Electricity 101
Your go-to resource for understanding how electricity works and how it powers your everyday life. This page is designed to help you learn more about the bulk electric system, including answers to common questions, key utility terms and concepts, and resources to break down complex topics in a simple, engaging way. Whether you're curious about how power gets to your home, what causes outages, or how to stay safe around electricity, you'll find helpful, easy-to-understand information right here.
Industry Terms
In this glossary, you will find definitions for words and phrases specific to rural electric cooperatives, the electric power industry, the federal government, and many other associated organizations.
Accelerated Cost Recovery System (ACRS)
A depreciation method used for most property placed into service from 1981 to 1986. This method allowed assets to be depreciated at a faster rate than had been allowed previously. The modified accelerated cost recovery system (MACRS) replaced ACRS for assets placed into service after 1986.
Access Charge
In 1996, the Federal Energy Regulatory Commission (FERC) published rules to establish open access to electric transmission lines as a major step toward electricity deregulation. A provision of those rules established open-access tariffs that would permit companies to recover part of the “stranded” costs represented by investments in their transmission lines and supporting equipment. At the same time, the rules were designed to assure that companies could not exercise an unfair competitive advantage by charging competing generators or resellers exorbitant rates for access to their lines.
Acid Rain
Also called acid precipitation or acid deposition, acid rain is precipitation containing harmful amounts of nitric and sulfuric acids formed primarily by nitrogen oxides and sulfur oxides released into the atmosphere when fossil fuels are burned. It can be wet precipitation (rain, snow, or fog) or dry precipitation (absorbed gaseous and particulate matter, aerosol particles or dust).
Action Committee for Rural Electrification (ACRE)
A political action committee that gives financial support to national candidates friendly to rural electric cooperatives.
Administrative and General Expenses (A&G)
Expenses of an electric utility relating to the overall directions of its corporate offices and administrative affairs, as contrasted with expenses incurred for specialized functions. Examples include office salaries, office supplies, advertising, and other general expenses.
Aggregator
An entity which aggregates multiple customers for the purpose of negotiating or contracting electricity rates.
All-Requirements Power Contract (ARC)
An agreement by which a distribution system agrees to purchase all its wholesale electric power from a single power supplier; primarily used by rural and municipal electric systems.
Alternating Current (AC)
An electric current which changes direction and strength in a rhythmically repeating cycle.
Alternative Fuels
Sources of heat energy other than coal, nuclear power, natural gas or oil used to generate electricity; usually renewable materials such as wood chips, solar power or garbage.
American Public Power Association (APPA)
A national trade association for which the membership is primarily comprised of municipal utilities.
Ampere
The unit of measurement of electrical current produced in a circuit by 1 volt acting through a resistance of 1 ohm.
Ancillary Services
Electricity purchased by ERCOT for the purpose of guaranteeing transmission of the correct amount of power is available to cover all demand during all periods.
Annual Meeting
Once-a-year gathering of members held according to a cooperative’s bylaws for the purpose of electing directors and conducting other business.
Anthracite
A hard, black lustrous coal, often referred to as hard coal, containing a high percentage of fixed carbon and a low percentage of volatile matter.
Articles of Incorporation
The documents issued by the state authorizing and empowering the corporation to be formed and to do business within the state. The documents specifying those activities which the corporation may engage.
Ash
Impurities consisting of silica, iron, alumina, and other noncombustible matter that are contained in coal. Ash increases the weight of coal, adds to the cost of handling, and can affect its burning characteristics. Ash content is measured as a percent by weight of coal on an “as received” or a “dry” basis.
Automatic Generation Control (AGC)
The automatic regulation of the power output of electric generators within a prescribed area in response to change in system frequency, or tie-line loading, so as to maintain the scheduled system frequency or the established interchange with other areas within predetermined levels.
Available Transfer Capability (ATC)
A measure of physical transmission network available for further commercial activity.
Available but not Needed Capability
Net capability of main generating units that are operable but not considered necessary to carry load, and cannot be connected to load within 30 minutes.
Average Revenue per Kilowatthour
The average revenue per kilowatthour of electricity sold by sector (residential, commercial, industrial, or other) and geographic area (State, Census division, and national), calculated by dividing the total monthly revenue by the corresponding total monthly sales for each sector and geographic area.
Avoided Cost
Money a utility saves by purchasing power from another company instead of producing the power itself. Avoided costs include such things as reduced capacity requirements or fuel and lower line costs.
Balancing Energy
Energy purchased to maintain a stable voltage level and to make up differences between scheduled and actual demand for energy.
Banks for Cooperatives
Authorized by Congress to lend to rural utilities in 1973, BCs lend concurrently with RUS, providing financing in conjunction with the guaranteed loan program and by making direct loans. BCs include CoBank.
Barrel
A volumetric unit of measure for crude oil and petroleum products equivalent to 42 U.S. gallons.
Base Bill
A charge calculated through multiplication of the rate from the appropriate electric rate schedule by the level of consumption.
