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HomeMy WebLinkAbout2001-05-22 - AGENDA REPORTS - ENERGY PROFILE OPTIONS (2)CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Item to be pre: DATE: May 22, 2001 SUBJECT: ENERGY PROFILE AVAILABLE OPTIONS DEPARTMENT: Field Services RECOMMENDED ACTION City Council direct staff to retain a qualified advisor to assist in providing information regarding the electric utility industry, and provide guidance on options given the current community energy profile. Direct staff to conduct a community -wide energy forum to ascertain community values, needs, and solicit options available regarding this matter. Approve the allocation of $20,000 from Contingency Account No. 1240-7401 to Account No. 5100-8110 to fund related costs. Authorize City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND In response to concern expressed by the public and the City Council regarding the reliability and demand for energy in the Santa Clarita Valley, the City Council directed staff to examine the current situation and make recommendations as to the options available to our community. It is apparent that the energy situation in California is highly volatile, the markets and the pricing remain in flux, and there is great uncertainty as to what tack the Federal and/or State Government will take to respond to the crisis. Presently, there are over 100 pieces of legislation in California geared toward "solving" the energy crisis. Many of these proposals have a direct impact on a municipality's future role in the electric utility industry, and may make or break a particular strategy. To date, the City has taken an active role in addressing the energy crisis locally. Such steps include but are not limited to; an aggressive energy conservation program in all City facilities, installation of LED lights and complementary battery back-ups at multiple critical intersections, development of rolling black -out response strategies, outreach to businesses affected by the I-6 rates, participation in local energy summit, and extensive public and legislative outreach programs. In addition to these items, staff has conducted research on the various options currently available and potentially available to municipalities in the short and long term. Options and scenarios reviewed included use of local co -generation plants for power supply, contracting for electric services via other providers, aggregation, and creation of a municipal utility. aid � , u'/uItt_q�% Ax Av a Agenda Item:... AES,&v A6ikftotc ENERGY PROFILE AVAILABLE OPTIONS May 22, 2001 — Page 2 Based on the research conducted, as well as the continued uncertainty of the energy marketplace coupled with the complexity of the energy issue, it is critical that the City retain uniquely qualified individuals to assist in gaining an understanding of the current business environment for the electric utility industry. The advisor would initially conduct a one -day workshop in which the City Council and other interested stakeholders would be provided with an understanding of the opportunities and risks faced as an energy industry participant. The advisor would also assist in the future development of an action plan, and strategic steps to pursue the options discussed. In addition to these tasks, further research on local energy requirements and opportunities associated with the existing power generation facilities within the City limits as well as outside providers would be conducted. ALTERNATIVE ACTION Other action as determined by Council FISCAL IMPACT A total of $20,000 would be transferred from Contingency Account No. 1240-7401, leaving $793,387 remaining for future unanticipated expenditures through June 30, 2001 ATTACHMENTS ORTR /admin/ccitems/budgvgp6.dm ENERGY Glossary of Terms RECEIVED AND MADE A PART OF THE RECORD AT S/aa 19 MEETING ITEM NO. 9 FROM: 61� F F Assembly Bill 1890: AB 1890 provides the legislative guidance for restructuring of the electric industry in California. It was signed into law on September 23,1996 as Chapter 854 of the Statutes of 1996. Access Charge: A fixed tariff rate that recovers the portion of a utiles transmission revenue requirement not recovered through the variable Usage Charge. Aggregator: An entity responsible for planning, scheduling, accounting, billing and settlement for energy deliveries from the aggregator's portfolio of Sellers (generators, purchases) and/or Buyers (loads or sales). All -Electric Service: Electric service for residences having permanently- installed electric heating facilities and water heaters. Ampere: The unit of measurement of electric current produced in a circuit by one volt acting through a resistance of one ohm. Base Bill: A charge calculated through multiplication of the rate from the appropriate electric rate schedule by the level of consumption. Baseload: The minimum amount of electric power delivered or required over a given period of time at a steady rate. Biomass: Using solar energy stored in green plants and other organic matter in place of fossil fuels to power an electric generator. Biomass fuels include wood waste, agricultural wastes, methane gases from landfills and crops grown specifically for energy production. Using biomass to produce energy significantly reduces green house gas emissions that would otherwise be produced by these wastes or fossil fuels. Btu: The amount of heat energy equal to the quantity of heat required to raise the temperature of one pound (16 ounces) of water