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Glossary


Biomass
Fuel derived from plant and organic matter that is used to generate electricity. Landfill gas is one of the most widely used forms of biomass generation. At those facilities, gases from decomposing organic matter are collected and burned to generate electricity. While biomass-based generation is not entirely pollution free, it does not contribute to global warming and produces much less pollution than more traditional sources of electricity such as coal.

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Carbon Dioxide (CO2)
CO2 is naturally present in the Earth’s atmosphere and is a greenhouse gas considered to be the main anthropogenic contributor to global warming and climate change. Burning fossil fuels to produce electricity and drive our cars releases significant amounts of CO2 into the atmosphere.

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Carbon Footprint
Your carbon footprint is a representation of the effect you, or your business, have on the climate in terms of the total amount of CO2 emissions you produce. Activities that constitute a household’s carbon footprint include, but are not limited to, electricity usage, vehicle travel, airline travel and natural gas usage.

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Ceres
Ceres (pronounced “series”) is a national network of investors, environmental organizations and other public interest groups working with companies and investors to address sustainability challenges such as global climate change.Through our long time membership in the Ceres coalition, we publicly issue an annual sustainability report that discloses our corporate environmental policies and performance. To view our 2005 CERES report, click here. (pdf format)

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Climate Change
Climate change describes the ongoing transformation of the Earth’s average climate over time (from decades to millions of years). The majority of the world’s climate scientists have concluded that greenhouse gas (GHG) emissions resulting from human activities, such as transportation and electricity production, have a significant impact on the atmosphere and are having a discernible influence on global climate.

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Deregulation
The relaxation of government controls over business operation. In the retail electricity market, deregulation refers to ending the monopoly status of local utilities and allowing competitive power marketers to offer service to customers. In the markets that have deregulated to date, this has meant the incumbent utility retains control of transmitting and distributing power while power generation and retail service become open to competition.

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Distribution Charges
Part of the basic service charges on every customer's bill for delivering electricity from the electric distribution company to your home or business. Distribution charges are regulated by the Public Utility Commission.

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Distribution System
The local poles, wires, transformers, substations and other equipment used to deliver electricity to end-use consumers from high-voltage transmission lines. See “Grid”.

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Energy Efficiency
Refers to programs that are aimed at reducing the energy used by specific end-use devices and systems, typically without affecting the services provided. These programs reduce overall electricity consumption (reported in megawatt hours), often without explicit consideration for the timing of program-induced savings. Such savings are generally achieved by substituting technically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Examples include high-efficiency appliances, efficient lighting programs, high-efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives, and heat recovery systems.

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Energy Source
The primary source that provides the power that is converted to electricity through chemical, mechanical, or other means. Energy sources include fossil fuels, like coal, natural gas, petroleum and petroleum products, and renewable sources like water, wind, sunlight, geothermal, and biomass.

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ERCOT
The Electric Reliability Council of Texas. Responsible for system reliability and competitive wholesale market in Texas. ERCOT is also responsible for centralized power scheduling, transactions and evaluation of balanced schedules to ensure reliability.

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Facility
An existing or planned location or site at which prime movers, electric generators, and/or equipment for converting mechanical, chemical, and/or nuclear energy into electric energy are situated, or will be situated. A facility may contain more than one generator of either the same or different prime mover type. For a cogenerator, the facility includes the industrial or commercial process.

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Fossil Fuels
Fossil fuels include coal, oil, natural gas, petroleum, coke or other petroleum-based fuels. They’re called fossil fuels because they are formed from the decayed remains of prehistoric plants and animals. Fossil fuels are non-renewable energy sources which have a finite supply. All fossil fuels contain carbon, and when they are combusted to make electricity or power an airplane or automobile engine, they create carbon dioxide (CO2), a major greenhouse gas.

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Geothermal
Energy generated by heat stored beneath the Earth's surface.

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Generation Charges
The part of every customer's electricity bill that goes toward producing electricity. In deregulated electric markets, generation is competitively priced and is not regulated by the state. Generation charges are determined by suppliers, like Green Mountain Energy Company, or may be negotiated by entities such as aggregators and utility partners.

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Green Electricity
Electricity that is made from renewable resources like wind, water, geothermal, solar and biomass.

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Greenhouse Gases
A family of gases that trap radiant energy. Greenhouse gases include carbon dioxide, methane, nitrous oxide, water vapor, and halocarbons (i.e., chlorofluorocarbons). Human beings are increasing the amount of greenhouse gases in the air by burning fossil fuels. These increases affect our environment in the form of global warming and climate change.

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Greenhouse Effect
The increasing mean global surface temperature of the Earth caused by gases in the atmosphere (including carbon dioxide, methane, nitrous oxide, ozone, and chlorofluorocarbon). The greenhouse effect allows solar radiation to penetrate but absorbs the infrared radiation returning to space.

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Green Tag
See Renewable Energy Credit

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Grid
A network for the transmission of electricity throughout a region. The term is also used to refer to the layout of an electric distribution system.

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Hydro Power
The force or energy of moving water used to generate electricity.

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Kilowatt (kW)
A measure of instantaneous power. One kilowatt equals 1,000 watts. Ten 100-watt light bulbs, for example, have a total power rating of one kilowatt.