Base Load
The minimum amount of electric power delivered or required from a generating system over a specified period of time; usually measured in megawatts.
Base Rate
The portion of the total regulated retail electric tariff which covers all costs of delivering energy other than fuel for generation.
Baseload Capacity
The generating equipment normally operated to serve loads on an around-the-clock basis.
Baseload Plant
A plant, usually housing high-efficiency steam-electric units, which is normally operated to take all or part of the minimum load of a system, producing electricity at an essentially constant rate and running continuously to maximize system mechanical and thermal efficiency and minimize operating costs.
Bbl
The abbreviation for barrel.
Bcf
The abbreviation for 1 billion cubic feet.
Bilateral Market
A market where buyers and sellers negotiate contracts with each other for the delivery of energy on terms chosen by those buyers and sellers.
Billing Demand
A charge a customer pays to reserve capacity or facilities used, regardless of the customer’s actual consumption.
Bituminous Coal
The most common coal. It is dense and black (often with well-defined bands of bright and dull material). Its moisture content usually is less than 20 percent. It is used for generating electricity, making coke, and space heating.
Boiler
A device for generating steam for power, processing, or heating purposes or for producing hot water for heating purposes or hot water supply. Heat from an external combustion source is transmitted to a fluid contained within the tubes in the boiler shell.
Broadband over Power Lines (BPL)
High-speed Web access over electric power lines.
Btu (British Thermal Unit)
A standard unit for measuring the quantity of heat energy equal to the quantity of heat required to raise the temperature of 1 pound of water by 1 degree Fahrenheit.
Bundling
Refers to the vertical organization of a utility into generation, transmission and distribution segments. Bundling of an electric bill means the consumer is billed just one amount for all components involved in providing electricity.
Bylaws
A set of rules adopted by an organization primarily for the government of its members and regulation of its affairs.
CFC
See National Rural Utilities Cooperative Finance Corporation.
Capability
The maximum load that a generating unit, generating station, or other electrical apparatus can carry under specified conditions for a given period of time without exceeding approved limits of temperature and stress.
Capacity
The potential for generating power, measured in kilowatts, of a power plant. Also the electric load, measured in watts or kilowatts, of a piece of electrical equipment or system.
Capacity (Purchased)
The amount of energy and capacity available for purchase from outside the system.
Capacity Charge
An element in a two-part pricing method used in capacity transactions. The capacity charge, sometimes called Demand Charge, is assessed on the amount of capacity being purchased.
Capacity Margin
Excess electric generating capacity, beyond planned peak system demand, reserved for emergencies and generally specified by NERC standards.
Capital Credits
Margins credited to members of a cooperative based on their purchases from the cooperative. Used by the cooperative as working capital for a period of time, then paid back to the membership. Also called patronage capital or equity capital.
Census Divisions
The nine geographic divisions of the United States established by the Bureau of the Census for statistical analysis. Boundaries coincide with State boundaries; Pacific Division subdivided into Pacific Contiguous and Noncontiguous.
Certificate of Convenience and Necessity
A certificate issued by a public utility commission which approves a new service area for a utility, construction of new transmission lines, or other regulated expansion or construction.
Certificated Utility
A utility which has received a certificate of convenience and necessity to operate in a given region.
Certified Cooperative Communicator (CCC)
A voluntary education and certification program for mass communication and marketing communication professionals in the electric co-op industry, sponsored by the Council of Rural Electric Communicators.
Certified Key Account Executive (CKAE)
A program enabling participants to develop and fine-tune the necessary skills for managing critical, large-load customer accounts.
Circuit
A conductor or system of conductors through which electric current flows.
Clean Air Act
A national law passed in 1963 and amended several times, giving the U.S. government broad powers to limit air pollution.
Clean-Air Technology
Involves emission-control devices that can remove pollutants at coal-fired power plants more efficiently and reliably than scrubbers.
Clean-Coal Technology
A broad term covering any new technology for reducing emissions from coal-fired power plants.
Co-Generator
A generating facility that produces electricity and another form of useful thermal energy (such as heat or steam) used for industrial, commercial, heating, or cooling purposes.
Coal
A black or brownish-black solid combustible substance formed by the partial decomposition of vegetable matter without access to air. Rank (anthracite, bituminous, subbituminous, lignite) is based on fixed carbon, volatile matter, and heating value.
Coincidental Demand
The sum of two or more demands that occur in the same time interval.
Coincidental Peak Load
The sum of two or more peak loads that occur in the same time interval.
Coke (Petroleum)
A residue high in carbon content and low in hydrogen that is the final product of thermal decomposition in the condensation process in cracking.
Combined Cycle
An electric generating technology in which electricity is produced from waste heat exiting combustion turbines, routed to boilers or heat recovery steam generators for steam turbines, increasing efficiency.
Combined Cycle Unit
An electric generating unit consisting of combustion turbines and boilers with part of the required energy input to the boilers provided by turbine exhaust gas.
