Glossary

The process of reducing pollution and its negative impacts on the environment.

An integrated system of smart meters, communications networks, and data management systems that enables two-way communication between utilities and customers.

The total amount of electricity utility customers consume within a period.

A color-coded scale for reporting daily air quality.

Maximum allowed levels of air pollutants set by the U.S. EPA to protect public health.

The location of the Alabama Energy Office.

The state agency responsible for enforcing environmental laws and regulations.

See, Investor-Owned Utility (IOU).

Type of current in which the flow of electric charge reverses direction frequently, allowing the voltage to change.

Renewable energy derived from non-fossil fuels (see, Renewable Energy).

A vehicle that runs on alternative fuels. This includes FFVs, EVs, as well as the conversion of traditional fuel vehicles to run on alternative fuels.

A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both

A nonprofit organization focused on promoting energy efficiency as a way to reduce energy waste, save money, and protect the environment.

Professional association seeking to advance heating, ventilation, air conditioning and refrigeration (HVAC&R) systems design and construction.

A unit of electrical current calculated in coulombs per second.

A national standardized tool for assessing the physical and structural energy efficiency of commercial and multifamily residential buildings

An assessment of a home's or building's energy use.

A system of electric meters from which data can be gathered on a monthly basis without requiring a physical reading of the meter.

The incremental cost that a utility avoids by purchasing power from a qualifying facility (QF) rather than generating power itself or purchasing it from another source.

The cost utilities would otherwise incur to produce the power obtained from qualifying facilities (QFs).

An entity responsible for ensuring that electricity supply matches demand in real-time, maintaining system frequency, and managing the flow of electricity between adjacent balancing authorities.

The continuous level of electricity demand - often met with nuclear, coal, and some gas plants - that take time to come online and are inexpensive to run for long periods of time.

A vehicle powered solely through a battery and electric powertrain that is capable of highway speeds (i.e., not golf carts or personal recreational vehicles)

Process of replacing direct fossil fuel use (e.g., propane, heating oil, gasoline) with electricity in a way that reduces overall emissions and energy costs

Offers submitted by electric buyers and sellers to determine the price of energy in the market (does not include individual consumers).

Energy derived from the combustion of renewable organic material from plants, animals, and their byproducts, such as methane.

(see, IIJA)

Acronym for Black, Indigenous, and other people of color. The BIPOC community has been historically underrepresented in the clean energy industry; including them in the energy conversation is critical for cultivating an equitable, diverse and inclusive clean energy community.

A distributed, decentralized open network that allows different parties to verify transactions with one another. In the clean energy industry, blockchain technology creates a local renewable energy market that allows extra energy to be sold through peer-to-peer trading without the middle man.

Attribute that describes how well the building functions in light of its architecture, design, and construction. This includes qualities like energy efficiency and indoor air quality.

The nation’s largest dataset of information about the energy-related characteristics of commercial and residential buildings

A percentage calculated by dividing the actual generation output by the maximum output if the generation unit were running at full-power.

Fee paid by a utility customer - usually a large industrial or commercial user - to reserve a specific amount of capacity on an energy system, regardless of how much they actually use.

The relative shares of a utility’s capital that come from debt and equity. Since equity is more expensive than debt, a utility’s capital structure can impact its rate of return.

A tax levied on businesses and consumers for the amount of greenhouse gas emissions they emit, which serves as an incentive to reduce carbon emissions (see, Cap-and-Trade).

A legal authorization issued by a government agency - usually a public utility commission - that allows a company to build or operate a public utility or infrastructure project.

Energy derived from renewable, zero-emissions sources (“renewables”), as well as energy saved through energy efficiency measures (see, Renewable Energy).

U.S.-based membership organization that brings together major energy consumers—such as corporations, industrial firms, cities, universities, service providers, and NGOs—to accelerate clean energy procurement and influence policy toward a carbon‑free electricity system.

A regulated category of information defined primarily by FERC covering sensitive engineering, design, or vulnerability information about existing or proposed bulk‑power system infrastructure.

Use of waste heat to generate electricity.

A natural gas generator where a combustion turbine is paired with a steam turbine for greater efficiency.

The use of a heat engine or power station to generate electricity and useful heat at the same time.

A natural gas generator that heats air to spin an electric generator.

A solar power plant whose electricity is shared by subscribers who may not necessarily be located near the plant itself (see, Customer-Sited Solar).

A process by which heat energy is transmitted through collisions between neighboring atoms or molecules.

A process of heat transfer by the bulk movement of molecules within fluids such as gases and liquids

An electric cooperative (or electric co-op) is a nonprofit, member-owned utility that provides electricity to its members, typically in rural or underserved areas.