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Kilowatt Hour (kWh)
A quantity of electricity usage measured by your electric meter. One kilowatt hour equals 1,000 watt hours, which is the same as running a 100-watt light bulb for 10 hours, or ten 100-watt light bulbs for one hour.

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Megawatt (MW)
A term commonly used to rate the power output of electric power plants or to define large electric customer loads. A megawatt equals one thousand kilowatts, or a million watts. A large utility power plant typically has a power rating of 500 to 1,000 megawatts. One megawatt of power could supply 500 to 1,000 average homes, depending on the time of day.

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Meter Read
Recording the amount of electrical energy used by homes and businesses as displayed by an electricity meter. Electricity meters are typically mounted on the exterior walls of homes and businesses. Most record total kilowatt hours of energy used per month and are usually read monthly by utility employees.

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New Renewables
Any renewable energy source built (or repowered) after January 1, 1997. See Renewables.

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Nitrogen Oxides (NOx)
Formed when fossil fuels (notably oil, coal, and natural gas) and biomass (plant matter, wood chips, and landfill gas) are burned at high temperatures. NOx contributes to acid rain and smog. Health effects associated with smog include damage to lung tissue, increased asthma attacks, and respiratory illness in children with frequent high-level exposure. When NOx causes acid rain, it contributes to pollution of lakes and coastal waters and the degradation of sensitive forests. This pollution is destructive to fish and other animal life. Making electricity is responsible for 25% of all the NOx pollution in the U.S., over 6 million tons each year.

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Off-Peak/On-Peak
Blocks of time when energy demand is relatively lower (off-peak) or higher (on-peak).

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Public Utility Commission (PUC)
The state regulatory agency that provides oversight, policy guidance and direction to electric public utilities. The "PUC" designation may also be represented by other acronyms depending on the state, for example: PUCT ( in Texas).

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Renewables
Energy sources that are either inexhaustible (solar, wind) or replenished over a short period of time (hydro, biomass, geothermal). Most renewable energy ultimately comes from the sun - indirectly in the case of wind, water, and biomass; directly in the case of solar (PV) generation. Natural gas and coal, for example, are not renewables because their use consumes gas and coal reserves at a much quicker rate than they can be replenished.

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Renewable Energy Credits (RECs), Green Tags or Tradable Renewable Certificates (TRCs)
A commodity that represent the environmental benefits of generating electricity from renewable generation sources. One REC is created each time a megawatt hour of energy from a renewable facility is generated . RECs represent how and when a unit of electricity was made at a particular generation facility and the environmental benefits (or attributes) that result from making that electricity. For example, basic attributes would be: type of generation (e.g. wind), location, , date of actual generation, emissions per MWh, if any. Environmental attributes include the emissions of NOx, SOx, CO2, mercury, and particulate matter that are avoided as a result of the wind (or other renewable) generation from that generating facility. RECs can be sold and traded for voluntary and regulatory purposes and the owner of the REC can legally claim to have purchased renewable energy.

Purchasing RECs helps ensure that more electricity is generated from renewable energy sources, which reduces the amount of electricity that has to be generated from polluting fossil fuel generation. As a result, RECs may be used to offset CO2 emissions associated with electricity usage and other sources. In addition to the carbon impact, purchasing RECs also supports renewable energy and encourages more renewable development.

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Retail Electric Provider (REP)
A company licensed to provide electric generation products and services to end-use customers. Green Mountain Energy Company is a REP licensed by the Public Utility Commission of Texas.

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Solar
Energy from the sun. Sunlight can be converted to electricity directly, as in the case of photovoltaic (PV) applications or indirectly as in the case of solar thermal applications. According to the U.S. National Renewable Energy Laboratories (NREL), the amount of energy from the sun that falls to the earth in one day could supply the entire world's energy needs for 27 years.

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Sulfur Dioxide (SO2)
Formed by combustion of fuels containing sulfur--primarily coal and oil. Major health effects associated with SO2 include asthma, respiratory illness, and aggravation of existing cardiovascular disease. SO2 combines with water and oxygen in the atmosphere to form acid rain, which raises the acid levels of lakes and streams, affecting the ability of fish and some amphibians to survive. It also damages sensitive forests and ecosystems, particularly in the eastern part of the U.S. It also accelerates the decay of buildings. Making electricity is responsible for two-thirds of all the SO2 pollution in the U.S., 13 million tons each year.

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System Power Mix
The average mix of electric power plants and other energy serving customers in a region. In the U.S., coal, other fossil fuels, and nuclear generation are the most-used sources for system power.

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Transmission and Distribution Service Provider (TDSP)
The company that owns the power lines, poles, meters and other equipment necessary to deliver electricity to the customer. The TDSP also reads the meter and reports the customer’s usage to the retail electric provider. ,Also sometimes referred to as a Transmission and Distribution Utility (TDU), Utility Distribution Company (UDC), Electric Distribution Company (EDC) or Local Distribution Company (LDC).

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Transmission Charges
Part of the basic service charges on every customer's bill for transporting electricity from the source of supply to the electric distribution company. The Federal Energy Regulatory Commission regulates retail transmission prices and services.

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Transmission Lines
Interconnected electric lines which move high voltage electricity from a generation facility ultimately to the distribution lines of an electric distribution company. See “Grid”.

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Wind power
The conversion of wind energy into more useful forms, usually electricity, using wind turbines.

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