Combined Pumped-Storage Plant
A pumped-storage hydroelectric power plant that uses both pumped water and natural streamflow to produce electricity.
Commercial
The commercial sector comprises nonmanufacturing business establishments, including hotels, motels, restaurants, wholesale businesses, retail stores, and social and educational institutions.
Commercial Operation
Begins when control of the loading of the generator is turned over to the system dispatcher.
Conflict of Interest
The occurrence of action by a director which provides a benefit to both the corporation and the individual director.
Congestion Revenue Rights
A financial instrument allowing the holder to obtain a fixed price for transmission regardless of congestion.
Conservation
Reducing energy consumed by a customer for a specific end-use through behavior changes or technology, without changing timing or switching fuels.
Contingency Reserve
Operating reserve that allows a generating facility to reduce control area error to zero within 10 minutes after the loss of generating capacity.
Contract Price
Price of fuels marketed on a contract basis covering 1+ years, reflecting market conditions at negotiation time and remaining constant or adjusted via escalation clauses.
Contract Receipts
Purchases based on a negotiated agreement covering 1+ years.
Control Area
Generally, a utility’s service area.
Cooperative (co-op)
A member-owned, democratically controlled business operating on a non-profit basis, returning margins to members based on patronage.
Cooperative Electric Utility
An electric utility owned and operated for the benefit of its service users. It generates, transmits, and/or distributes electric energy to a specified area, generally exempt from federal income tax.
Cooperative Principles
Seven principles: voluntary membership; democratic member control; member economic participation; autonomy and independence; education and information; cooperation among cooperatives; concern for community.
Cooperative Research Network (CRN)
NRECA’s research arm focusing on research important to electric cooperatives’ competitive future.
Cooperative.com
A private Internet site for electric co-ops and affiliates to share information, supported by NRECA, NRTC, CFC, and Federated Insurance.
Cost
The amount paid to acquire resources such as plant, equipment, fuel, or labor.
Cost of Service
The cost of providing electric service, excluding the cost of electricity.
Cost-Based Rate
An electric rate structure where each classification pays its fair share of costs so no group subsidizes another.
Cost-of-Service Rates
Rates based on covering the cost of building and operating facilities necessary to produce electricity.
Cove Heater
A heating system installed near the ceiling, combining radiant and convective heat.
Cross-Subsidization
Charging higher rates to one customer class to lower rates for another, or shifting assets/services from regulated to unregulated affiliates.
Current (Electric)
A flow of electrons in a conductor, measured in amperes.
Customer Charge
A flat charge recovering fixed costs for serving individual customers, regardless of energy used.
Customer Choice
Also retail wheeling; customers can choose their power supplier.
Debt Service Coverage (DSC)
A financial measure of a utility’s ability to pay annual interest and principal on long-term debt.
Debt-to-Equity Ratio
The ratio of what a system owes to what it owns.
Demand
The amount of electricity drawn from a system at a given time, measured in kilowatts.
Demand Charge
A charge based on the maximum amount of power a customer uses, measured in kilowatts.
Demand-Side Management
Utility programs designed to encourage consumers to modify electricity usage patterns in response to utility-administered programs.
Department of Energy (DOE)
A government agency with the mission to advance national energy security, promote innovation, and ensure environmental cleanup of the nuclear weapons complex.
Direct Access
A retail customer’s ability to purchase electricity directly from the wholesale market.
Direct Current (DC)
An electric current that does not change direction or strength over time.
Dispersed Generation
Small, decentralized generators such as diesel turbines, supplementing or replacing large plants, located near the point of use.
Distillate Fuel Oil
A petroleum fraction used for heating, diesel engines, and electric power generation, including Fuel Oils No. 1–4 and Diesel Fuels No. 1–4.
Distributed Generation
Electricity production at or near the point of use, such as small office buildings or homes.
Distribution Company (DISCO)
A utility providing power distribution services, also called a wires company.
Distribution Cooperative
An electric cooperative that purchases wholesale power and delivers it to members.
Distribution System
The portion of an electric system dedicated to delivering energy to end users.
Diversification
Any business activity outside the core mission.
Duty of Care
Directors must perform duties in good faith, believing actions serve the corporation, with ordinary prudence.
Duty of Loyalty
Directors must prioritize the corporation’s interests over personal interests.
Duty of Obedience
Directors must comply with legal, charter, bylaw, and contractual obligations.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA)
An approximate measure of operating cash flow calculated before deduction of interest, taxes, depreciation, and amortization.
Easement
An agreement allowing a utility to use another’s property for specific purposes, such as transmission lines.
Edison Electric Institute (EEI)
A national trade association of investor-owned utilities and holding companies based in Washington, D.C.
Electric Cooperative Bar Association
A NRECA professional network of attorneys specializing in cooperative utility law.
Electric Cooperative Business Network
An economic network facilitating information and service sharing among electric cooperatives via Cooperative.com.
Electric Power Research Institute (EPRI)
A nonprofit research organization supported by utilities to improve power production, transmission, and distribution.
