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GLOSSARY OF TERMS

The terms below were provided several years ago by the Pennsylvania Public Utility Commission (PUC) to make highly technical terms more clear. Some definitions do not include full technical details.

Actual Reading - The reading from your gas meter.

Adjusted or Corrected Reading - An amount shown on the bill to correct too much or not enough use from a prior reading.

Aggregation - A group that buys natural gas to obtain lower prices for a number of consumers.

Aggregator or Market Aggregator - A natural gas supplier that plans for natural gas supply services to a group of customers in a single buying unit.

Alternate Fuel Capability (Alternate Energy Capability) - Meeting energy needs with an energy source other than natural gas.

Balancing - The amount of natural gas a Natural Gas Distribution Company (NGDC) receives for delivery to a customer or customer group and the amount of gas that customer or group actually uses.

Basic Services - Services necessary for the physical delivery of natural gas to a retail customer, consisting of natural gas distribution services and natural gas supply services.

BTU - British Thermal Unit is the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.

Bundled pricing - Two or more services offered at a single price.

Burner Tip - The point at which natural gas is used, such as a furnace, water heater or range.

Capacity - The amount of natural gas transported within a specific period of time. The physical limits of a gas transportation system determine capacity. On the interstate transportation system, physical capacity is often divided among several parties, each party holding a contract for a specific quantity.

Ccf - Equals 100 cubic feet of gas. This is a measure of gas usage.

Chapter 56 - The PUC regulations that govern metering, billing and collections for residential gas and electric service.

City Gate - The point where interstate pipelines deliver gas into an NGDC’s facilities.

Commodity - Natural gas sold either by volume or heating value.

Commodity Charges - The charges for basic gas supply service.

Consumer Contract - A written statement of the terms of service between a customer and a natural gas supplier.

Customer Assistance Programs (CAPS) - A payment program for low income people who have trouble paying their bills. This payment program is set up between a utility company and the customer. Customers who qualify for CAP will benefit from a rate reduction based on ability to pay. When an agreement is made the customer must make regular monthly payments based on their new payment plan.

Customer Charge - A monthly charge to cover NGDC costs to maintain the gas lines, and provide meter reading and billing.

Customer Choice - Customers and sellers can deal directly with each other for natural gas supplies, which are transported through NGDC’s pipes to the consumer.

Customer Classes - The classes of natural gas customers are residential, commercial and industrial.

Customer Reading - An actual meter reading made by the customer and given to the NGDC.

Dekatherm (DTH) - A measure of the heat content of gas. Gas usage is determined by multiplying the Mcf used by the heat content value of the gas.

Deregulation - Removal or relaxation of regulations or controls governing a business or service operation such as utility.

Distribution - The delivery of natural gas from the city gate to the consumer.

Distribution Charges - Charges for the delivery of natural gas from the point of receipt into the NGDC’s system.

End-User - The natural gas consumer.

Estimated Reading - During months when the NGDC does not read the customer’s meter, the bill is based on previous gas usage, gas rates and weather.

Firm Service - Natural gas service offered to consumers specified in tariffs or contracts that anticipate no interruption.

Flat Rate - A fixed charge for goods and services that does not vary with changes in the amount used, volume consumed, or units purchased.

Formal Complaint - A written dispute or disagreement about a utility problem filed by a consumer with the PUC. A formal complaint is assigned to an Administrative Law Judge (ALJ) who holds hearings to develop a record. After the hearings, the Judge issues a decision.

Gas Cost Adjustment Charges - The amount billed or credited each month to correct any differences between projected and actual gas supply costs of the NGDC.

Informal Complaint - A dispute or disagreement about a utility problem filed by a consumer with the PUC’s Bureau of Consumer Services (BCS). A BCS investigator reviews the informal complaint and provides the customer with a response to their dispute.

Interruptible Service - Natural gas services that can be interrupted under terms and conditions specified by tariff or contract.

Interstate Transportation System - Federally regulated, large capacity pipelines that transport natural gas across state lines from points of production to NGDC’s city gates.

Late Payment Charge - A charge for any bill not paid by the due date.

Low Income Home Energy Assistance Program (LIHEAP) - A federal /state program to assist low income utility customer to pay for energy services.

Marketer or Broker - An individual or business, licensed by the Commission that sells or arranges to sell natural gas. The difference between marketers and brokers is that marketers own the gas they sell, while brokers do not.

Mcf - 1,000 cubic feet. This is a measure of gas usage.

Natural Gas Distribution Company (NGDC) - A regulated natural gas utility which owns the gas lines and equipment necessary to deliver natural gas to the consumer, formerly called LDC (Local Distribution Company).

Natural Gas Supplier (NGS) - An entity that sells or arranges to sell natural gas to customers that are delivered through the distribution lines of an NGDC.

Nonbasic Services - Optional services which are separate and not required for the physical delivery of natural gas service.

Office of Consumer Advocate (OCA) - A government office that represents the interest of residential utility consumers before the Public Utility Commission. This includes rate and services cases and before other state and federal regulatory agencies and courts.

Office of Small Business Advocate (OSBA) - A state government office that represents the interest of small business consumers. They participate in PUC rate cases and other state and federal regulatory cases.

Open Market - Competition is allowed.

Public Input Hearings - Meetings where consumers can give input to the PUC or PSC. This is in the form of sworn or unsworn testimony, often before a PUC or PSC administrative law judge.

Public Meeting - Meeting, open to the public, where the PUC or PSC Commissioners vote on all rate case filings and other official PUC / PSC business.

Public Service Commission - Also known as the PSC. The regulatory agency in the state of Maryland that provides supervision, policy, guidance and direction to public utilities and suppliers.

Public Utility Code - The law, which sets the powers and duties of the PA PUC and the MD PSC. It also sets many of the guidelines the PUC and PSC uses for utilities’ rates and service standards.

Public Utility Commission - Also known as the PUC. The regulatory agency in the state of Pennsylvania that provides supervision, policy, guidance and direction to public utilities and suppliers.

Service Reliability - A guarantee that the NGDC will deliver sufficient natural gas to satisfy customer consumption specified in tariffs and contracts.

State Tax Adjustment Surcharge - A surcharge on gas rates charged to customer, which permit NGDC’s to track changes to various state taxes.

Storage - Keeping natural gas in an underground container for removal and use at a later date.

Title 52 - The section of the Pennsylvania Code that governs utilities.

Transmission - The moving of natural gas through the interstate transportation system for deliver to NGDC’s.

Unbundling - Breaking down services and/or rates that are offered into parts so each part is billed separately