Glossary of Terms
The arrival of competition to Virginia's electric utility industry brings with it a new vocabulary.

Aggregator - A person, local government or organization licensed by the SCC that brings together a group of customers and negotiates the price and other details for electric supply service on their behalf.

Competitive Service Provider (CSP) - A person or company licensed by the SCC to sell competitive energy services in Virginia.

Competitive Transition Charge - This charge, which may be as low as zero and may vary annually, applies to customers who choose a CSP, and is associated with the transition to competition in the electric industry. This charge is sometimes referred to as a transition charge or wires charge.

Default service - The required provision of electricity supply service by a supplier designated by the SCC, to customers who are unable to shop for a CSP, choose not to shop or sign up with a CSP who at some point fails to perform. Such customers will be served under capped rates until this service is established.

Distribution service - The delivery of electricity to your home or business over AEP's distribution lines; this service must be purchased from AEP at regulated rates.

Electricity supply service - Consists of generation service and fuel, or when provided together, generation service, fuel and the OATT portion of transmission service. This service may be purchases from a CSP. In exercising the choice to purchase from a CSP, you will be subject to any Commission-approved Competitive Transition Charge in addition to the CSP's charges for electricity supply service.

Local Distribution Company (LDC) - The regulated public utility that owns, maintains and operates the distribution lines and other equipment necessary to deliver electricity you; LDCs are regulated by the SCC.

Local utility tax (local consumers tax) - A tax, imposed on electricity consumers by most localities of the Commonwealth based on kilowatthours (kWh) used by the consumer.

Price to compare - The price you can use to compare offers from new suppliers. In order for you to save money, a new supplier must offer you a price lower than your price to compare for the same usage. The price to compare shown on your bill is provided as a guidelines only and may vary slightly month to month based on actual usage. Price to compare is for generation, fuel factor and OATT transmission services only.

State and local consumption tax (VA Electric Consumption Tax) - A tax on electricity consumers in the Commonwealth based on kWh used by the consumer and delivered by AEP.

Transmission service - Consists of transmission service provided under the applicable Open Access Transmission Tariff (OATT) and retail transmission service.

Unbundled service - The separation of generation, open-access transmission, retail transmission and distribution services and possibly other related services into service offerings with separate prices for each.