Electricity Deregulation

Here is the Electricity Deregulation Glossary Of Terms. Click on a title to learn more.

Customer Charge

A charge to recover part of the Utilities costs for service connections and customer services.

Customer Rate

Customer’s service classification

Distribution Facilities Charge

A charge for costs incurred by utility for delivering electricity to the customer

Electricity Supply Charge

Charge for electricity provided during the billing period.


Estimated usage data based on a customer’s historical usage patterns

Customer Choice

The opportunity for retail customers in deregulated states to choose their supplier or generator of electricity.


The amount of electric energy required to meet the customer’s load at a given instant or averaged over any designated interval of time, expressed in kilowatts.


The delivery of electricity to a retail customer’s home or business through lower voltage distribution lines. This service is provided by the local Electric Distribution Company.

Local Distribution Company (LDC)

An LDC is the company who owns the local distribution system of poles and wires. The LDC has the responsibility to deliver electricity to all customers regardless of who they chose to supply generation.

Electric Generation Supplier (EGS), Alternative Electric Supplier (AES) or Retail Energy Provider (REP)

These are the various names given to competitive suppliers of retail electric generation services. The EGS produces or purchases generation supply and arranges for delivery of the energy over the transmission system to the EDC’s distribution system and ultimately to the customer.

Kilowatt-hour (kWh)

A kWh is the standard unit of measure for electric energy. One kilowatt-hour is one kilowatt (1000 watts) of electricity used for one hour.


Bulk transportation of high-voltage power, typically over longer distances, between generating plants & distribution systems. This is generally provided by a system operator responsible for a very large region.