Electric Rate Schedule
A statement of the rate and terms governing its application, accepted by a regulatory authority.
Electric System Losses
Energy losses in a system between supply sources and delivery points, primarily as heat.
Electric Utility
An entity that owns or operates facilities for generation, transmission, distribution, or sale of electricity to the public.
Embedded Costs
The cost of all facilities in a supply system, also called sunk costs.
Energy
The capacity for doing work, measured as potential or kinetic energy. Electrical energy in kWh, heat energy in BTU.
Energy Charge
The portion of an electric bill based on kWh consumed or billed.
Energy Deliveries
Energy generated by one utility and delivered to another through transmission lines.
Energy Efficiency
Programs aimed at reducing energy use by upgrading equipment without affecting services provided.
Energy Information Administration (EIA)
A DOE agency that collects, analyzes, and publishes statistical energy data.
Energy Policy Act
1992 legislation that loosened PURPA constraints, mandated open transmission access, and prevented federal retail wheeling mandates.
Energy Receipts
Energy generated by one utility and received by another through transmission lines.
Energy Services Company
An unregulated entity offering pricing, information services, equipment, or financing for energy efficiency.
Energy Source
The primary fuel converted to electricity, including coal, petroleum, gas, nuclear, wind, solar, geothermal, etc.
Equity
Total owner-contributed capital, including patronage capital, membership fees, and donations.
Facilities Charge
That portion of a bill based on costs of making service available to the consumer.
Facility
A location where prime movers, generators, and conversion equipment are situated or planned.
Federal Energy Regulatory Commission (FERC)
A DOE agency regulating interstate transmission of gas, oil, and wholesale electricity; licensing hydro projects.
Federal Power Act
1920 Act (amended 1935) regulating interstate transmission and wholesale rates; administered by FERC.
Federal Power Commission
Predecessor to FERC, regulated power and gas industries from 1920 to 1977.
Federated Insurance
Offers insurance products to electric cooperatives.
Firm Energy/Service
A contract to deliver energy regardless of acquisition cost to the provider.
Firm Gas
Gas sold on a continuous, long-term contract.
Firm Power
Capacity intended to be available at all times under guaranteed commitments.
First In, First Out
A method of retiring capital credits where earliest credits are retired first.
Fixed Costs
Expenses that remain constant regardless of sales or usage, such as rent, taxes, and depreciation.
Flue Gas Desulfurization Unit (Scrubber)
Equipment removing sulfur oxides from boiler exhaust before atmospheric discharge.
Flue Gas Particulate Collectors
Equipment removing fly ash from boiler exhaust, including precipitators and filters.
Fly Ash
Particulate matter from coal ash with diameter <10⁻⁴ m, removed by fabric filters or electrostatic precipitators.
Forced Outage
Shutdown of a unit or facility due to emergency or unanticipated breakdown.
Fossil Fuel
Naturally occurring organic fuels like petroleum, coal, and natural gas.
Fossil-Fuel Plant
A plant using coal, petroleum, or gas to produce electricity.
Franchise
The right or license granted to a utility to market services in a territory.
Fuel
Substances burned to produce heat, or fissionable materials used in nuclear reactions.
Fuel Expenses
Costs of fuel production, handling, unloading, and delivery to boilers or holders.
Fuel Factor
Portion of tariffs that pay for fuel costs in generation.
Fuel Surcharge
Additional charge to reconcile past differences between fuel factor and actual fuel costs.
Full-Forced Outage
Net capability unavailable for load due to emergency reasons.
G&T
A generation and transmission cooperative owned by distribution cooperatives, which generates or purchases power.
Gas
Fuel burned in boilers and engines for generation, including natural, manufactured, and waste gas.
Gas Turbine Plant
A plant whose prime mover is a gas turbine, with compressor, combustion chambers, and generator.
Generating Unit
Physically connected generators, reactors, boilers, or turbines operated together to produce power.
Generating plant
Facility containing equipment to convert mechanical, chemical, or nuclear energy into electricity.
Generation (Electricity)
Process of producing electric energy by transforming other energy forms; expressed in Wh.
Generator
Machine converting mechanical energy into electrical energy.
Generator Nameplate Capacity
Full-load continuous rating of generation equipment under manufacturer conditions.
Geothermal Plant
Steam turbine plant driven by steam from hot water or natural steam from underground heat sources.
Gigawatt (GW)
One billion watts.
Gigawatthour (GWh)
One billion watthours.
Grassroots
Electric cooperative activists—directors, managers, employees, and owners—who engage in political advocacy.
Greenhouse Effect
Warming of Earth’s surface caused by atmospheric gases trapping infrared radiation.
Grid
Layout of an electrical distribution system.
Gross Generation
Total energy produced by generating units at a station, measured at generator terminals.
Guaranteed Loan
Long-term loan by the Federal Financing Bank, guaranteed by RUS, primarily to G&Ts or distribution systems.
Hardship Loan
A 35-year loan by RUS to distribution systems at a fixed 5% interest rate.
