Glossary of Commercial Energy Terms
A
Aggregate Energy Purchasing
The process where multiple entities pool their energy needs to negotiate lower rates with suppliers.
Ampere (Amp)
A unit of measurement for the electric current, reflecting the flow of electrons through a conductor.
Ancillary Services
Support services required to maintain grid stability and reliability, such as voltage support and frequency regulation.
B
Base Load
The minimum level of energy demand required over a specific period, typically met by consistent energy sources like natural gas or coal plants.
British Thermal Unit (BTU)
A unit of measurement for energy; it is the amount of energy required to heat one pound of water by one degree Fahrenheit.
C
Capacity Charge
A fee charged by utilities for ensuring sufficient infrastructure and power availability to meet peak demand.
Commercial Energy
Energy purchased and consumed by businesses, industries, or government facilities to power operations. Learn more about commercial energy.
Commodity Charge
The cost of the actual energy consumed, separate from delivery or other charges.
D
Demand Charge
A fee based on the highest level of power used during a specific billing period, typically reflecting peak usage.
Deregulation
The process of opening energy markets to competition, allowing consumers to choose their energy suppliers rather than relying on a monopoly utility provider.
E
Energy Efficiency
The ratio of useful energy output to the total energy input, often improved by technology or optimized systems.
Energy Supply
The source and delivery of energy to consumers, including natural gas, electricity, or other fuels. Explore competitive commercial energy supply.
Energy Service Company (ESCO)
A business that provides energy solutions, including energy audits and efficiency improvements.
F
Fixed Rate
An energy pricing structure where the cost per kilowatt-hour or therm remains constant for the contract duration.
Fuel Adjustment Charge
A variable charge applied by utilities to account for fluctuations in fuel prices.
G
Grid
The interconnected network of transmission lines, substations, and power plants that deliver electricity to consumers.
Generation
The process of producing electricity from various energy sources like natural gas, coal, or hydroelectric systems.
H
Hertz (Hz)
A unit of frequency used to measure the cycles per second in alternating current (AC).
Hybrid Rate Plan
A billing structure combining fixed and variable rates based on market conditions or usage patterns.
K
Kilowatt (kW)
A unit of power equal to 1,000 watts, often used to measure the capacity of equipment or systems.
Kilowatt-hour (kWh)
A unit of energy consumption, representing the use of 1,000 watts for one hour.
L
Load
The total amount of electric power required by consumers at a given time.
Load Factor
A ratio reflecting the efficiency of energy use, calculated as average load divided by peak load.
M
Megawatt (MW)
A unit of power equal to 1,000 kilowatts, often used to describe the capacity of power plants.
Metering
The process of measuring energy consumption through a physical or smart meter.
P
Peak Demand
The highest level of energy usage during a specified time frame, often leading to higher costs.
Power Factor
A measure of how effectively electrical power is converted into useful work, with values closer to 1 being optimal.
R
Real-Time Pricing
An energy pricing model where rates fluctuate based on real-time supply and demand conditions.
Renewable Portfolio Standard (RPS)
A policy mandating that a certain percentage of energy must come from renewable sources.
S
Spot Market
An energy market where electricity is bought and sold for immediate delivery at current prices.
Supply Charge
The cost associated with providing energy to a business, separate from transmission or other charges.
T
Tariff
A schedule of rates, fees, and policies governing the provision of energy services.
Transmission
The process of transporting high-voltage electricity over long distances from generators to local distribution systems.
V
Variable Rate
An energy pricing structure where the cost per kilowatt-hour or therm changes based on market conditions.
Voltage
The measure of electrical potential difference, driving the flow of current through a conductor.
W
Watt (W)
A unit of power measuring the rate of energy transfer.
Wholesale Energy Market
A market where large quantities of energy are bought and sold, typically by utilities or large-scale consumers.
For more details on commercial energy terms or to explore cost-saving options for your business, contact Commercial Energy Group:
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- Email: Support@GroupEnergy.org
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