Midwest Energy, Inc.
Making Energy Work For You
Glossary of Terms
- Billing Demand
-
For electric meters, the demand level used to calculate bills (kW,
kVA, or Horsepower). It may
differ from the actual monthly demand reading as provided in the rate schedule.
If the billing demand is zero, as with residential accounts, it means there is no
separate demand charge.
- BTU (British Thermal Units)
-
A BTU is the amount of thermal energy required to raise the temperature of one (1)
pound of water by one (1) degree Fahrenheit. An MMBTU is equal to one (1) million
BTU's.
- Cost of Gas (COG)
-
The total of actual wholesale gas costs, upstream interstate pipeline charges, and
adjustments to true up prior period over-collections or under-collections, supplier
refunds, etc. The intent of the COG is to flow through exactly the amount paid for
gas in the wholesale markets over time. However, the effect of the adjustments usually
results in a current month cost that is above or below the actual wholesale market.
- Customer Charge
-
A fixed amount to be paid without regard to instantaneous demand or total energy
used in the month. In theory the customer charge should cover costs directly related
to serving a customer regardless of sales volume. Some costs included are meter
costs, meter reading, yard lines and pressure regulators (for gas), transformers
and service drops (for electric), maintenance of meters, regulators, transformers
and service drops, billing, customer service, etc. In reality, the customer charge
does not cover all of these costs, so the remainder is included in the delivery
charge.
- Distribution
-
A portion of electric delivery charges for the local movement of power. Midwest
Energy includes costs of its lines and substations that operate below 34,000 volts
in this category. Other costs of operating the electric utility are included here
because many customer specific fixed costs are not fully covered by the "customer
charge". In this sense, the term distribution really means "distribution and local
service".
- Electric Delivery Charges
-
Midwest Energy charges for moving electrical power from the point of connection
on the Midwest Energy grid to the customer's premise as well as ancillary charges
associated with power delivery. These charges include both the bulk, high voltage
movement of power (transmission) as well as the local delivery (distribution).
- Energy Charge
-
The expected cost of wholesale power purchased by Midwest Energy for wholesale power
suppliers on behalf of its customers. When this charge is different than the average
actual cost for power paid to the wholesale suppliers, the Energy Cost Adjustment
acts as a correction factor to ensure that Midwest Energy collects no more than
it actually pays for wholesale power over time.
- Energy Cost Adjustment (ECA)
-
The difference between the actual costs for wholesale power purchased by Midwest
Energy on behalf of its customers and the Production Charges in rates. The ECA includes
any true-up amounts from prior periods if Midwest collected either more or less
than it actually paid for wholesale power. The purpose of the ECA is to ensure that
Midwest Energy collects no more and no less than the actual cost of wholesale power
over time. However, the effect of the ECA in any given month is to make the total
Production Charges either slightly more or slightly less than actual wholesale power
costs. In addition, the ECA will include any costs for fuel used to power Midwest
Energy-owned generation plants.
- Gas Open Access
-
A situation where natural gas producers (or marketers) are allowed to sell their
production directly to retail customers while depending on the local utility to
provide the actual delivery of the gas. Gas Open Access is not currently permitted
in Kansas for residential customers.
- Horsepower Charge
-
An instantaneous measure of electric demand equal to 0.8285
kW. Midwest Energy uses this measurement
only for electric irrigation customers.
- Kilovolt-ampere (kVA)
-
An instantaneous measure of electric demand equal to one thousand volt-amperes.
When voltage and amperage are perfectly in phase, kVA demand will equal kW demand.
Electric loads that generate a magnetic field (motors, lighting ballasts, etc.)
cause the current to lag voltage, lowering the power factor and increasing amp draw
to accomplish the same work. Large commercial, oil field and industrial customers
can correct this problem by installing capacitors.
- Kilowatt (kW)
-
One thousand watts, measured instantaneously. (See definition of "Watt".) When Midwest
Energy bills on the basis of electric demand, it is the average demand over a 15-minute
period. In many cases, Midwest Energy measures demand in slightly different units,
called kVA (kilovolt-ampere). In addition to demand, kVA billing includes consideration
of the customer's power factor.
- Kilowatt-hour (kWh)
-
The basic unit of electric energy equivalent to one kilowatt used for one hour.
