Direct Energy Business
Market Data For Your Home Contact Us

Electricity & Natural Gas Reference Guide for the Busy Business Owner

read | Share:

As a small business owner, it’s possible you’re juggling everything from hiring (and firing) employees – to cleaning the bathrooms. So, we understand that electricity and natural gas might not be top of mind. But when it comes time to review your electricity/natural gas bill or contract – there are a few key terms that are helpful to understand.  

Kilowatt Hour:  A kilowatt hour is the standard unit to measure electricity. Your bill is determined by your kilowatt-hour usage. 

Supply: This is the generation of electricity. If you are located in a deregulated market, you have a choice about where to buy your electricity supply.

Transmission: This is the transportation of the large electricity supply from its source (a power plant, for example) to the receiving station of the utility. This is still regulated to ensure reliable delivery.

Power Sources: The different types of fuels that can be used to produce electricity. Those fuels include: fossil fuels (oil, coal and natural gas) and renewable energy resources like wind and solar.

Generation:  The process of using other types of fuels (such as fossil fuels, nuclear or renewables) for electricity.

Renewable Power/Energy Sources: Power that is produced with environmentally-clean power sources such as solar, wind, and hydro.

PUC (Public Utility Commission): The state agency that regulates electric utilities and competitive power supply sales.

Restructuring/Deregulation: Opening a market, whose prices and practices were formerly fully regulated by government, to competition.

For more commonly used terms and general information about how energy is billed, etc., we’ve created a quick reference guide that you can download and print for FREE.


Posted: August 31, 2018