by one degree Fahrenheit. Bundled or Bundling: Refers to combining components of service, costs or rates into one unit. Historically, until electric restructuring, electric service was "bundled" and sold for a single price. Electric restructuring resulted in "unbundling' the elements of service, e.g., generation, transmission, distribution and metering and billing. Capacity (Purchased): The amount of energy and capacity available for purchase from outside the system. Capacity Charge: An element in a two-part pricing method used in capacity transactions (energy charge is the other element). The capacity charge, sometimes called Demand Charge, is assessed on the amount of capacity being purchased. CARE: California Aftemate Rates for Energy - This program provides a 15 percent reduction in electric rates for those meeting specific income criteria. CEC: California Energy Commission - The CEC is a state agency involved in, among other things, implementing the renewable energy program and certifying renewables generators and ESPs for the State. For more information, call the CEC at 1-800-555-7794. Co -generator: A generating facility that produces electricity and another form of useful thermal energy (such as heat or steam), used for industrial, commercial, heating, or cooling purposes. To receive status as a qualifying facility (QF) under the Public Utility Regulatory Policies Act (PURPA), the facility must produce electric energy and another form of useful thermal energy through the sequential use of energy. And meet certain ownership, operating, and efficiency criteria established by the Federal Energy Regulatory Commission (FERC). (See the Code of Federal Regulations, Title 18, Part 292.) Coincidental Demand: The sum of two or more demands that occur in the same time interval. Coincidental Peak Load: The sum of two or more peak loads that occur in the same time interval. Combined Cycle: An electric generating technology in which electricity is produced from otherwise lost waste heat exiting from one or more gas (combustion) turbines. The exiting heat is routed to a conventional boiler or to a heat recovery steam generator for utilization by a steam turbine in the production of electricity. This process increases the efficiency of the electric generating unit. Combined Cycle Unit: An electric generating unit that consists of one or more combustion turbines and one or more boilers with a portion of the required energy input to the boiler(s) provided by the exhaust gas of the combustion turbine(s). Commercial: The commercial sector is generally defined as non -manufacturing business establishments, including hotels, motels, restaurants, wholesale businesses, retail stores, and health, social, and educational institutions. The utility may classify commercial service as all consumers whose demand or annual use exceeds some specified limit. The limit may be set by the utility based on the rate schedule of the utility. Commercial Operation: Commercial operation begins when control of the loading of the generator is turned over to the system dispatcher. Competition Transition Charge (CTC): as authorized by the CPUC, a charge allowing the collection of transition costs in a competitively -neutral manner that does not increase rates for any customer class solely due to the existence of transition costs. [Section 367, AB 1890]. Contract Price: Price of fuels marketed on a contract basis covering a period of 1 or more years. Contract prices reflect market conditions at the time the contract was negotiated and therefore remain constant throughout the life of the contract or are adjusted through escalation clauses. Generally, contract prices do not fluctuate widely. Contract Receipts: Purchases based on a negotiated agreement that generally covers a period of 1 or more years. Cooperative Electric Utility: An electric utility legally established to be owned by and operated for the benefit of those using its service. The utility company will generate, transmit, and/or distribute supplies of electric energy to a specified area not being serviced by another utility. Such ventures are generally exempt from Federal income tax laws. Most electric cooperatives have been initially financed by the Rural Electrification Administration, U.S. Department of Agriculture. Day -Ahead Market: The forward market for the supply of electrical power at least 24 hours before delivery to Buyers and End -Use Customers. Demand -Side Management: The planning, implementation, and monitoring of utility activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. It refers only to energy and load -shape modifying activities that are undertaken in response to utility -administered programs. It does not refer to energy and load -shape changes arising from the normal operation of the marketplace or from govemment-mandated energy -efficiency standards. Demand -Side Management (DSM) covers the complete range of load- shape objectives, including strategic conservation and load management, as well as strategic load growth. Distribution System: The distribution assets of transmission owners that are not under the control of the ISO and are used to transmit power from the ISO Grid/distribution interfaces to the end user. EECC: Electric Education Call Center - The EECC is the toll free call center that has been established as part of the Customer Education Program (CEP) to answer residential and small business customer concerns about the changes in the electric utility industry. The