Cross Subsidies: A rate structure where one class of customer is charged an above-average price so that another class of customer can pay a below-average price.
FERC: U.S. Federal Energy Regulatory Commission. It controls about 30 percent of that country’s electricity transmission.
Grid: A network of transmission lines, transformers and transmission stations for the movement of electricity.
Kilowatt: 1,000 watts
Megawatt: 1 million watts
Wheeling: The transmission of electricity owned by one company over the lines and facilities of another. This is
usually done for a fee.
Retail wheeling: The sale and transmission of electricity to an end user by a company that is not directly connected to that customer using another company’s lines and facilities.
Wholesale wheeling: The movement of electricity owned by one
company on the transmission system of another company.
Unbundling: The separation of a utility’s distribution, transmission and generation systems to allow for their
specific accounting.
