A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Act 69
A 1929 Michigan law requiring any electricity or gas provider, intending to
serve customers within a municipality where another utility already is
providing service, to obtain a "Certificate of Public Convenience and
Necessity" from the Michigan Public Service Commission (MPSC).
Affiliate
Entity that directly or indirectly controls, is controlled by, or is under
common control with the referenced entity. Control means the ownership,
authority, or power to vote 10% or more of the voting securities. The
particular use referenced in this document refers to affiliates of the
regulated utilities serving customers in the utility's service area.
Aggregation
Pooling together customers' electric loads to create a larger buying group for
purchasing power.
Aggregator
Entity that pools customers into a buying group for the purpose of purchasing a
large block of power. Retailers, customers, and brokers may also act as
aggregators.
Alternative Electric Supplier (AES)
Entity authorized to make retail sales of electricity according to requirements
defined by the Michigan Public Service Commission. Alternative electric
suppliers purchase the power they market and take title to any power they
represent.
Ancillary Services
Services necessary to maintain reliable operation of the transmission system
during the delivery of power from the marketer to the utility's distribution
system. Ancillary services must be offered by the transmission provider to
buyers or sellers of retail electricity. Some services may be offered by third
parties. Six key ancillary services are identified in the Detroit Edison Open
Access Transmission Tariff (OATT):
- Scheduling, system control and dispatch
- Reactive supply and voltage control from generation sources
- Regulation and frequency response
- Energy imbalance
- Operating reserve - spinning reserve
- Operating reserve - supplemental reserve
Available Transfer Capability (ATC)
Amount of transmission capacity available from the point of receipt to the
point of delivery.
B
Backup Service
Service that can be provided by Detroit Edison to a retailer or marketer that
would replace scheduled power at the point of receipt if the marketer fails to
deliver power or power cannot be delivered because there is a transmission
system constraint.
Bid Classes
Customer groupings based on historic levels of electric consumption used to
allocate capacity through the bidding process to separate bidding
classifications and ensure that all classes of customers can participate. The
three bid classes are:
- Residential only
- Residential/small secondary
- Primary/large secondary
Bidder
Entity who bids for available capacity during the phase-in period. Any entity
capable of legally engaging in a contract in the State of Michigan is eligible
to bid.
Billing Determinants
Measured or calculated values used to determine a bill. These include
applicable usage values, fixed charges, and any minimums.
Broker
Entity that arranges the sale and purchase of energy, transmission, and other
services between buyers and sellers but does not take title to any of the power
in the transaction.
Bundled Service
Provision of electric generation, transmission, distribution, and related
support functions as a combined service. This represents the normal offering
from today's vertically integrated electric utilities.
C
Capacity Allocation
Setting aside blocks of electric capacity for specific bid classes (see bid
classes definition) to provide an opportunity for all customers to choose an
alternate electricity provider during the phase-in period of the Electric
Choice Program.
Capacity Owner
Term that Detroit Edison uses to identify a bidder who has been awarded
capacity.
Capacity Release
Winning bidder's capacity that is being made available for sale in a secondary
market.
Capacity Sale
Sale of capacity rights held by a capacity owner (or subsequent buyer) to
another party.
Commercial Customer
Customer who is generally referred to as the "business" customer.
Commercial customers can fit into one of several categories; i.e., large or
small, manufacturing and non-manufacturing. Generally Detroit Edison would own
the high-voltage transformation equipment used to serve this customer.
Company’s System
All electric generation, transmission, and distribution facilities owned by
Detroit Edison.
Complete Billing Option
Billing option under which Detroit Edison will supply the customer with a
single bill that includes distribution charges and the retailer's charges.
Control Area
Electric power system, or combination of systems with common, automatic
generation control. Detroit Edison and Consumers Energy operate a combined
control area under an electric coordination agreement, commonly known as the
Michigan Electric Coordinated System (MECS). The control area is responsible
for:
- Matching the control area’s internal generation and external purchases to the load at all times
- Maintaining scheduled interchange with other control areas
- Maintaining the frequency of the electric power system(s)
- Providing sufficient generation capacity to maintain operating reserves
Control Area Operator
Utility, pool, or other entity that operates a control area. For the Detroit
Edison service territory, this function is performed by the Michigan Electric
Power Coordinating Center (MEPCC) on behalf of Detroit Edison and Consumers
Energy.