EECC can be reached at 1-800-253-0500. Efficiency: Derived by dividing the heat content of one kilowatthour of electricity (3,412 Btu per kilowatthour) by the number of Btu contained in the input used to produce one kilowatthour.. Electric Plant (Physical): A facility containing prime movers, electric generators, and auxiliary equipment for converting mechanical, chemical, and/or fission energy into electric energy. Electric Rate Schedule: A statement of the electric rate and the terms and conditions governing its application, including attendant contract terms and conditions that have been accepted by a regulatory body with appropriate over -site authority. Electric Utility: A corporation, person, agency, authority, or other legal entity or instrumentality that owns and/or operates facilities within the United States, its territories, or Puerto Rico for the generation, transmission, distribution, or sale of electric energy primarily for use by the public and files forms listed in the Code of Federal Regulations, Title 18, Part 141. Facilities that qualify as co - generators or small power producers under the Public Utility Regulatory Policies Act (PURPA) are not considered electric utilities. Energy Charge: That portion of the charge for electric service based upon the electric energy (kWh) consumed or billed. Energy Deliveries: Energy generated by one electric utility system and delivered to another system through one or more transmission lines. Energy Efficiency: Refers to programs that are aimed at reducing the energy used by specific end- use devices and systems, typically without affecting the services provided. These programs reduce overall electricity consumption (reported in megawatthours), often without explicit consideration for the timing of program -induced savings. Such savings are generally achieved by substituting technically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Examples include high -efficiency appliances, efficient lighting programs, high -efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives, and heat recovery systems. Electric Energy: the generation or use of electric power by a device over a period of time, expressed in kilowatt-hours (kWh), megawatt -hours (MWh), or gigawatt -hours (GWh). Energy Receipts: Energy generated by one electric utility system and received by another system through one or more transmission lines. Energy Source: The primary source that provides the power that is converted to electricity through chemical, mechanical, or other means. Energy sources include coal, petroleum and petroleum products, gas, water, uranium, wind, sunlight, geothermal, and other sources. End -Use Customer: a residential, commercial, agricultural, or industrial customer in the electric industry who buys electric power to be consumed as a final product (not for resale). Federal Energy Regulatory Commission (FERC): A quasi -independent regulatory agency within the Department of Energy having jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, oil pipeline rates, and gas pipeline certification. Federal Power Act: Enacted in 1920, and amended in 1935, the Act consists of three parts. The first part incorporated the Federal Water Power Act administered by the former Federal Power Commission, whose activities were confined almost entirely to licensing non -Federal hydroelectric projects. Parts II and III were added with the passage of the Public Utility Act. These parts extended the Act's jurisdiction to include regulating the interstate transmission of electrical energy and rates for its sale as wholesale in interstate commerce. The Federal Energy Regulatory Commission is now charged with the administration of this law. Federal Power Commission: The predecessor agency of the Federal Energy Regulatory Commission. The Federal Power Commission (FPC) was created by an Act of Congress under the Federal Water Power Act on June 10, 1920. It was charged originally with regulating the electric power and natural gas industries. The FPC was abolished on September 20, 1977, when the Department of Energy was created. The functions of the FPC were divided between the Department of Energy and the Federal Energy Regulatory Commission. FERC: The Federal Energy Regulatory Commission. Final Day Ahead Schedule: the schedule of generation output/consumption that has been accepted by the ISO in the day -ahead market. Firm Gas: Gas sold on a continuous and generally long-term contract. Firm Power: Power or power -producing capacity intended to be available at all times during the period covered by a guaranteed commitment to deliver, even under adverse conditions. Forced Outage: The shutdown of a generating unit, transmission line or other facility, for emergency reasons or a condition in which the generating equipment is unavailable for load due to unanticipated breakdown. Fossil Resources: Electric generation using natural gas, oil ,coal, petroleum coke or other petroleum-based fuels. Full -Forced Outage: The net capability of main generating units that are unavailable for load for emergency reasons. Generators: Those entities designing, constructing, owning, operating and maintaining generation assets to supply energy and ancillary services to the competitive market. Geothermal Plant: A plant in which the prime mover is a steam turbine. The turbine is driven either by steam produced from hot water or by natural steam that derives its energy from heat found in rocks or fluids at various depths beneath the surface