenhouse gases from power plants, using Section 111(b) of the act for new and modified/reconstructed facilities and Section 111(d) for existing facilities. Opponents of the greenhouse gas rules, like electric cooperatives, question the legality of regulating power plants under different sections of the law.

service area/territory

The geographic region that a utility is required to serve, or has the exclusive right to serve, in supplying electricity to the ultimate consumer.

carbon footprint

The impact human activities have on the environment based on the amount of greenhouse gases produced as measured in units of carbon dioxide. Individuals, nations, and organizations (like electric cooperatives) can use the calculations to conceptualize their contribution to climate change.

base load

The minimum amount of electric power delivered or required from a generating system over a specified period; usually measured in megawatts.

facilities charge

The part of a consumer's electricity bill paid as reimbursement for equipment used to generate, transmit, and distribute electricity.

base rate

The portion of a total electric rate that covers the cost of doing business unrelated to fuel expenses.

capacity

The potential for generating power, measured in kilowatts or megawatts, of a power plant. Also the electric load, measured in watts or kilowatts, of a piece of electrical equipment.

eminent domain

The power of a government body to condemn private property for public use after paying the property owner "just compensation." Sometimes used as a last resort by electric utilities in constructing power lines.

transmission

The process of moving large amounts of electricity from where it's generated to where it's used, as well as the facilities needed to move that power.

cyber security

The process of protecting data and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction. Critical infrastructure protection standards issued by the North American Electric Reliability Corporation are designed to defend bulk power systems from "cyber-tage." Use as two words.

generation

The production of electricity using fuels such coal, natural gas, oil, and uranium or from renewable sources such as a biomass, geothermal, hydro, hydrokinetic (ocean wave and tidal), solar, or wind.

watt (W)

The standard unit of electric power, equal to 1/746 hp or 1 J per second. Named for James Watt, a nineteenth century engineer from Scotland. Abbreviation acceptable on first reference when used with a numeral. People convert energy—measured in barrels of oil, tons of coal, and cubic feet of natural gas, for example—into power, tabulated in watts or horsepower. Operating a 60-W lightbulb requires power, measured in watts. After an hour, when you switch off the light, you can measure the amount of energy that was consumed in joules or kilowatt-hours or even British thermal units.

non-coincidental peak

The sum of two or more utility system load peaks that do not occur at the same time. Meaningful when considering peak loads within a limited period, such as a day, week, month, and a heating or cooling season.

coincidental peak

The sum of two or more utility system load peaks that occur during the same time.

carbon capture and storage (CCS)

The technical process of separating carbon dioxide gas from power plant emissions (primarily coal- or natural gas-fired generation); compressing it; pumping it down into spent oil and natural gas wells, saline reservoirs, or inaccessible coal seams; and entombing it there forever.

system demand

The total amount of energy required to supply all consumers served by a utility or within a region.

bus-bar cost

The total cost of generating electricity, excluding substation and transmission losses.

rate base

The total value of a utility's plants, transmission lines, buildings, and other equipment.

coal

A readily combustible black or brownish-black rock composed primarily of carbon and hydrogen along with small quantities of other elements, notably sulfur. Coal remains the most commonly used fuel for generating electricity in the nation and around the world, and the largest source of carbon dioxide emissions blamed for contributing to climate change. In the United States, coal-fired power plants are responsible for approximately 39 percent of the nation's man-made carbon dioxide output— more than any other sector—and about 33 percent of all greenhouse gas emissions from human activity. Coal accounts for about 70 percent of the power produced by generation and transmission cooperatives and 54 percent of all electric cooperative power requirements nationwide; overall, it makes up 33 percent of U.S. electric generation. Coal was the largest primary source of energy in the U.S. from 1885-1949, before being surpassed by oil.

hydroelectric power

A renewable baseload power source of electric generation created by flowing water. Since large hydroelectric power plants can ramp up from nothing to maximum output in just a few minutes without the need for an external power source, they have long been relied upon to restart electric grids after a blackout. Short form is hydropower.