For example, ten 100 watt light bulbs will use one kWh in one hour (10 bulbs x 100
watts x one hour = 1000 watt-hours, or one kWh). When used in a resistance type
appliance such as a toaster or portable heater, one kWh is equal to 3,413 BTUs.
- Local Generation
-
Electricity generation charges associated with the physical upkeep and depreciation
of generation facilities owned by Midwest Energy. The local generation charge does
not include the cost of the fuel used to run these plants. Fuel costs are included
in the Energy Cost Adjustment (ECA).
- Meter Multiplier
-
For electric meters, this is the ratio of the customer's total load to the amount
of the load flowing through the meter. Residential, farm and small commercial meters
usually have a multiplier of one. That means all of the electricity used flows through
the meter. The amount of electricity used by large commercial, oil field and industrial
accounts is too large to flow through the meter without destroying it. For these,
Midwest Energy installs devices that cause a known percentage of the actual load
to flow through the meter. The meter multiplier times the change in beginning and
ending meter readings is equal to the actual energy use.
- Off-Peak Hours
-
All the hours of the year other than those that are on-peak.
- On-Peak Hours
-
The hours during the year when demand for electricity is particularly high for Midwest
Energy. These hours are from 2:00 p.m. to 9:00 p.m., Monday through Saturday during
the months of June - August.
- Power Factor
-
The fraction of power actually used by a customer's electrical equipment compared
to the total apparent power supplied, usually expressed as a percentage. A power
factor indicates how far a customer's electrical equipment causes the electric current
delivered at the customer's site to be out of phase with the voltage.
- Rate Code
-
Refers to the particular Kansas Corporation Commission approved rate schedule from
which charges are based. For a copy of the particular rate schedule identified by
the rate code, see the electric and natural gas rate schedules in the Energy Choices
section of this web site.
- Retail Wheeling
-
A situation where electric energy producers (or marketers) are allowed to sell their
production directly to retail customers while depending on the local utility to
provide the actual delivery of the energy. Retail Wheeling is not currently permitted
in Kansas.
- Therm
-
The basic unit of natural gas consumption that measures the quantity of gas energy
flowing through the pipes. One (1) therm is equal to 100,000 BTU's (British Thermal
Units); ten (10) therms equal one (1) MMBtu or one million BTU.
- Transmission
-
A portion of electric delivery charges for the bulk movement of power. Midwest Energy
includes costs of its lines and substations that operate at 34,000 volts and above
in this category.
- Transport or Transportation Only Service
-
Natural gas service where the customer arranges for natural gas to be delivered
to the Midwest Energy system by a gas marketer on the customer's behalf. Midwest
Energy then delivers the gas to the customer without ever taking ownership of the
gas. Transportation service is not available for Midwest Energy's residential customers
at this time.
- Unbundling
-
The process of separating the total cost of electric or natural gas service into
its functional parts. In the electric industry, this means separating the cost of
electricity into (1) Production (generation), (2) Transmission (bulk movement of
power), and (3) Distribution (local delivery, metering and billing services). Transmission
and Distribution together are often referred to as "delivery". In the gas industry,
unbundling the gas service separates costs for the gas (1) production (the natural
gas commodity), (2) Transmission (bulk movement of gas from one region to another
via interstate pipelines), and Distribution (the local delivery, metering and billing).
For billing purposes, Midwest Energy combines production costs and upstream interstate
pipeline costs into the Purchased Gas Adjustment.
- Usage Factor
-
For gas meters, this is the result of using values for service pressure at the meter
outlet, local atmospheric pressure, and BTU content of the fuel, to convert the
meter reading from a volumetric measurement to therms. Billing for thermal content
instead of volumes is important because there are periodic changes in the heat content
of gas arriving from upstream interstate pipelines. Call your local Midwest Energy
office for a flyer that explains the usage factor equation in detail.
- Watt
-
The rate of electric energy transfer equal to a current of one amp flowing at one
volt. This is an instantaneous measure, similar to vehicle speed measured in miles
per hour or water flow measured in gallons per minute. Watts are exactly equal to
volts times amps if the current and voltage are perfectly in phase. (See definitions
of kilovolt-ampere and power factor.)
