Glossary of Terms

Unbundling

The separating of the total process of electric power service from generation to metering into its component parts for the purpose of separate pricing or service offerings.

Uniform System of Accounts

Prescribed financial rules and regulations established by the Federal Energy Regulatory Commission for utilities subject to its jurisdiction under the authority granted by the Federal Power Act.

Useful Thermal Output

The thermal energy made available for use in any industrial or commercial process, or used in any heating or cooling application, i.e., total thermal energy made available for processes and applications other than electrical generation.

Utility Distribution Companies

The entities that will continue to provide regulated services for the distribution of electricity to customers and serve customers who do not choose direct access. Regardless of where a consumer chooses to purchase power, the customer's current utility, also known as the utility distribution company, will deliver the power to the consumer's home, business, or farm.

Vertical Integration

An arrangement whereby the same company owns all the different aspects of making, selling, and delivering a product or service. In the electric industry, it refers to the historically common arrangement whereby a utility would own its own generating plants, transmission system, and distribution lines to provide all aspects of electric service.

Voltage Reduction

Any intentional reduction of system voltage by 3 percent or greater for reasons of maintaining the continuity of service of the bulk electric power supply system.

Volumetric Wires Charge

A type of charge for using the transmission and/or distribution system that is based on the volume of electricity that is transmitted.

Watt

The electrical unit of power. The rate of energy transfer equivalent to 1 ampere flowing under a pressure of 1 volt at unity power factor.

Watthour (Wh)

An electrical energy unit of measure equal to 1 watt of power supplied to, or taken from, an electric circuit steadily for 1 hour.

Wheeling Service

The movement of electricity from one system to another over transmission facilities of intervening systems. Wheeling service contracts can be established between two or more systems.

Wholesale Competition

A system whereby a distributor of power would have the option to buy its power from a variety of power producers, and the power producers would be able to compete to sell their power to a variety of distribution companies.

Wholesale Sales

Energy supplied to other electric utilities, cooperatives, municipals, and Federal and State electric agencies for resale to ultimate consumers.

Wholesale Power Market

The purchase and sale of electricity from generators to resellers (who sell to retail customers), along with the ancillary services needed to maintain reliability and power quality at the transmission level.

Wholesale Transmission Services

The transmission of electric energy sold, or to be sold, at wholesale in interstate commerce (from EPACT).

Wires Charge

A broad term which refers to charges levied on power suppliers or their customers for the use of the transmission or distribution wires.

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