The regulated tariff that covers justified costs of an electric utility’s operation (costs that are necessary and unavoidable) to provide the regulated service at a predefined level of quality.

A unit of electrical charge equivalent to 1 ampere-second.

Utility pricing that spikes dramatically when qualifying critical events occur.

Electricity rider that provides customers a bill credit for decreasing energy use by a certain amount during critical peak periods.

Reduction in the output of a generating unit from what it could otherwise produce given available resources.

Programs that allow electricity customers to select an electric supplier rather than being required to purchase electricity from their local electric utility, which introduces competition for retail electricity prices

Solar projects installed on residential or commercial properties (< 2MW generating capacity) with the intent of supplying or off-setting a portion of the customer's energy demand (see, Utility-Scale Solar).

Direct current fast charging stations that offer significantly faster charging time compared to Level 1 or Level 2 charging stations

The maximum amount of energy that is being consumed at a given time.

Charges to larger utility consumers that reflect the cost of additional investments needed to meet their load that are based on the peak demand of these customers during a billing period. Some utilities may offer demand charge options for billing residential customers.

An option for customers to reduce their demand charge by lowering energy use at peak periods.

Activities, programs, or initiatives undertaken by an electric power supplier or its customers to shift the timing of electricity use from peak to non-peak demand periods.

The United States federal government agency concerning energy policy and safety regarding nuclear material.

A method that calculates the difference in the utility’s overall generation cost with and without a qualifying facility (QF) capacity.

Type of current in which electrical charge flows in one direction.

Small energy resources that are able to be located close to their point of consumption (e.g. rooftop solar panels).

Power generation located close to the load they serve to produce energy on-site or at the point of consumption.

The last stage of electric power delivery carrying electricity from the transmission system to individual customers.

The method of organizing proceedings before the Federal Energy Regulatory Commission (FERC) and the Alabama Public Service Commission (PSC).

A vehicle that runs fully or partially on electricity. This includes BEVs, PHEVs, and HEVs (see, Alternative Fuel Vehicle).

Charging stations or docks that supply electricity to an electric vehicle. Level 1 EVSE use the standard household outlet with a normal 120V connection, whereas Level 2 EVSE use a higher-output 240V power source.

Auctions that are used to coordinate the production of electricity on a day-to-day basis. In an energy market, electric suppliers offer to sell the electricity that their power plants generate for a particular bid price, while load-serving entities (the demand side) bid for that electricity in order to meet their customers’ energy demand

An extra charge or credit added to a customer’s electric bill to cover specific costs or programs that aren’t included in the base electricity rate. Depending on your utility, you may not see these extra charges (riders) broken down in your bill.

An industry or company’s greenhouse gas emission allowance issued by the government.

The percentage of total household income spent on energy bills. A household with high energy burden pays a disproportionate amount of their monthly budget on energy costs.

The rate power suppliers charge customers specifically for their kWh electricity usage over a billing period.

Using a wide range of sources to meet power and fuel needs. This includes drawing from various natural, technological, and renewable options so that no single supply method is overly relied upon.

Technologies (including passive solar), products, and services that reduce the amount of energy required for buildings, processes, or tasks.

A generic term used to refer to any home mortgage for which the underwriting guidelines have been relaxed for EE features

The power to choose where your energy comes from, how it's produced, and how it's used.

An agency within the United States Department of Energy (DOE) that collects data on all things related to energy, from gas prices to the capacity factors of power plants.

A household struggles to meet its basic energy needs - like heating, cooling, and electricity - because of high costs, low income, or inadequate housing.

The array of primary energy sources used in a given area to meet its energy consumption needs.

U.S. bill that provides tax incentives and loan guarantees to allow alternative energy sources and innovative technologies to be more competitive in electricity markets.

A company that provides comprehensive energy solutions to its customers, including auditing, redesigning and implementing changes to the ways the customer consumes energy, the main goal being improved efficiency.

A program run by the U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE) that promotes energy efficiency.

The process of capturing power or heat when it is available and saving it for use at a later time. This can involve technologies like batteries, pumped hydro systems, or thermal tanks that hold electricity, heat, or other forms of usable output until there is a demand. The goal is to improve reliability, balance supply and demand, and support systems during peak usage or interruptions.

A formal analysis used to determine whether a proposed project or action will have significant environmental impacts.

A detailed, comprehensive report that evaluates the potential environmental effects of a proposed federal project or action—and explores alternatives to avoid or minimize those impacts. See, Environmental Assessment.