Creditworthiness
Ability of an entity to meet specific financial obligations necessary to
receive credit from and transact business with Detroit Edison.
Customer
End-user of electricity at one or more locations in the State of Michigan, who
has facilities connected to the Detroit Edison distribution system.
Customer Classes
Traditional utility customer groupings, generally industrial, commercial, and
residential customers. See also Bid Classes.
D
Direct Access
See retail access. The Detroit Edison preferred term is retail access.
Distribution Provider
Regulated electric utility that constructs, maintains, and operates the
distribution system that connects the transmission grid to end-use customers.
Detroit Edison serves in this capacity in southeastern Michigan.
Distribution System
Low-voltage electrical system used to deliver electricity from the wholesale
transmission system to the end-use customer.
Distribution Utility
Regulated electric utility that constructs, maintains, and operates the
distribution system that connects the transmission grid to end-use customers.
In most cases this entity offers "customer service" functions (such as
metering and billing) that extend beyond the "wires" function to
distribute tariffed bundled service. Detroit Edison serves as the distribution
utility for much of southeastern Michigan. Also known as Local Distribution
Company (LDC) or Utility Distribution Company (UDC).
E
East Central Area Reliability Council (ECAR)
Coordination group of electric utilities in eight east-central states working
together to achieve the highest possible degree of reliability in their bulk
power supply and prevent energy and/or system emergencies.
Electric Choice
Name for the Detroit Edison retail access program.
Electric Utility
Private entity or state agency (including any municipality) with a monopoly
franchise, that sells electric energy to end-users. This term usually refers to
a vertically integrated utility that provides generation, transmission, and
distribution services.
Electricity Generator
Regulated or unregulated entity that operates and maintains power plants or
other generation sources with the capability of producing electricity for sale
to customers.
Electronic Business Transactions (EBT)
Generic term for business transactions that are conducted computer-to-computer
in standardized communication formats.
Electronic Data Interchange (EDI)
Computer-to-computer exchange of business documents in a standard message
format. The use of standardized data formats allows organizations to exchange
common business documents without customizing their hardware or software for
each organization with whom they do business.
Electronic Funds Transfer (EFT)
Generic term for electronically transferring money between financial
institutions’ accounts.
Energy Imbalance
Difference between the scheduled delivery and the actual usage of energy to a
specific point on a utility's distribution system over a time period, usually
tracked hourly and measured in kilowatts. When imbalances exist, the control
area operator either makes up the shortfall or absorbs the excess generation
and either charges or pays the marketer for the under/oversupply.
F
Federal Energy Regulatory Commission (FERC)
Federal counterpart to state utility regulatory commissions. FERC regulates the
prices, terms, and conditions of power sold in interstate commerce. FERC also
regulates the prices, terms, and conditions of all transmission services.
Franchise
Agreement granted by a municipality giving an entity the legal right to conduct
business within a township, village, city or other local government unit.
G
Generation Dispatch and Control
Aggregating and dispatching generation from various facilities providing backup
and reliability services. Used to provide ancillary services including the
provision of reactive power, frequency control, and load following.
Generator
See Electricity Generator.
H
Hourly Load Determination
Method for calculating the hourly usage for a specific customer based on the
total kWh consumed and a representative hourly profile for the customer
class.
I
Independent System Operator (ISO)
Independent third-party with no financial interest in generation facilities
that administers the operation and use of transmission systems owned by
utilities. ISOs exercise final authority over the dispatch of generation to
preserve reliability and facilitate efficiency, ensure non-discriminatory
transmission access, administer transmission tariffs, ensure the availability
of ancillary services, and provide information about the status of the
transmission system and available transmission capacity. An ISO is regulated by
FERC.
Industrial Customer
Customer who is generally a major user of electricity and owns its high-voltage
transformation equipment. This type of customer is assigned to an account
executive who is responsible for handling all account matters, including
service quality.
Interval Meter
Meter that measures and accumulates how much energy a customer uses during
specific time intervals, usually an hour or half-hour.
J
Joint Open Access Transmission Tariff (JOATT)
Rate schedules and terms and conditions for open access transmission service
filed by Detroit Edison and Consumers Energy with the Federal Energy Regulatory
Commission (FERC), as amended from time to time. The tariff applies to
transactions where energy flows through both the Detroit Edison and Consumers
Energy transmission systems.
K
Kilowatt (kW)
One thousand watts of power. A light bulb is often 100 watts.