Key Ratio Trend Analysis (KRTA)

A report published annually since 1975 by the National Rural Utilities Cooperative Finance Corporation that tracks the median value of 145 financial and operational ratios over the previous five years for more than 800 participating electric distribution cooperatives.

turbine

A rotary engine that extracts energy from moving water, gas, steam, or air. The simplest turbines boast one moving part, a rotor assembly—essentially, a shaft with blades attached.

Brownout

A small, temporary voltage reduction implemented by a utility to conserve electricity during periods of high power consumption.

uranium

A soft, radioactive metal and the heaviest natural element; used as a fuel for nuclear energy. One pound of enriched uranium contains nearly 3 million times the energy contained in a pound of coal.

meter data management system (MDMS)

A software module that lies between an electric cooperative's automated meter reading or advanced metering infrastructure system and billing applications. MDMS collects, stores, analyzes, validates, and frames collected meter data for more accurate billing, better load forecasting, and active down-line equipment monitoring, enabling cooperatives to adopt time-of-use metering and allowing consumers, using personal energy management tools, to view hourly and daily electric use. Generation and transmission cooperatives see MDMS as a way to immediately measure the effectiveness of demand-response programs, including direct control of appliances and equipment.

industrial rate

A special pricing structure created for industrial consumers.

right-of-way

A strip of land owned by another party on which a utility places poles, wires, substations, and other facilities. Sometimes acquired through eminent domain. Use hyphens for both the noun and adjective form. Plural is rights-of-way.

circuit breaker

A switch that opens an electric circuit when a short occurs or the system otherwise experiences abnormal stress.

Interconnection

A tie permitting the flow of electricity between the facilities of two electric systems.

cutout

A transformer fuse so named because when the fuse is removed the circuit opens.

arc flash

A type of electrical explosion (essentially a short circuit through the air) that usually causes substantial damage, fire, or injury. In an arc-flash incident, an enormous amount of concentrated energy explodes outward from electrical equipment. This creates pressure waves that can damage hearing, a high-intensity flash that can destroy eyesight, and a superheated ball of gas that can blast molten metal, tools, and other objects through the air and severely burn an unprotected worker's body. The temperature of an arc flash sometimes reaches 35,000 degrees Fahrenheit—about four times hotter than the surface of the sun. The 2007 National Electrical Safety Code required all electric distribution utilities in states that have adopted the code to perform assessments by January 1, 2009, to determine the potential exposure of lineworkers and other field personnel to arc-flash hazards and identify protective clothing needs. Electric cooperatives that are federal Rural Utilities Service borrowers must comply with all sections of the National Electrical Safety Code.

kilowatt-hour (kWh)

A unit of energy or work equal to 1,000 Wh. The basic measure of electric energy use. A 100-W lightbulb burning for 10 hours uses 1 kWh. Abbreviation acceptable on first reference when used with a numeral.

demand-side management

A utility program aimed at reducing total consumer use of electricity through conservation or efficiency measures, or by shaving peak demand through demand-response activities. Most often referred to by electric cooperatives as load management.

seasonal energy efficiency ratio (SEER)

A way to measure the efficiency of air-conditioning units or systems. A higher SEER means a more energy-efficient unit or system.

crossarm

A wood, laminated wood, or fiberglass support attached to a pole that holds wire and insulators. One word.

utility plant

All fixed assets of a utility, including poles, wires, components, substations, transmission, and headquarters facilities in service, purchased, sold, or leased to others.

easement

An agreement allowing a utility to use private property for a specific purpose, such as building a distribution or transmission line.

all-requirements contract

An agreement where an electric distribution cooperative agrees to purchase all of its wholesale power needs from a single supplier, generally a generation and transmission cooperative.

service charge

An amount on a consumer's electric bill designed to recover some of the fixed costs of providing electric service; generally a flat rate charged whether or not any electricity is consumed.

energy audit

An analysis of residential, commercial, or industrial buildings that shows consumers how to save money on their electric bills by making energy efficiency-related improvements.