The United States federal government agency with offices concerning energy policy regulations.

A scenario where each individual or group of people is given the same resources or opportunities

A scenario where resources and opportunities are exacted to individuals to reach an equal outcome and takes cognisance of individual circumstances

The federal regulatory body with oversight of utilities engaging in interstate commerce. The agency is designed to protect the public and energy customers, the wholesale of electricity, and the reliability of the electric grid.

This is a charge that some customers have to pay before their energy meter starts running.

Utility pricing that involve a set rate per kWh

The mechanism where a company or utility recovers its fuel expenses, often through adjustments to customer bills or surcharges

Proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes.

The maximum amount of electricity (as measured in MW) a generator can produce when running at full blast.

Use of thermal energy (heat) stored in the Earth to generate electricity.

Gases - commonly fossil fuel emissions - that trap heat in the Earth's atmosphere; including carbon dioxide, methane, nitrous oxide, and fluorinated gases.

The layout of an electrical distribution system; a system of interconnected power lines and generators.

Hardware and software solutions designed to increase the capacity, efficiency, and reliability of existing power grids without the need for extensive infrastructure upgrades.

Central heating and cooling systems that increase efficiency by transferring heat to or from the ground or a body of water.

A formal meeting or legal proceeding where evidence, testimony, or public comments are presented on specific regulatory or legislative matters.

The nationally recognized index and industry standard by which a home's energy efficiency is measured.

Provides home owners, buyers, and renters directly comparable and credible information about a home's energy use.

The system responsible for heating and cooling your home and includes products like furnaces, air conditioners, heat pumps as well as ductwork, thermostats, and other home comfort controls

A low-emission vehicle that uses an electric motor to assist gas-powered engines. All energy comes from gasoline.

Technologies or devices that harness the force of falling or flowing water, including marine waves, for useful purposes such as generating electricity or creating mechanical force.

The utility with the territorial rights to a particular location.

An entity, which is not a public utility, but which owns facilities to generate electric power for sale to utilities and end users.

A not-for-profit organization that manages the electricity transmission grid for a specific region, ensuring reliable and cost-effective electricity delivery. There is no ISO in Alabama.

The condition and cleanliness of the air within and around buildings and structures. Dust, chemicals, mold, and ventilation can all impact IAQ.

Long range plan that utilities do to determine how to meet grid/system needs 20-40 years into the future.

The process by which an independent power producer connects to the electric grid operated by an incumbent electric supplier.

The order in which qualifying facilities (QFs) are interconnected to the electric grid by incumbent utilities.

The portion of power demand that occurs regularly during predictable periods—typically during daytime or business hours—but not 24/7. It requires power plants that can ramp up and down more easily than base load plants but are more efficient than those used only during peak times.

An engine that fuels a vehicle via combustion of a power source, such as gasoline, diesel, biofuels, propane or natural gas.

A federal tax credit that reduces a taxpayer's liability based on a percentage of eligible investment costs. It's designed to incentivize investments in specific areas, such as renewable energy.

A private company - like Alabama Power - that provides electricity or other utility services to customers and is owned by shareholders who invest in the business to earn a profit.

The ability of an electric generator to operate independently of the grid.

A unit of work or energy equivalent to 1 watt-second.

1,000 watts, where a watt is a unit of electrical power calculated in joules per second.

A unit of energy that is typically used to measure the amount of electricity consumed by a customer over a billing period. 1,000 watt-hours equal 1 kWh.

The most widely used green building rating system that certifies a building for using less energy and water.

A metric that calculates the cost of building and operating a power plant over an assumed lifetime divided by energy production.

It's the break-even cost to store and then discharge electricity over the lifetime of an energy storage system. It helps compare the cost-effectiveness of different storage technologies.

Low Income Energy Assistance Program.

Low- to Moderate-Income

Amount of electricity demand on the grid at any given time.

Industry term for an electric utility.

Utility customer groups (residential, commercial/general, industrial) based on similar characteristics, such as quantity of power needed, voltage requirements, and accounting preferences.

The process of measuring how much energy or water is actually saved by a project, such as installing energy-efficient lighting or equipment.

1,000,000 watts, where a watt is a unit of electrical power calculated in joules per second.

Smaller, localized electricity grids that have the ability to disconnect and operate independently from outside resources. The independence of a micro grid can be permanent or achieved temporarily through a switch.

An electric supplier owned and operated by a city or town. There are 36 in Alabama.

The federal act adopted in response to the energy crises of the 1970s, which includes the Public Utility Regulatory Policies Act (PURPA).