of the earth. The energy is extracted by drilling and/or pumping. Green Power: "Green" power is the commonly accepted term for energy coming from resources that are renewable through natural processes. Green power is considered to be cleaner than that produced from traditional generators that use fossil or nuclear fuels. It is cleaner because its production results in lower air pollution emissions and nuclear waste than electricity from traditional sources. Renewable, or green, energy is generated from solar, water, wind and geothermal (heat from the earth) sources and from the burning of biomass (agricultural or other wastes). Grid: The layout of an electrical distribution system Grid Management Charge: an approved FERC tariff which recovers the ISO's on-going operating and management costs. Heat rate: is a measure of generating efficiency— generally expressed in Btu per net kilowatthour. It is computed by dividing the total Btu content of fuel burned for electricity generation by the resulting net kilowatthour generation. Hour -Ahead Market: the electric power futures market that is established 1 -hour before delivery to End -Use Customers. Hydroelectric: A facility using falling water to tum a turbine and generate electricity. Independent Power Producers (IPP): a non-utility. Independent System Operator (ISO): the ISO is the FERC regulated control area operator of the ISO transmission grid. Its responsibilities include providing non-discriminatory access to the grid, managing congestion, maintaining the reliability and security of the grid, and providing billing and settlement services. The ISO has no affiliation with any market participant. Intermediate Load (Electric System): The range from base load to a point between base load and peak. This point may be the midpoint, a percent of the peakload, or the load over a specified time period. Internal Combustion Plant: A plant in which the prime mover is an internal combustion engine. An internal combustion engine has one or more cylinders in which the process of combustion takes place, converting energy released from the rapid burning of a fuel -air mixture into mechanical energy. Diesel or gas-fired engines are the principal types used in electric plants. The plant is usually operated during periods of high demand for electricity. Interruptible Load: Refers to program activities that, in accordance with contractual arrangements, can interrupt consumer load at times of seasonal peak load by direct control of the utility system operator or by action of the consumer at the direct request of the system operator. It usually involves commercial and industrial con summers. In some instances the load reduction may be affected by direct action of the system operator (remote tripping) after notice to the consumer in accordance with contractual provisions. For example, loads that can be interrupted to fulfill planning or operation reserve requirements should be reported as Interruptible Load. Interruptible Load as defined here excludes Direct Load Control and Other Load Management. (Interruptible Load, as reported here, is synonymous with Interruptible Demand reported to the North American Electric Reliability Council on the voluntary Office of Energy Emergency Operations Form OE -411, "Coordinated Regional Bulk Power Supply Program Report,' with the exception that annual peakload effects are reported on the Form EIA -861 and seasonal (i.e., summer and winter) peakload effects are reported on the OE -411). Kilowatt (kW): One thousand watts. Kilowatthour (kWh): One thousand watthours. Large Hydroelectric: California defines a large hydroelectric facility as having a generating capacity of more than 30 megawatts (mW). Load (Electric): The amount of electric power delivered or required at any specific point or points on a system. The requirement originates at the energy -consuming equipment of the consumers. Load profile: The breakdown of electricity usage on an annual, monthly daily and hourly basis. Local Publicly Owned Electric Utilities: a municipal corporation, a municipal utility district, an irrigation district, or a joint power authority (which can include one or more of the agencies mention above) furnishing electric services over its own transmission facilities, or furnishing electric service over its own or its members' distribution system. Locational Market Clearing Price: the price at which supply equals demand at a specified location All demand which is prepared to pay at least this price at the specified location has been satisfied. All supply which is prepared to operate at or below this price in the specified location has been purchased. Losses: electric energy losses in the electric system which occur principally as energy transformation from kilowatt-hours (kWh) to waste heat in electrical conductors and apparatus Loss Factor: the ratio of the average loss in kilowatts (kW) during a designated period to the peak or maximum loss in kW occurring in that period Market Clearing Price: the price at a location at which supply equals demand --all demand at or above this price has been satisfied, and all supply at or below this price has been purchased. Maximum Demand: The greatest of all demands of the load that has occurred within a specified period of time. Megawatt (MW): One million watts. Megawatthour (MWh): One million watthours. Merit Order Rank: the ranking by the PX of generation according to their applicable bid prices for scheduling and price setting purposes. Municipal