Glossary
Energy Glossary
16 essential energy and electricity terms explained in plain language.
Pricing & Rates
Electricity Rate
The price charged per kilowatt-hour of electricity, varying by customer class (residential, commercial, industrial).
Tiered Pricing
A rate structure where the price per kWh increases as consumption rises above set thresholds.
Time-of-Use (TOU) Rates
Pricing that varies by time of day, with higher rates during peak demand hours and lower rates off-peak.
Demand Charge
A fee based on the maximum rate of electricity consumption (peak demand in kW) during a billing period.
Power Generation
Base Load
The minimum level of electricity demand over a 24-hour period, typically supplied by always-on power plants.
Capacity Factor
The ratio of actual electricity output to maximum possible output over a period, measuring plant efficiency.
Generation Mix
The combination of energy sources (coal, gas, nuclear, renewables) used to produce a state's electricity.
Renewable Energy
Renewable Energy
Electricity generated from naturally replenishing sources: wind, solar, hydro, geothermal, and biomass.
Solar Energy
Electricity generated from sunlight using photovoltaic panels or concentrated solar power systems.
Wind Energy
Electricity generated by wind turbines that convert kinetic energy from wind into electrical power.
Grid & Distribution
Regulation & Policy
Net Metering
A billing arrangement where solar panel owners receive credit for excess electricity they send back to the grid.
Renewable Portfolio Standard (RPS)
A state policy requiring utilities to source a specified percentage of electricity from renewable sources.
Energy Deregulation
A policy allowing consumers to choose their electricity supplier, separating generation from distribution.