Heavy Oil
Fuel oils remaining after lighter fractions distilled off; used in steam plants except for start-up.
Hydroelectric Plant
Plant where turbine generators are driven by falling water.
Independent Power Producer (IPP)
Private entity generating electricity and selling it to utilities or businesses.
Independent System Operator (ISO)
Neutral entity maintaining grid balance by dispatching flexible generation to match load.
Industrial
Sector defined by SIC codes 01–39, including manufacturing, construction, mining, agriculture, and forestry.
Intermediate Load (Electric System)
Load range between base load and peak, defined by midpoint, percentage, or period.
Internal Combustion Plant
Plant using engines where combustion converts fuel-air mixture into mechanical energy.
Interruptible Gas
Gas service that can be curtailed at the distributor’s discretion under contract terms.
Interruptible Load
Program enabling utilities to interrupt consumer load under contractual arrangements during peaks.
Investor-Owned Utility (IOU)
Stockholder-owned power company generating and distributing electricity for profit.
Key Account
A cooperative load critical to the financial well-being of the cooperative.
Kilowatt (kW)
One thousand watts.
Kilowatt-hour (kWh)
One thousand watthours; basic measure of electrical energy.
Large Non-Residential
End user with peak demand over one megawatt.
Light Oil
Fuel oils distilled off as lighter fractions, used in combustion and gas turbines.
Lignite
Brownish-black, low-rank coal with high moisture and volatility, used almost exclusively for power generation.
Load (Electric)
Electric power delivered or required at specific system points.
Load Factor
Ratio of average demand to peak demand, indicating load stability and efficiency.
Locational Marginal Pricing
Pricing process that handles congestion and transmission costs on a line-by-line basis.
MMCF
One million cubic feet.
Margin
Difference between a cooperative’s income and expenses; returned to members as capital credits.
Market-Based Rates
Generation rates based on competitive marketplace rather than cost-of-service.
Maximum Demand
Greatest demand that occurred within a specified period.
Mcf
One thousand cubic feet.
Megawatt (MW)
One thousand kilowatts.
Megawatt-hour (MWh)
One thousand kilowatt-hours.
Member
Someone who receives power from an electric co-op; synonymous with customer.
Mill
One-tenth of a cent; unit for energy pricing.
Municipal Rate Loan
Long-term RUS loan tied to municipal bond rates, interest capped at 7% for some borrowers.
Municipal Utility
City-owned utility selling services within city boundaries.
National Ambient Air Quality Standards (NAAQS)
Pollutant standards set by EPA under the Clean Air Act for six criteria pollutants.
National Association of Regulatory Utility Commissioners (NARUC)
Association of state and federal utility regulators.
National Information Solutions Cooperative (NISC)
Cooperative providing billing, mapping, and telecom services to electric co-ops.
National Renewable Energy Laboratory (NREL)
DOE’s premier lab for renewable energy research and deployment.
National Rural Electric Cooperative Association (NRECA)
Service organization representing consumer-owned co-ops; publishes industry magazines.
National Rural Telecommunications Cooperative (NRTC)
Service cooperative offering telecom services to rural consumers.
National Rural Utilities Cooperative Finance Corporation (CFC)
Member-owned cooperative providing financing and business assistance to co-ops.
Natural Gas
Mixture of hydrocarbon gases, primarily methane, found in geological formations.
Net Capability
Maximum load-carrying ability of equipment under specified conditions, excluding station use.
Net Generation
Gross generation less energy consumed at the station for plant use.
Net Summer Capability
Steady hourly output a generator can supply under summer conditions, excluding auxiliary power.
Net Winter Capability
Steady hourly output a generator can supply under winter conditions, excluding auxiliary power.
Non-Firm Power
Capacity supplied under commitments with limited or no assured availability.
Noncoincidental Peak Load
Sum of peak loads on individual systems not occurring simultaneously.
Nonutility Power Producer
Entity owning generating capacity but not classified as a utility; includes qualifying co-generators and independent producers.
North American Electric Reliability Corporation (NERC)
Organization ensuring bulk power reliability and adequacy in North America.
Off-Peak Gas
Gas delivered and taken on demand when overall demand is low.
Ohm
Unit of electrical resistance; 1 volt across 1 ohm yields 1 ampere.
Open Access
Permitting wholesale suppliers to use other utilities’ transmission lines.
Operable Nuclear Unit
Nuclear unit authorized to operate at full power after low-power testing and NRC amendment.
Outage
Period when a unit, line, or facility is out of service.
Peak Demand
Maximum load during a specified period.
Peak Load
Power required during peak demand, measured in kW or MW.
Peak Load Plant
Plant with units operated during peak periods, such as gas turbines or pumped-storage equipment.
Peak-Load Pricing
Higher rates for power used during high-demand periods to reduce peak usage.
Peak-Shaving Plant
Plant operating during high-demand periods to reduce system shortages and demand charges.
Peaking Capacity
Capacity reserved for operation during highest loads; may serve base load at other times.
