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Popular Electric Company Terms Defined

Although they may seem simple on the surface, the details of electric power and what it means for your energy bill can be complicated. Dealing with the utility company or its contractors can be all the more difficult for the confusing jumble of terms used. Below, the most important terms are defined, so that energy customers may have a better idea of just what their electric bill is really saying.

  • Electric demand - The maximum amount of electric power used at a specific time, often evaluated in 15-minute increments. Demand charges are more likely to be issued to commercial customers than they are to residential customers.
  • Actual Versus Estimated Reading - An actual reading is the recorded energy usage for a meter in a given month. Estimated reading refers to an estimated monthly charge based on past usage and outdoor temperatures. Energy is measured in units of kilowatt hours, abbreviated as kWh. The meter reading will determine a consumer's bill.
  • Generation Charges - The cost of creating the electricity, as paid by the utility company and passed onto the consumer.
  • Transmission Charges - Charges to transfer electricity from power stations to the electricity delivery system. Charges are mandated by the Federal Energy Regulatory Commission.
  • Distribution Charges - Cover the cost of delivering electricity to a customer's home or business via wires or cables.
  • Alternative Energy Portfolio Standard - Covers the cost of energy purchased from alternative energy sources. In Pennsylvania, for example, this is mandated by the AEPS Act.
  • Solar - An alternative source of energy, created by capturing the sun's rays, most commonly through solar panels, and converting the heat into energy.
  • State Tax Adjustment - A credit or charge due to changes in the state tax.
  • Contractor - A third party energy company hired by the electric company to handle installation, equipment repairs and any other services agreed to in their contract with the consumer.
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    Ocala Utility Services
    201 Se 3rd St, Ocala, FL 34471
    (1) Review Write a review
    (352) 629-8411
     
    User Review: "Signed up 6/09 with a $350 deposit to get back in 13 months - called 8/10 was told "we don't refund it anymore"...."
    KW Morrow & Sons Electric Inc.
    Tampa, FL 33613
    We are your local source of quality electric services. We handle all your residential, commercial, and industrial electrical remodeling needs. Fast and affordable electric service!
    (813) 996-0776
    I & C Electrical, Generator & Lightning Protection
    9115 Lazy Ln, Tampa, FL 33614
    Electrical technicians are available to provide quality generator, lightning protection, and electrical services for residential, commercial, and industrial clients.
    (877) 212-2328
    Withlacoochee River Electric Co-Op
    Dunnellon, FL 34431
    (352) 489-6818
    Sumter Electric Cooperative Inc
    610 S Us Highway 41, Inverness, FL 34450
    (352) 726-3944
    Sumter Electric Cooperative
    4872 Sw 60th Ave, Ocala, FL 34474
    (352) 489-4390
    S & L Utilities Inc
    719 Se 46th Ct, Ocala, FL 34471
    (352) 671-1028
    Honeywell
    2011 Culpepper Way, The Villages, FL 32162
    (352) 750-0135
    Sumter Electric Cooperative Inc
    293 S Us 301, Sumterville, FL 33585
    (352) 793-3801
    Sumter Electric Cooperative Inc
    Sumterville, FL 33585
    (352) 521-5788
    Shady Hills Power Co LLC
    14240 Merchant Energy Way, Spring Hill, FL 34610
    (727) 857-1787
    Withlacoochee River Electric Co-Op Inc
    14651 21st St, Dade City, FL 33523
    (352) 567-5133
    Seminole Electric Cooperative Inc
    4155 Ne 35th St, Ocala, FL 34479
    (352) 236-4200
    Pasco Cogen LTD
    14850 Old State Road 23, Dade City, FL 33523
    (352) 523-0062
    A&G Electrical Technologies
    11638 Corporate Lake Blvd, San Antonio, FL 33576
    (352) 588-0400


    Electric companies in the United States date back to the late nineteenth century. Since then, utility companies have transmitted power over long distances from centralized generating plants. A power company is responsible for high voltage lines and the transformers that adjust the voltage to levels suitable for home or industrial consumption. The second kind of electric company is a contractor that installs equipment and wiring. They may work on residential or commercial products. Some specialize in outdoor installations, such as for parks. Most electrical appliances, however, operate indoors. They include kitchen appliances and heaters. Contractors may also install and repair small local power generating machines. These commonly include gas powered generators and solar panels. Utility companies may also provide and bill for water and natural gas, or they may focus entirely on electricity. Energy use is generally billed according to set rates. In many cases, energy is cheaper at off peak hours. Charges are determined by a meter connected to the building's electricity supply. The utility is generally responsible for the meter and cables and wires that connect the building to the grid. They are not responsible for wiring inside the building itself. Environmental and supply concerns have led to recent significant changes in electricity generation. Renewable energy is making headway against the old fossil fuel standbys. Solar and wind power show a lot of potential. A growing trend is for residences and small businesses to generate their own power, often through solar. In some cases, these systems are connected to the grid, allowing the homeowner to become an electricity supplier in his own right. This is causing changes in the way power is generated and sold.
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