Kilowatthour (kWh)
A measure of electricity consumption equivalent to the use of 1000 watts of
power for a one-hour period.
L
Large Customer
Customer with ownership and control over a load that is greater than one (1)
megawatt. The one (1) megawatt minimum may be a single location or the sum of
non-coincident loads at multiple locations.
Large Secondary Customer
Non-residential customer served at 480 volts or less that is larger than
customers meeting the small secondary criteria and, therefore, requires
interval metering for retail access service. Under the Detroit Edison Electric
Choice Program, all three-phase secondary non-residential customers are
classified as large secondary.
Line Losses
Energy consumed in moving power through a utility’s system between the point of
receipt and the point of delivery.
Load
Amount of electricity required at a given time by energy customers measured in
kilowatts.
Load Duration Curve
Graph of a customer's metered interval kilowatt demands achieved over a given
time period ranked from high to low.
Load Following
Practice of matching the generation destined to serve a load, to that load, on
a real-time basis.
Load Profiling – Following
Method of using established load profiles and measured kWh usage to calculate
hourly energy use over a given period for purposes of reconciliation
calculations. The imbalance risk remains with the marketer. Detroit Edison is
using this method.
Load Profiling - Leading
Method for forecasting load profile demand data for the purpose of scheduling
generation. In some cases profiling may also be used for reconciliation thereby
shifting imbalance risk to the host utility.
Local Distribution Company (LDC)
(see Distribution Utility definition)
M
Marketer
Entity that takes title to and sells power and has FERC approval to market
energy services. The marketer role may also be assumed by utilities that sell
power outside their own service areas. Within the Detroit Edison Electric
Choice Program, the term marketer takes on a more specific meaning. It refers
to the entity that lines up sources of generation and arranges to move the
power through one or more transmission systems to deliver it to the Detroit
Edison distribution system. A marketer can also be a retailer.
Maximum Demand
The highest demand of the load that has occurred within a specified period of
time.
Megawatt (MW)
One million watts of power. In the Detroit Edison Electric Choice Program,
bidding for capacity is for a minimum of 1 MW, as is transmission capacity
reservation.
Michigan Electric Coordinated System (MECS)
A joint electric coordination agreement with Consumers Energy and Detroit
Edison to provide coordinated planning, coordinated operation, and mutual
assistance to effect savings and improve the reliability and quality of service
of either or both systems.
Michigan Electric Power Coordination Center (MEPCC)
A power pool arrangement jointly operated by Detroit Edison and Consumers
Energy to coordinate the operation of their generating and transmission
facilities for the benefit of Michigan customers.
Michigan Public Service Commission (MPSC)
Entity created by Michigan law to regulate investor-owned electric and rural
electric cooperatives within the state.
Multi-Vendor Translation System (MV-90)
System used to translate/collect time-of-use information from electric meters
via telephone l ines or portable computer devices.
N
Non-Coincident Demand/Loads
Sum of the individual maximum customer loads (or demands) measured at different
locations at whatever time each location reaches the maximum. This is in
contrast to a coincident demand determination in which the hourly demands for
the relevant locations are summed and then the peak hour for that sum becomes
the relevant measure.
Nondiscriminatory Pricing
Requires utilities to charge the same fees to all users for like transactions
and services.
North American Electric Reliability Council (NERC)
Entity formed in 1968 to promote reliability of the electricity supply for
North America. The Council consists of ten (10) regional councils, one of which
is ECAR.
O
Obligation to Serve
Obligation of a utility to provide electrical service to any customer who seeks
that service and is willing to pay the regulated rates set for that service. In
the future, the obligations to provide a connection to the electrical system
and the obligation to supply energy may be separated. The utility's future
obligation to serve a retail access customer may be limited to providing
transmission and/or distribution services.
Open Access
See retail access. Detroit Edison prefers to use the term retail access.
Open Access Same Time Information System (OASIS)
An electronic posting system for transmission access data that allows all
transmission customers to view the data simultaneously.
Open Access Transmission Tariff (OATT)
Utility rates schedules and terms and conditions for open access transmission
services on file with the Federal Energy Regulatory Commission (FERC).
Optional Ancillary Service
Optional services used during the delivery of power that a marketer, retailer
or customer may purchase from a utility or other vendor. (See also Ancillary
Services).
P
Participant
Generic term used to describe entities involved in the Electric Choice Program.
Examples include customers, bidders, aggregators, retailers, and marketers.