Peaking Unit
Unit used only at high-demand periods to meet peak capacity.
Percent Difference
Relative change calculated as (current – previous)/|previous|×100.
Performance-Based Ratemaking
Rate setting that allows utilities to earn above regulated profits by exceeding targets.
Petroleum
Hydrocarbon mixture found underground, including fuel oils and kerosene.
Petroleum (Crude Oil)
Naturally occurring liquid hydrocarbons extracted from wells.
Planned Generator
Proposal to install generation equipment with environmental approvals, contracts, or financing secured.
Plant
Facility housing prime movers, generators, and auxiliary equipment for energy conversion.
Plant Use
Energy consumed within a plant for operation; subtracted from gross generation to report net figures.
Plant-Use Electricity
Electric energy used in plant operations; deducted from gross production for net reporting.
Power
Rate of energy transfer; measured in watts for electric power.
Power Broker
Entity facilitating wholesale energy trades without taking possession of the energy.
Power Generation Company
Firm owning and operating generation capacity for market sales.
Power Marketer
Entity buying and selling wholesale energy.
Power Marketing Administrations (PMAs)
Federal agencies selling hydropower first to consumer-owned systems at production cost.
Power Pool
Association of interconnected systems coordinating operations for reliability and efficiency.
Price
Monetary amount for which a service is bought or sold.
Primary Voltage Level
Voltage level used to transfer electricity within the grid to end users.
Prime Mover
Device converting energy to mechanical motion to drive generators, e.g., turbines or engines.
Profit
Income remaining after all business expenses are paid.
Public Authority Service to Public Authorities
Electricity and services provided to government entities under special contracts.
Public Street and Highway Lighting
Electricity and services for public lighting or signaling systems for government entities.
Public Utilities Holding Company Act (PUHCA)
1935 legislation regulating utility holding companies to protect investors and consumers.
Public Utilities Regulatory Policy Act (PURPA)
1978 law encouraging conservation, efficiency, and equitable rates.
Publicly Owned Utilities (POU)
Utilities collectively owned by citizens, including co-ops and municipals.
Pulse Metering
Metering that records power usage pulses along with energy consumption.
Pumped-Storage Hydroelectric Plant
Peak-period generation plant using water pumped to elevated reservoir during off-peak times.
Purchased Power Adjustment
Tariff clause adjusting bills when purchased energy varies from base amount.
Pure Pumped-Storage Hydroelectric Plant
Plant generating only from water previously pumped to an upper reservoir.
Qualifying Facility (QF)
Cogeneration or small power production facility meeting FERC criteria under PURPA, entitled to sell excess power at avoided cost.
Rate
Cost per kWh for electricity.
Rate Base
Value of property on which a utility earns a regulated return, calculated by approved accounting methods.
Rate Class
Consumer group with common characteristics served under the same tariff.
Rate Schedule or Tariff
Document explaining utility charges and conditions for energy and demand.
Rate of Return
Ratio of operating income plus interest expense to rate base.
Ratemaking Authority
Legal power of a commission to set, modify, or disapprove utility rates.
Redispatching
Reducing generation at one facility and increasing at another to alleviate congestion.
Regulation
Governmental rulemaking and adjudication functions controlling economic entities.
Reliability
Utility’s ability to deliver uninterrupted electricity.
Renewable Energy
Replenishable energy sources like wind, solar, hydro, and landfill gas.
Reserve Margin (Operating)
Unused available capability at peak load as a percentage of total capability.
Residential
Private households consuming energy for heating, lighting, and appliances.
Residual Fuel Oil
Heavy fuel oils from crude distillation, used for power, heating, and industrial purposes.
Restricted-Universe Census
Complete enumeration of data for a defined subset exceeding specified thresholds.
Retail
Sales of electricity for end-use by residential, commercial, industrial, or other small classes.
Retail wheeling
Allowing retail customers to contract with alternate generators transmitted over native utility lines.
Revenue
Total receipts from sales, asset gains, investment income, and other equity increases excluding capital adjustments.
Running and Quick-Start Capability
Capability of units carrying load or able to start within 30 minutes.
Rural Electric Cooperative (REC)
Consumer-owned cooperative formed under the Rural Electrification Act to provide service in rural areas.
Rural Electrification Act
1936 legislation establishing the Rural Electrification Administration to finance rural utilities.
Rural Utilities Service (RUS)
USDA agency providing loans and assistance to consumer-owned electric and telecom co-ops.
SERVCO
Federation of cooperatives providing services to distribution co-ops for member benefit.
Sales
Kilowatthours sold in a period, grouped by service class.
Sales for Resale
Energy supplied to utilities or agencies for resale to end consumers.
Scheduled Outage
Planned shutdown of a facility for inspection or maintenance.
Service Area
Geographic region a utility is required or authorized to serve exclusively.
Short Ton
2,000 pounds.
Small Power Producer (SPP)
Facility generating at least 75% renewable energy under PURPA, eligible to sell excess power.
Spinning Reserve
Reserve capacity synchronized to the system running at zero load.