Utility (MUNIs): a Local Publicly Owned Electric Utility that owns or operates electric facilities subject to the jurisdiction of a municipality, as opposed to being subject to FERC or CPUC jurisdiction. NERC: North American Electric Reliability Council New Renewable Resource Power: Energy generated by a certified renewable resource facility that was not available in the marketplace prior to January 1, 1998 (either through a utility contract or otherwise). Examples: Power generated in excess of that provided for in a utility interconnection agreemenUutility power purchase agreement; increased energy capacity resulting from re -powering a renewable resource facility; or power generated by a renewable resource facility not operational (not selling into the grid) prior to 1998. Non -coincidental Peak Load: The sum of two or more peakloads on individual systems that do not occur in the same time interval. Meaningful only when considering loads within a limited period of time, such as a day, week, month, a heating or cooling season, and usually for not more than 1 year. Non -Firm Power: Power or power -producing capacity supplied or available under a commitment having limited or no assured availability. Non-utility Power Producer: A corporation, person, agency, authority, or other legal entity or instrumentality that owns electric generating capacity and is not an electric utility. Non-utility power producers include qualifying co -generators, qualifying small power producers, and other non-utility generators (including independent power producers) without a designated franchised service area, and which do not file forms listed in the Code of Federal Regulations, Title 18, Part 141. Nuclear Power Plant: A facility in which heat produced in a reactor by the fissioning of nuclear fuel is used to drive a steam turbine. ORA: Office of Ratepayer Advocates - ORA is the office within the California Public Utilities Commission that advocates on behalf of all utility ratepayers in proceedings before the Commission For more information, visit the ORA home page at httpJ/ora.ca.gov, or call (415) 703-1628. Outage: The period during which a generating unit, transmission line, or other facility is out of service. Peak Demand: The maximum load during a specified period of time. Peak Load Plant: A plant usually housing old, low -efficiency steam units; gas turbines; diesels; or pumped -storage hydroelectric equipment normally used during the peak -load periods. Plant: A facility at which are located prime movers, electric generators, and auxiliary equipment for converting mechanical, chemical, and/or nuclear energy into electric energy. A plant may contain more than one type of prime mover. Electric utility plants exclude facilities that satisfy the definition of a qualifying facility under the Public Utility Regulatory Policies Act of 1978. Power: The rate at which energy is transferred. Electrical energy is usually measured in watts. Also used for a measurement of capacity. Power Pool: An association of two or more interconnected electric systems having an agreement to coordinate operations and planning for improved reliability and efficiencies. Price: The amount of money or consideration -in-kind for which a service is bought, sold, or offered for sale. Public Authority Service to Public Authorities: Public authority service includes electricity supplied and services rendered to municipalities or divisions or agencies of State or Federal governments, under special contracts or agreements or service classifications applicable only to public authorities. Public Utility Holding Company Act (PUHCA): This 1935 Act broke up holding companies single integrated utilities. Public Utility Regulatory Policies Act (PURPA): This 1978 Act required electric utilities to interconnect with and buy capacity and energy offered by nonutilities meeting criteria established by FERC. Pumped -Storage Hydroelectric Plant: A plant that usually generates electric energy during peak - load periods by using water previously pumped into an elevated storage reservoir during off-peak periods when excess generating capacity is available to do so. When additional generating capacity is needed, the water can be released from the reservoir through a conduit to turbine generators located in a power plant at a lower level. (Stored energy— battery) Purchased Power Adjustment: A clause in a rate schedule that provides for adjustments to the bill when energy from another electric system is acquired and it varies from a specified unit base amount. Pure Pumped -Storage Hydroelectric Plant: A plant that produces power only from water that has previously been pumped to an upper reservoir. Qualifying Facility (OF): A co -generation or small power production facility that meets certain ownership, operating, and efficiency criteria established by the Federal Energy Regulatory Commission (FERC) pursuant to the Section 201 of Public Utility Regulatory Policies Act (PURPA). (See the Code of Federal Regulations, Title 18, Part 292.) Rate Base: The value of property upon which a utility is permitted to earn a specified rate of return as established by a regulatory authority. The rate base generally represents the value of property used by the utility in providing service and may be calculated by any one or a combination of the following accounting methods: fair value, prudent investment, reproduction cost, or original cost. Depending on which method is used, the rate base includes cash, working