A federal law enacted in 1970 that requires federal agencies to assess the environmental effects of their proposed actions before making decisions.

Billing mechanism that allows the unused electricity generated by customer owned systems to be sold back to the utility in exchange for a credit on their utility bill.

Financing that allows the utility to recoup the cost of a customer’s energy equipment purchase by adding it back to the customer’s utility bill.

Cost of running and upkeep for a component of a system.

The time of day when the most energy is being used from the electrical grid.

The historical maximum level of demand on an electrical system.

A system where a utility’s profits are tied to how well it meets specific goals - like improving reliability, cutting costs, or reducing emissions - instead of just how much electricity or gas it sells. It shifts the focus from simply building infrastructure to delivering better service and outcomes for customers.

Conversion of light energy into electricity via semiconducting materials present in solar panels.

A vehicle that combines a conventional gasoline powered engine with a battery that can be recharged, allowing it to operate as an electric vehicle

A contract between an electric generating facility and an electric purchaser, often a utility.

Energy sources consisting of unconverted or original fuels that are directly harnessed or mined. These include fossil fuels, nuclear energy, and renewable sources of energy.

In Alabama, the three-person, elected state agency that regulates privately owned utilities, such as Alabama Power, natural gas, and telecommunications companies.

A private company or city-run organization/cooperative that provides essential services—like electricity, water, natural gas, or phone service—to the public. These services are usually provided under government oversight to ensure fair prices and reliable access.

Federal energy legislation of the National Energy Policy Act which, among other policies, requires utilities to purchase electricity from most small power producers at an avoided cost rate. The purpose of PURPA was to encourage conservation, reliability, and efficiency in the delivery and generation of electricity, and to do so with equitable retail rates for electric consumers.

A small power production facility (80 MW or less) or cogeneration facility that meets status requirements under PURPA. A QF is relieved of certain regulatory burdens and has the right to sell energy to, purchase certain services from, and interconnect with the utility.

Measures a materials ability to resist heat transfer, aka thermal resistance. Commonly used in insulation.

Research and development.

Process by which heat energy is transferred via electromagnetic waves.

The framework utilities regulators use to set prices for electricity; it impacts consumption and investment decisions across all resources such as energy efficiency, demand response, and traditional and distributed generation.

The percentage of profit an electric utility is allowed to earn on its investments—like power plants, equipment, and infrastructure. It's set by regulators (like the Alabama Public Service Commission) to help the utility cover costs and earn a fair return for its investors.

The type of electricity that helps keep the electric system stable and supports the flow of usable (real) power. It doesn’t do actual work like lighting a bulb but is needed to maintain voltage levels and keep motors and other equipment running properly. See, Volt/VAR Optimization (VVO).

Price each customer pays for a unit of electricity (based on both quantity and time).

Reused energy or heat (usually as a byproduct of generation) that would otherwise be wasted.

An organization responsible for moving electricity through multi-state areas. Regional transmission organizations were formed pursuant to an order from the Federal Energy Regulatory Commission (FERC) in 1999. While Alabama does not have a RTO/ISO, SERTP exists for regional transmission planning purposes.

Energy derived from natural processes that are regenerative over short periods of time and cannot be depleted (see, Sustainable Energy). The most common renewable energy resources are biomass, geothermal, hydropower, solar, and wind.

Policies that require or encourage electricity suppliers to provide their customers with a stated minimum share of electricity from eligible renewable resources

The electric generating capacity in excess of peak load constructed to ensure service when demand exceeds historical levels of maximum demand.

An electrical system’s ability to maintain critical infrastructure and services despite adverse events and chronic stressors. Most renewable energy systems do not require inputs of fuel and therefore supply will not be disrupted by adverse conditions affecting roads or pipelines.

When an electric utility changes where its cleaner or dirtier energy goes—on paper—to make it look like it's reducing emissions, without actually cutting total pollution.

The per kWh rate that a customer is charged for the electricity they use.

Modifications to existing residential, commercial, or industrial buildings that may improve energy efficiency or decrease energy demand.

The return that must be offered to investors in order to attract equity. Unlike the cost of debt, there are multiple methods for calculating return on equity, and thus it is frequently litigated in rate cases.

Electricity-generating panels mounted on the rooftop of residential or commercial buildings.

The ratio of the cooling output of an air conditioner over a typical cooling season, divided by the energy it uses in watt-hours

Energy sources generated or converted from primary energy sources. These include electricity, hydrogen, and heat (see, Primary Energy Sources).

When a bond is issued to recover the costs of an uneconomic asset. Ratepayers repay the bond at a low-interest rate, instead of paying for the uneconomic asset at the utility’s higher rate of return, which leads to savings for ratepayers.