cost-of-service study

An analysis that determines how much it costs an electric utility to serve various classes of consumers; provides the basis for evaluating different discount and incentive programs and results in the development of cost-based rates.

single-phase power

An electric circuit that consists of one alternating current.

three-phase power

An electric circuit that consists of three separate currents delivered at one-third cycle intervals by means of three wires; typically used to power large industrial motors that operate at 230 V or higher.

tap

An electric circuit with limited capacity extending from a distribution line; usually supplies a small number of consumers.

distribution cooperative

An electric cooperative that operates a distribution system, purchases wholesale power, and delivers it to consumers.

intermediate load plant

An electric generating unit, usually a combustion turbine burning natural gas or diesel fuel, or using hydropower, that handles sharp increases in electricity demand by filling the power supply gap between baseload generation and peaking plants. Most intermediate load plants run during the day and early evening and shut down or greatly curtail output during nighttime and early morning hours. Also known as a load-following plant.

peaking plant

An electric generating unit, usually a combustion turbine burning natural gas or diesel fuel, that operates at high cost for brief periods during times of high electricity consumption. Also called a peak load plant.

bus

An electrical conductor that serves as a common connection for two or more electrical circuits.

substation

An electrical facility containing equipment for controlling the flow of electricity from supplier to user.

voltage

An electromotive force that acts like water pressure and causes electrons to flow. Voltage measures the potential for current flow and may exist between objects without an actual flow of current.

energy efficiency

Using less energy to perform the same or additional functions. Sometimes called the other power supply, the fifth fuel (after coal, nuclear, natural gas, and renewables), or even the first fuel (before the others). Energy efficiency—a real resource that can be measured and verified—helps electric cooperatives temporarily head off the need to build new generation while curbing greenhouse gas emissions. In general, the biggest payoff for electric cooperatives comes from consumers implementing recommendations of energy audits and switching to more energy-efficient geothermal and air-source heat pumps, lighting, and appliances combined with improved power plant operating efficiencies and expansion of demand-response/load management programs. Energy efficiency differs from conservation in that it involves doing more with less electricity. NOTE: No hyphen needed when using energy efficiency in a modifying context (such as an energy efficiency guide), as "efficiency" can serve as a noun.

high voltage

Voltage in a power line greater than the 120 V to 240 V used in most residences.

purchase power

Wholesale power bought through a long-term contract or off the spot market. Purchase power from investor-owned utilities, non-utility generators, power marketers, federal power marketing administrations, state power agencies, and others makes up roughly 50 percent of the electricity supplied by electric cooperatives nationwide; the rest is provided from power plants owned almost exclusively by generation and transmission cooperatives. No "d" needed on purchase in this usage, although power can indeed be "purchased."

Clean Power Plan

regulation issued by the U.S. Environmental Protection Agency (EPA) in final form on August 3, 2015, under Section 111(d) of the federal Clean Air Act, it calls for a 27 percent cut nationally in greenhouse gas emissions (from 2005 levels) from existing fossil fuel-fired power plants by 2022, and 32 percent by 2030. States, with differing reduction targets, are allowed to come up with their own methods to reduce emissions based on a menu of options that includes adding wind and solar power, adopting new energy efficiency programs, and creating or joining state cap-and-trade programs. Electric cooperatives oppose the rule, arguing EPA broadly overstepped its authority under the Clean Air Act and pointing to how implementation will disproportionately affect rural communities, raise electric bills, and jeopardize reliability.

load management

An energy efficiency initiative whereby an electric utility reduces power consumption—and keeps the lid on wholesale generation costs—by shifting when and how electricity gets used. Load management programs include direct control of specialized appliances and equipment (notably large-capacity, grid-enabled electric resistance water heaters, electric thermal storage furnaces and room heating cabinets, air conditioning, and dual fuel systems) in the homes of volunteer consumers, interruptible contracts with large commercial and industrial accounts (most of whom have installed backup generation), dispatch of consumer-owned (distributed) generation into the wholesale power market, personal energy management, time-of-use rates, and other incentives. Typically, load management kicks in for brief periods (just a few hours) during times of peak demand—the electric utility industry's equivalent of rush-hour traffic, when power costs skyrocket. Load management essentially works like a "power plant in reverse," helping to boost electric system efficiency, cut expensive demand charges utilities must pay for purchase power, and reduce the need for new power plants. Also called demand response, demand-side management, or peak load shifting/shaping/shaving. More than 250 cooperatives in 35 states use large-capacity, grid-enabled electric resistance water heaters to reduce electric demand by an estimated 500 MW annually, saving consumers hundreds of millions of dollars.

