Seven Energy Terms You Should Know

Every 3 years the Public Utilities Commission of Ohio (PUCO) requires electric aggregations like NOPEC to send a letter to every eligible customer, providing information about the aggregation program available to them. This is what is sometimes referred to as an anniversary mailing.  If you are eligible for NOPEC’s electric aggregation through your community, you likely recently received this letter in the mail. With energy rates on the rise throughout Ohio, more people are paying attention to the electricity industry than ever before. 

If you’ve ever found electricity terms confusing, you’re not alone. Here are seven key energy terms with straightforward explanations to help make things clearer: 

Energy supplier  

An energy supplier buys electricity and/or natural gas on behalf of its customers, establishing the rate you pay for the commodity. In the case of NOPEC, by leveraging the bulk buying power of nearly one million customers, NOPEC can provide competitive rates and simple terms and conditions.  

Utility  

The company in charge of delivering energy to your home. They are also in charge of grid maintenance, including fixing power lines when they go down. In deregulated states such as Ohio, consumers have the option to select their electricity supplier, but their utility is determined solely by location.  

PUCO   

The Public Utilities Commission of Ohio is a government entity that regulates utility services, including electricity and natural gas companies.    

Energy Aggregator 

An energy aggregator, like NOPEC, is an organization that brings customers together to form a buying group to secure competitive energy rates and better terms and conditions. All aggregators must be certified by PUCO to provide these services in Ohio. There are different kinds of aggregation; NOPEC is a council of governments, making it a public entity that represents the interests of its member communities. 

Enrollment Anniversary  

Every three years, the PUCO requires NOPEC to send out letters reminding customers that they are a part of the aggregation and providing newly eligible customers with information about the aggregation program. This mailing period is called the enrollment anniversary. The letter reminds customers of what NOPEC does and informs them that they can opt out of the aggregation. 

Kilowatt hour  

Often abbreviated as kWh, this is the unit of measurement that electricity usage is measured in. You will see this on your monthly bill. Additionally, your supply rate that you pay for electricity is measured by cents per kilowatt hour.  

Capacity charges  

Fees charged by the regional transmission organization that oversees the electric grid to ensure there is an adequate supply of electricity available during high periods of energy usage. These fees are charged to all electricity consumers. Capacity charges are one of the  driving forces for rising electricity rates, as demand for electricity increases around the country. 

Meter read 

The monthly process in which your utility measures the amount of electricity used via your meter. 

With an ever-evolving energy industry coupled with increasing prices, now is the perfect time to be an informed consumer. Visit NOPEC’s Energy Savings Center for tips and resources to reduce your energy usage and help you save on energy costs.