Spot Purchases
Short-term fuel purchases for delivery within one year.
Stability
System’s ability to return to equilibrium after disturbance.
Standard Industrial Classification (SIC)
Codes categorizing industries by economic activity.
Standard Market Design
FERC initiative to unify market rules across the electric industry.
Standby Facility
Facility available to supplement a system, generally running no-load.
Standby Service
Support service available as needed under agreement without regular use.
Statewide Associations
State-level organizations advocating for co-ops before public and regulators.
Steam-Electric Plant (Conventional)
Plant where steam turbines driven by fossil fuel boilers generate electricity.
Stocks
Fuel supplies stored for future use, including coal and oil inventories.
Stranded Costs
Costs incurred serving customers now lost to competitors, unrecoverable under open access.
Subbituminous Coal
Dull black coal with 20–30% moisture, used for power and heating.
Substation
Facility equipment switching, changing, or regulating voltage.
Sulfur
Element in coal contributing to pollution; classified by weight percentage.
Switching Station
Equipment tying two or more circuits via switches to reconfigure connections.
System (Electric)
Integrated generation, transmission, and distribution facilities under one management.
Times Interest Earned Ratio (TIER)
Ratio of margins plus interest to interest expense, indicating debt coverage.
Touchstone Energy ®
National alliance of consumer-owned co-ops emphasizing local service and community values.
Transformer
Device changing AC voltage between circuits.
Transmission
Movement of bulk electricity from generation points to delivery transformers.
Transmission Constraints
Limitations on power transfer due to line capacity.
Transmission Line
Poles and conductors moving bulk electricity from plants to substations.
Transmission System
All equipment moving bulk power from plants to distribution networks.
Transmission System (Electric)
Interconnected lines and equipment moving bulk power between supply and delivery points.
Transmission and Distribution Facility
Capital equipment used to transmit energy from generator to user.
Transmission and Distribution Utility
Utility owning transmission and distribution equipment in a region.
Turbine
Machine converting fluid kinetic energy into rotary mechanical power.
Unbundling
Splitting utility operations into separate generation, transmission, and distribution entities.
Uniform System of Accounts
FERC-prescribed financial rules and regulations for jurisdictional utilities.
Universal Service
Electric service sufficient to meet basic needs for virtually all consumers regardless of income.
Useful Thermal Output
Thermal energy made available for processes other than electricity generation.
Voltage Reduction
Intentional system voltage reduction of 3%+ to maintain bulk power continuity.
Watt
Unit of power; 1 ampere under 1 volt at unity power factor.
Watthour (Wh)
Energy unit equal to 1 watt over 1 hour.
Wheeling Service
Movement of electricity across intervening systems under wheeling contracts.
Wholesale Competition
Distributors’ option to procure power from multiple market producers.
Wholesale Customer
Purchaser of energy for resale to retail customers.
Wholesale Sales
Energy supplied to utilities or agencies for resale to end consumers.
Video Gallery
Curious about where your electricity comes from or what happens when the lights go out? Our Electricity 101 video gallery is here to answer those questions and more. Designed to inform and engage, this collection of short videos explains how electricity is generated, transmitted, and delivered, and how you can stay safe and informed along the way. Whether you're a student, a consumer, or just eager to learn, these videos make understanding the power grid easier than ever.
Power Outage Q&A
Many transmission outages are planned in advance when crews need to perform system upgrades and routine repairs. Our staff strategically decide when to perform these system upgrades or routine repairs to ensure the duration of these planned outages is as short as possible and impacts the fewest people.
Although we are committed to providing our members utilities and the consumers they serve with the most reliable service possible, events beyond our control sometimes occur. Natural events such as lightning, high winds, winter storms, or man-induced accidents—such as transportation accidents and construction accidents—can cause service disruptions. Rest assured that whatever the cause, steps are taken to restore power as quickly as safely possible.
The answer will depend on where the damage occurred on the electric grid. Sunflower is an electric generation and transmission electric utility providing wholesale generation and transmission services to our seven member distribution utilities.
If an outage occurs due to a problem with high voltage transmission lines or substations, Sunflower’s crews fix the problem. If an outage occurs due to a problem with distribution substations or distribution lines, the crews from your electric service provider repair the problem. At times, Sunflower’s crews are called on to assist our members’ distribution crews and vice versa.
Many factors can cause this situation. Your neighbors may be on a different supply line, or there may be trouble just on the section of line supplying your immediate area. The cause of the outage may be isolated to one circuit or multiple circuits, or the problem may affect only the power lines connecting to your residence.
First, our staff and the staff from your electric service provider will work around the clock until service is restored. Safety of the public and our staff is our highest priority. The sequence for service restoration includes the following:
- Sunflower crews complete an assessment of the overall transmission system and focus on repairing major lines and substations. Crews must also clear hazards such as snapped or leaning utility poles or uprooted trees that may be on the electric lines or fallen wires.