combustion turbine

An engine that typically burns natural gas, occasionally diesel fuel, or a combination of both to produce electricity. Combustion turbines, because of their generally rapid start- up and ramping times, are often used to meet short-term demand peaks.

independent power producer (IPP)

An entity other than a utility that generates wholesale power.

small power producer

An entity that generates electricity primarily from a renewable energy system with capacity under 80 MW. As defined by the federal Public Utility Regulatory Policies Act, small power producers can use some fossil fuels as part of their generation but renewables must provide at least 75 percent of the total energy input. Small power producers include homeowners and farmers who self-generate electricity for their own needs from a backyard or rooftop renewable energy facility and sell the surplus back to their local utility.

net metering

An incentive where owners of small renewable energy systems receive retail credit for at least a portion of the electricity they generate. In its pure form, a consumer's electric meter will spin backwards whenever he/she uses less power than the renewable energy system produces, effectively banking excess electricity production for future credit.

not-for-profit

An incorporated, self-help organization established with the sole purpose of providing a service at the lowest possible cost and where ownership lies with stakeholders (users) and not outside investors. Not-for-profit entities, such as cooperatives and credit unions, maintain a surplus of income over expenditures but use that excess revenue to improve service and return it to stakeholders.

hertz

An international measure of frequency or vibration equal to 1 cycle per second. The alternating current frequency used in North America is 60 Hz. In Europe and some other parts of the world, it is 50 Hz. Singular and plural forms are the same.

independent system operator (ISO)

An organization responsible for providing non-discriminatory transmission services for one or more transmission owners while maintaining reliability. ISOs typically perform similar functions as regional transmission organizations (RTOs) but have somewhat less authority and typically cover smaller geographic areas. Both ISOs and RTOs are subject to Federal Energy Regulatory Commission jurisdiction.

clean-coal technology

Any industrial system or application that reduces emissions from coal-fired power plants.

key account

Any load deemed vital to the financial well-being of an electric cooperative, usually a large business or industry.

stranded costs

Assets owned by utilities that become uneconomical in a competitive marketplace. Primary examples of stranded costs include power plants or transmission lines.

smart grid

The use of technologies and tools that help electric utilities better meet consumers' needs reliably and affordably by more effectively monitoring demand and system conditions on a near real- time basis. The smart grid combines digital meters and devices, software applications, and two-way communications that allow utilities to track the flow of electricity with great precision; pinpoint outages; identify voltages out of allowed ranges; and transmit messages to transformers, capacitors, circuit breakers, and other distribution equipment to initiate diagnostic or corrective (self-healing) actions that can isolate, reroute power around, or even remotely repair the cause of a power interruption. It can also let utilities record consumer electric use in various time intervals, communicate that consumption data among authorized staff, and provide consumers with hourly or more frequent power pricing information so they can respond to changing electricity needs. The U.S. Department of Energy lists seven functions of a smart grid: enabling informed participation by consumers; accommodating all generation and energy storage options; creating new products, services, and markets; delivering power quality for the range of needs in the twenty-first century; optimizing asset utilization and operating efficiency; addressing disturbances—automated outage prevention, containment, and restoration; and operating resiliently against physical and cyber attacks and natural disasters. Quick bite: Across the nation, utilities are modernizing electric distribution systems by deploying advanced communications and automation technologies―including two-way digital meters—to improve reliability, increase efficiency, and help control electricity costs for consumers.

blackout

Total power failure over a large area, often caused by the malfunction of generating equipment or transmission facilities.