The geographic region, set by state law, where a specific utility—like Alabama Power, an electric cooperative, or a municipal utility—has the exclusive right and responsibility to provide electricity to homes and businesses.

A compact nuclear power reactor, typically producing under 300 megawatts of electricity, that is factory-built in modules for easy transport, installation, and scalability.

Technologies (power meters, voltage sensors, fault detectors, and more) characterized by an ability for two-way communication between the device and power supplier to help automate and modernize the electricity grid.

Technologies and products that harness sunlight to produce either heat or electricity.

A device that captures energy from sunlight and turns it into electricity.

A platform that allows utilities across the Southeast, including Alabama Power and TVA, to buy and sell excess electricity in 15-minute intervals. It improves efficiency, lowers costs, and supports the integration of renewable energy by enabling quicker, more flexible energy transfers across the region.

A regional collaborative of utilities in the Southeast to plan transmission and comply with FERC order 1000. See, RTO/ISO.

A uniform power purchase agreement (PPA) approved by a state regulatory authority under which a qualifying facility (QF) may opt to sell its electricity to a utility at avoided cost pursuant to PURPA instead of entering into a negotiated contract.

Factory-built insulated wall assemblies that ensure full alignment of insulation and air barriers.

Electricity rider for large customers that require the utility to build and hold spare generation capacity in reserve (see Electricty Rider).

Electric production from a utility that exceeds the demand of its service area.

Energy sources that meet the energy demands of today without compromising its availability in the future (see, Renewable Energy).

A service and billing option offered by a utility. Utilities may offer different rate schedules to different customer classes and for different electric uses.

A dollar-for-dollar reduction in the amount of income tax you would otherwise owe.

A federally-owned corporation that generates and sells electricity in parts of the southeastern U.S., including northern Alabama. It also helps manage natural resources and supports economic development in the region.

Electricity sales from an independent power producer directly to a consumer.

Electricity rates that vary over time based on factors such as demand (see, Fixed Rates).

Utility pricing that changes according to time of day (peak vs. off-peak) and season during which energy is consumed. Under this plan, electric bills are be determined by how much energy is used and when it is used (see, Fixed Rates).

Generated electric power is delivered to customers over transmission and distribution lines. Transmission lines carry electricity over long distances from a generating plant to an electrical substation.

Strategies that reduce transportation-related air pollution, greenhouse gas emissions, and fuel use by reducing vehicle miles traveled and improving roadway operations

Measures the rate at which heat flows through a building assembly or material, aka thermal transmittance. Commonly used for windows.

A fundamental principle of utility regulation that requires energy assets be used and useful to ratepayers before they are asked to pay the costs associated with them.

A utility is a company or organization that provides essential services such as electricity, water, natural gas, or sewage to homes and businesses. See, Public Utility.

Solar facilities with a total generating capacity of more than 2 megawatts developed with the primary goal of supplying a utility with energy (see, Customer-Sited Solar).

An arrangement of the energy market where a utility, such as Alabama Power, owns all levels of electricity services–generation, transmission, and distribution–within a geographic area. A truly competitive market is one in which electricity generation and management are unbundled.

A network of decentralized energy resources—such as solar panels, wind turbines, batteries, and demand response systems—that are digitally connected and managed to function like a single power plant.

A unit of electrical pressure or potential calculated in joules per coulomb.

A system that helps electric utilities manage voltage and reactive power on the power grid to make electricity delivery more efficient and reduce energy waste (see, Reactive Power). By adjusting voltage levels and controlling power flow, VVO helps keep the grid stable and can lower customers’ energy costs.

A unit of electrical power calculated in joules per second.

A unit of energy equivalent to 1 watt of power generated over an hour.

The process of making a building more resistant to the effects of changing weather and increasing its energy efficiency.

Program that reduces energy costs for low-income households by increasing the energy efficiency of their homes, while ensuring their health and safety.

Giving an energy distributor the option to buy power from a variety of power producers while the producers compete to sell their power to different distribution utilities.

Technologies and products related to the harnessing of wind energy to produce electricity or mechanical force.

Areas that appear most suitable for commercial wind energy activities, while presenting the fewest apparent environmental and user conflicts

A machine with large blades that spin when the wind blows, converting the wind’s energy into mechanical energy. This mechanical energy is then turned into electricity by a generator inside the turbine.

A fully electric plug-in or plug-in-hybrid electric vehicle; other forms of zero emissions vehicle will be considered as technology becomes more widespread and readily adopted