- Crews from your electric service provider focus on restoring power to key services essential to community safety, health and welfare—such as hospitals, police stations, fire, communications, water, transportation and other vital public services.
- Repair priorities are based on the electrical facilities restoring service to the largest number of consumers in the shortest period of time. Once crews restore major circuits, they then turn their attention to system repairs affecting fewer consumers.
- Before the service to your street can be restored, crews must repair damaged substations and main electric lines and wires feeding power to streets such as yours. Next, downed or damaged wires between utility poles and individual homes are repaired.
When damage is widespread, such as after a severe storm, it may be impossible to restore electric service to everyone at the same time. In such cases, crews from your electric service provider must give priority to hospitals, police and fire departments, water systems, communication facilities, and other such essential services. After that, repairs are made based on restoring power to the greatest number of consumers in the shortest amount of time. Sometimes your circuit may be among the first repaired, and other times it may take longer. When there is a delay in restoring your power, your patience is very much appreciated.
With a widespread outage event, crews move quickly from call to call. They assess damage at the scene and make repairs or call for additional materials, equipment or manpower, depending on the problem. A distribution fuse can take a few minutes to repair; a distribution transformer can take a couple of hours to replace; but widespread damage to the transmission system can take days, weeks, or even months to repair. Widespread damage from a severe storm may make it impossible to accurately predict when a particular consumer’s power will be restored, especially in the early phases of an outage when the extent of the damage is unknown.
Once the extent of damage is understood, restoration times are affected by the degree of damage to the electric transmission and distribution facilities. High-voltage transmission lines are given first priority because they supply electricity to the entire distribution system. Substations are repaired next to energize local distribution lines. A distribution line serving a local area may have multiple damage locations, all of which must be found and repaired. All these factors affect the ability to predict when a specific consumer’s power will be restored.
Service crews must first address public safety hazards and make repairs that restore power to essential service loads. A truck may have passed your home as part of conducting early system assessments or on the way to one of these high-priority assignments.
If your power goes out, please report the service outage but do not report a downed wire unless you actually see one at your location. Never assume a damaged system conductor (wire) is de-energized. Always treat conductors as though they are energized. Low hanging or conductors on the ground can still be energized. They can also suddenly become energized during system recovery, which can cause serious injury or death. Stay clear of any conductor, electric lines, and other infrastructure until they are safely cleared by proper utility personnel.
If there is no downed wire at a location where one has been reported, this only slows down restoration efforts. Each downed line report must be assessed before repairs can be made. Time spent traveling to and checking out a working location slows down the process of restoring power. The bottom line is, if you see a downed wire, report it to your electric service provider because public safety is the main concern. Otherwise, if your power is out, just report to your electric service provider that your power is out. You will help restore everyone’s power more quickly.
Restoring power to your home is a complex and dangerous job. Sometimes, after a line is repaired in one location, other damage causes the line to go out again. At other times, it may be necessary to turn off your power once more to safely repair other problems. In any case, crews work to restore your power again as soon as safely possible.
Sunflower and your electric service provider regularly update local news media on outage restoration efforts. Checking the websites and/or social media pages of Sunflower and/or your local service provider is the easiest way to stay informed of outages and the restoration progress after a storm. During a sustained regional outage, the Kansas Electric Cooperatives, Inc., website may post information concerning the outage.
Yes, but please follow the manufacturer’s directions and make sure your home is properly safeguarded so as not to interfere with the flow of electricity once the power is restored. Improper connection of an emergency generator cannot only damage the generator or your own equipment, but such a generator may also back feed the normal electric feed to your home and place the lives of crews at risk as they restore the system.
Most distribution lines are protected by special devices called breakers and reclosers. These devices not only cut off power when a fault occurs, but they can also automatically close to re-energize the circuit. If a momentary fault occurs, as sometimes happens, the short-circuit condition quickly clears, and the line is automatically re-energized. When this occurs, there is a momentary loss of power (typically less than a few seconds) to the consumers on that circuit.
Power comes into your house through a piece of electrical equipment called the service panel. From your home’s service panel, electricity is routed through individual circuits to different parts of the house. Each circuit is protected by a circuit breaker or fuse. When you have power in some circuits but not others, the first action step is to check your own service panel to determine whether a circuit breaker is tripped or a fuse is blown. If your breakers or fuses are okay, contact your electric service provider.
Outages due to weather are beyond our control, and although Sunflower and your electric service provider will work together to attempt to restore power as quickly and safely as possible, extensive system damage can take several days to repair. Unfortunately, reimbursement is not made to consumers for equipment damaged or food lost during events outside our control. Consumers should contact their renter’s or homeowner’s insurance carrier to determine if their policies cover such losses.
You are only charged by your electric service provider for the amount of electricity you use. During the time your service was interrupted, your meter did not register electric use, and you will not be charged for any consumption.
Those who have electrically operated medical equipment in their home that is necessary to sustain life or avoid serious medical complications should contact their electric service provider with this information prior to an outage. If an outage occurs, you should contact your electric service provider immediately to alert them of the situation.