ABC’s OF ELECTRIC DEREGULATION

Aggregation: Creating large groups of customers to negotiate better rates.

Bundling: To consolidate generation, transmission, distribution and other services under one entity.

Load: the amount of electric power required at a given time by energy consumers.

Power Broker: A company that matches potential buyers and sellers together, negotiating the sale of energy at a price acceptable to both parties.

Stranded Cost: Investments that utility companies made in the regulated environment primarily facilities and equipment that may not be needed because of competition. Utilities need to be able to recoup such costs from customers that leave them for other suppliers.

Transmission Grid: the high-voltage wires that connect generation facilities with distribution facilities

Wheeling: The transmission of power to customers. Wholesale wheeling deals in transporting bulk power over the grid to distribution companies. Retail wheeling deals in transporting the power to end-users.