Peak Demand/Peak load
Electric load (in kilowatts) that corresponds to the maximum level of electric
demand in a specified period of time.
Point of Delivery (Distribution)
Point where a utility transfers power from its transmission system to the
customer’s service location or to another utility’s transmission system,
usually at the electric meter.
Point of Receipt (Distribution)
Point where a utility receives power from a marketer/retailer for delivery
through its transmission system to a customer or to another utility’s
transmission system, usually at the transmission/distribution system
interface.
Power
Combination of the electric demand and energy requirements of a customer. Also
relates to the generation or transfer of electric power. Usually expressed in
kilowatts.
Power Pool
Entity established to coordinate short-term operations to maintain system
stability and achieve least-cost dispatch. The power pool provides services
such as: backup service, short-term excess power sales, reactive power support,
and spinning reserve. Detroit Edison and Consumers Energy presently operate the
Michigan Electric Power Coordinating Center (MEPCC) under an electric
coordination agreement providing pool and control area services.
Price Schedule
Table of billing determinants and associated prices used by the retailer for
billing their customers. When the complete billing option is used, the retailer
provides Detroit Edison this information to calculate the retailer portion of
the customer's electric bill.
Primary Customer
Non-residential customer, served at 4,800 volts or higher.
Q
R
Rate Schedule
Document describing the services provided and related terms, conditions, and
prices for products and services received from the local distribution company
or other regulated provider.
Rate Ready Schedule
Basic rate information provided to Detroit Edison by the alternative electric
supplier when the alternative electric supplier selects the complete billing
option. The schedule identifies specific product offerings the alternative
electric supplier is providing to the customer.
Reactive Supply and Voltage Control
Maintenance of voltages within acceptable limits by operating generation and
transmission facilities within a control area. This is a mandatory ancillary
service
Real Power Losses
See Line Losses.
Reciprocity
Requirement for in-state or out-of-state utilities and their affiliates selling
electricity in another utility’s service territory to offer a proportionate
amount of load on their system to competitive supply.
Reconciliation
Hourly comparison of a marketer's schedule (power provided) to its customer's
collective loads (including losses) to determine if the marketer met its load,
or oversupplied or undersupplied power within the hour. This becomes the
determinant for energy imbalance charges or payments.
Regulation and Frequency Response
Provision of continuous balancing of generation and interchange power with load
and maintaining scheduled interconnection frequency at 60 cycles per second.
This is a mandatory ancillary service.
Residential Customer
Residential dwelling (house, condominium, apartment) that is individually
metered.
Restructuring
Process of separating utilities into their separate functions; transmission,
distribution, generation, and services, while retaining continued regulation of
distribution and transmission services which results in a competitive market
for electricity supply.
Retail Access
Ability of a retail customer to purchase electricity from a retailer other than
the local utility and have it delivered over the local utility's transmission
and distribution system (Also known as direct access and open access). The
Detroit Edison retail access program is known as Electric Choice.
Retail Access Service Tariff (RAST)
Michigan Public Service Commission approved tariff which sets forth the Detroit
Edison rates, charges, terms and conditions of service for the delivery of
energy purchased by the customer from a retailer and supplied by a marketer at
a designated point of receipt and ultimate delivery to an end-use customer.
Retail Access Transaction
Contract between one or more generators, marketers, or retailers of electric
power and one or more retailers or customers providing for the purchase and
sale of energy. Contract between a retailer or marketer and the local
distribution company for the delivery of energy and/or any ancillary
services.
Retail Wheeling
Act of transmitting power from a third party generator to a retail customer to
complete a retail access transaction.
Retailer
See Alternative Electric Supplier.
S
Scheduling
Scheduling the movement of power through, into, within or out of a control
area.
Secondary Market
Market that allows successful bidders to sell or assign awarded retail access
capacity to another entity.
Securitization Bond Charge
Charge on the customer's bill that represents the payment of principal and
interest associated with issuance of securitization bonds to recover the cost
of past utility investments.
Securitization Bond Tax Charge
Charge on the customer's bill that represents the recovery of an income tax
liability incurred by Detroit Edison arising from the collection of
securitization bond principal payments.
Separate Billing Option
Billing option under which the customer will receive separate bills from
Detroit Edison for distribution services and from their retailer for energy and
other related retailer charges.
Separately Metered Load
Electrical load which is served through a single meter or group of meters so
that the usage is uniquely identified.
