Glossary of Electric Billing Terms

The list of terms below apply to all four states served by Allegheny Power. For state-specific terms, click the state below.

Alternative Electric Supplier (AES) - The name given to competitive suppliers of retail electric services in Maryland, Pennsylvania and Virginia who make retail sales of electric energy to customers on the distribution company's distribution system and in doing so procure power for customers and cause that power to be supplied to the distribution company for delivery to the customer.

Customer Choice - The opportunity for retail customers in Maryland, Pennsylvania & Virginia to choose their supplier or generator of electricity.

Customer Charge - The fixed monthly cost for such services as meter reading, billing,  line maintenance, and equipment.

Default Service - Electric generation service available to customers who do not choose a competitive electric supplier, or for those customers who do not or are unable to renew service with a competitive electric supplier.  This is sometimes called "PLR-- provider of last resort” or “SOS--standard offer service."

Demand - The amount of power required to meet the customer's load at a given instant or averaged over any designated interval of time, expressed in kilowatts. 

Demand Charge – One element of pricing used in calculating a customer’s total bill (Energy Charge and Customer Charge are other elements).  The demand charge is assessed on the maximum or peak amount of demand required by the customer during the billing cycle.

Distribution - The delivery of electricity to a retail customer's home or business through distribution lines. Generally speaking, the transmission system refers to the high-voltage, long-distance wires and associated equipment used to move electricity from large generators to a utility distribution system. The distribution system is the lower-voltage, shorter-distance wires and associated equipment that moves electricity from the transmission system to the retail customer's point of delivery.

Distribution Charge - As electric utility services are unbundled, utilities will separate the fees associated with each major component of electric service, including generation, transmission and distribution.  A utility distribution charge is a charge for delivering electricity from a customer's chosen supplier to their residence or business, and may include a Customer Charge, Demand Charge and Energy Charge.

Electric Meter - Generally, a device that measures the amount of electricity a customer uses. The primary types of electric meters are energy meters, demand meters and interval demand meters.  An energy meter is the simplest type of electric meter. It measures electricity use, referred to as kilowatt-hours (kWh). A demand meter measures kilowatt-hours used, and also the maximum electric use referred to as peak capacity or demand. An interval demand meter records the demand used in each measuring period. The periods are typically every 15 or 30 minutes, depending on the specific meter and the manner in which the utility rates are calculated.

Energy - The capacity for doing work. In the context of electricity rates and services, the word "energy" refers to electrical energy. In this sense, energy is a measure of the quantity of units of electricity used in a given time period, measured in kilowatt-hours (kWh).

Energy Charge - The charge for the electricity used by an electric customer during the billing period, measured in kilowatt-hours.

Generation - The process of producing electricity by converting other forms of energy into electricity.

Kilowatt (kW) -One thousand watts, a standard measure of demand for power or capacity.

Kilowatt-hour (kWh) - The standard unit of measure for electric energy. One kilowatt-hour is one kilowatt of electricity used for one hour.

Minimum Charge - The total of all the payments a customer will owe for electric services regardless of how much electricity the customer uses, if any, during a billing period. Typically, it is the total of all customer service charges, demand charges, and any other fees that are assessed regardless of energy used during any one billing period.

Price to Compare (Shopping Credit) – Price per kilowatt-hour a consumer uses to compare prices and potential savings of service from generation suppliers with the utility companies generation rates.

Transmission - The bulk transport of high-voltage power, typically over longer distances, between generating plants and distribution systems.

Transmission Charge - The charge associated with the movement of high-voltage electricity from a generation facility to the distribution lines of an electric distribution company.

 MARYLAND

• Administrative Credit:  Reflects revenues collected in excess of the Company’s incremental costs to provide Type I SOS and Type II SOS.
• Co-Generation PURPA Surcharge: Costs associated with the purchasing of power from the AES/Warrior Run power station.
• Electric Universal Service Fee: Costs associated with the funding of a state program to assist low-income customers. Because Allegheny Power reduces its distribution charge by the same amount as the costs, this charge does not increase the Total Payment Due
• Energy Cost Adjustment:  This surcharge shall recover the difference between billed Transmission and Electric Supply Charges against payments by the Company to PJM and wholesale electricity suppliers.  This may result in a charge or credit.
• Franchise Tax: A state tax based on the amount of electricity delivered to customers.
• MD Environmental Surcharge: Costs associated with the funding of the state Power Plant Research Program.

PENNSYLVANIA

• PA Tax Adjustment Surcharge: A tax to recover the increase in the Pa. Public Utility Realty Tax (PURTA) Surcharge
• CTC Charges: An amount collected from customers to allow electric utilities to recover some deregulation costs
• ITC Charges: An amount collected from customers to pay for interest and principle on transition bonds issued to reduce deregulation costs
• Transition Charges: The amount Allegheny Power is allowed by the Public Utility Commission to collect from customers for transitional deregulation costs. These included the Competitive Transition Charge and the Intangible Transition Charge
• State Sales Tax: Required state sales taxes collected for the Commonwealth of Pennsylvania.

VIRGINIA

• Consumption Tax: A state tax based on the amount of electricity used by customers.
• Local Tax: A tax imposed by local ordinance on electricity services.
• Sales and Use Tax Surcharge: State tax imposed on but not limited to public service corporations including electric suppliers, telecommunications companies and gas, water and sewer utilities.

 WEST VIRGINIA

• Environmental Control Charge (ECC): Surcharge to finance the installation of flue gas desulphurization equipment (scrubbers) at our Fort Martin Power Station near Maidsville, WV.
• Local Tax: Tax imposed by Municipalities on electric services.
• Local Tax Surcharge: Surcharge for electric service supplied within specified Municipalities under local tax adjustment provisions.