Set Aside
Capacity made available exclusively to small customers within a bid period to
encourage their participation. The two set asides are:
- Residential only, awarded prior to other classes
- Residential/small secondary, awarded with the second highest priority
SINK
Unique four-character node indentifier used in transmission path naming
terminology to represent the location or aggregate location where energy is
consumed.
SINK-Meter Link
Functional process which establishes the relationship between a customer and
its marketer. The customer, identified by the meter number, is connected or
linked to a particular load group which belongs exclusively to a unique
marketer.
Small Secondary Customer
Non residential customer, served at 480 volts or less, that has single-phase
service, 240 volts or below. A small secondary customer will initially qualify
for a meter waiver and will be load profiled, pending the outcome of an
analysis of future metering capabilities and cost.
Special Contract
Contract that provides for utility service under terms and conditions other
than those listed in the utility’s tariff. The ability of a customer to
participate in Retail Access is limited by the terms of any special contracts
under which they may be presently operating.
Spinning Reserve
Reserve generating capacity that is immediately available to meet unexpected
power needs. Referred to as “spinning” because the generating units are on-line
and available to serve additional load immediately.
Standby Service
Service that can be provided by Detroit Edison to a customer that would replace
scheduled power at the point of receipt if the marketer fails to deliver power
or power cannot be delivered because there is a transmission system constraint.
Standby service will be provided on a contractual basis.
Stranded Costs
MPSC-approved costs such as generation, power contract, and regulatory assets
currently paid by customers, but which may not be recoverable by the utility if
customers switch to another supplier.
Supplemental Reserve
Generating capacity used to respond to contingency situations. This reserve
power is available within a short time period (usually 10 minutes). Sources
include generating units that are on-line but unloaded, quick-start generation,
and interruptible customer loads (to reduce system demand).
Supplier
Entity that owns or has title to electric generation. Detroit Edison sometimes
uses the terms retailer and/or marketers when referring to suppliers.
T
Time Of Use (TOU) Meter
Meter that measures and accumulates customer energy usage during specific
time-of-day intervals, usually an hour or half-hour and in total.
Time Of Use Rates
Rates charged to customers based on when they use energy as well as how much
energy they use. These are usually fixed rates specified for different blocks
of time and are based on forecast costs.
Top Incremental Cost
Utility’s highest hourly incremental cost for power.
Total Transfer Capability (TTC)
Maximum load that a transmission system can carry for all users under specified
conditions for a given period without exceeding approved limits of temperature
and stress.
Transition Charge
Mechanism by which stranded costs continue to be paid by customers who switch
to another supplier. These costs include implementation costs required to
facilitate retail access.
Transmission Constraints
Physical limitation of the transmission system components to carry a load under
specified conditions for a given period. These constraints determine a
load-carrying limit, which is used to determine available transfer capability
(ATC).
Transmission Loading Relief
A North American Electric Reliability Council-approved procedure used for
interconnected electric systems in the eastern portion of the United States to
maintain transmission service reservation priorities provided by open access
transmission tariffs and to avoid or eliminate operating limit violations which
jeopardize the safety and reliability of lines and equipment.
Transmission Provider
Entity that provides transmission service, including ancillary services in a
given geographic area. Generally, this is a function of an integrated electric
utility.
Transmission Service
High-voltage, bulk transport of power from generators to a specified
distribution system. The transmission provider maintains and operates the
transmission system in a given geographical area to ensure overall reliability
of the electric system.
Transmission System
High-voltage wires that connect generation facilities with distribution
facilities.
Transmission Utility
Regulated electric utility that constructs, maintains, owns, and operates the
transmission system.
U
Unbundled Bill
Billing that separates and itemizes utility services that were traditionally
combined. For example, delivery and energy supply charges appearing as separate
items on the bill.
Unbundling
Disaggregating electric utility service into its basic components and selling
each component separately at individual rates. For example, generation,
transmission, and distribution could be unbundled and offered as discrete,
individually priced services.
Utility
Regulated entity that exhibits the characteristics of a natural monopoly. For
the purposes of electric industry restructuring, "utility" refers to
the regulated, vertically integrated electric company. "Transmission
utility" refers to the regulated owner/operator of the transmission system
only. "Distribution utility" refers to the regulated owner/operator of
the distribution system that serves retail customers.
Utility Distribution Company (UDC)
See Distribution Utility. Also known as Local Distribution Company.
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