capital, materials and supplies, and deductions for accumulated provisions for depreciation, contributions in aid of construction, customer advances for construction, accumulated deferred income taxes, and accumulated deferred investment tax credits. Regulation: The governmental function of controlling or directing economic entities through the process of rulemaking and adjudication. Renewable Resources: Renewable resources for the production of electricity are wind, solar, water (small hydro), biomass (the burning of agricultural or other wastes) and geothermal (earth heat). These resources are considered renewable because they do not run out or they quickly renew themselves by natural processes. Residential: The residential sector is defined as private household establishments which consume energy primarily for space heating, water heating, air conditioning, lighting, refrigeration, cooking and clothes drying. The classification of an individual consumers account, where the use is both residential and commercial, is based on principal use. For the residential class, do not duplicate consumer accounts due to multiple metering for special services (water, heating, etc.). Apartment houses are also included. Restructuring Trusts: the two tax-exempt public benefit trusts established by the CPUC to provide for the design and development of hardware and software systems for the Power Exchange and the Independent System Operator. Retail: Sales covering electrical energy supplied for residential, commercial, and industrial end-use purposes. Other small classes, such as agriculture and street lighting, also are included in this category. Scheduled Outage: The shutdown of a generating unit, transmission line, or other facility, for inspection or maintenance, in accordance with an advance schedule. Scheduling Coordinators (SC's): submit balanced schedules and provide settlement -ready meter data to the ISO. They are similar to a private/investor owned equivalent to the PX. Scheduling Coordinators may also: — Settle with generators and retailers, the PX and the ISO — Maintain a year-round, 24-hour scheduling center — Provide non -emergency operating instructions to generators and retailers The PX is considered a Scheduling Coordinator and provides the spot market into which other SC's can buy or sell to balance their schedules. Senate Bill 477: SB 477 was a companion or follow-up bill to AB 1890. It added many consumer protections by establishing stronger ESP registration requirements and enabling the Commission to accept, investigate and help resolve complaints against ESPs. It also required a standard bill format and disclosure of prices, terms and conditions of service for residential and small commercial customers and authorized ORA to use the disclosures to help consumers understand and evaluate service offers. Small Power Producer (SPP): Under the Public Utility Regulatory Policies Act (PURPA), a small power production facility (or small power producer) generates electricity using waste, renewable (water, wind and solar), or geothermal energy as a primary energy source. Fossil fuels can be used, but renewable resource must provide at least 75 percent of the total energy input. (See Code of Federal Regulations, Title 18, Part 292.) Solar: Electricity produced by sources that collect energy from the sun. Examples of solar power are: photovoltaic panels, which are semiconductors that directly generate electricity, and solar thermal plants that use the sun to create steam to tum a turbine. Spot Purchases: A single shipment of fuel or volumes of fuel, purchased for delivery within 1 year. Spot purchases are often made by a user to fulfill a certain portion of energy requirements, to meet unanticipated energy needs, or to take advantage of low -fuel prices. Steam -Electric Plant (Conventional): A plant in which the prime mover is a steam turbine. The steam used to drive the turbine is produced in a boiler where fossil fuels are burned. Stranded Costs: Long term capital debt originating before and extending after the point of deregulation. System (Electric): Physically connected generation, transmission, and distribution facilities operated as an integrated unit under one central management, or operating supervision. System Power: This is the traditional electricity mix that you would get if you did not switch from your UDC (Utility Distribution Company). It currently consists of approximately 17% coal, 24% large hydroelectric, 35% natural gas, 14% nuclear and 11 % eligible renewables. Tariff: a document filed with the appropriate regulatory authority specifying lawful rates, charges, rules, and conditions under which the utility provides services to parties. A tariff typically includes rates schedules, list of contracts, rules and sample forms. Time of Use: This rate option allows customers to purchase electricity on a rate schedule reflecting their usage in real time (hour by hour) based on the PX price. Consumers may potentially lower their costs by shifting their usage to "non peak' hours when electricity is available at a lower rate. In most cases, this requires the purchase of a special meter. Transition Period: the period of time to allow IOUs and Local Publicly -Owned Utilities an opportunity to continue to recover costs for generation -related assets and obligations that may not be recoverable in market prices in a competitive generation market. The period was defined as January 1, 1998 through December 31, 2001. Transmission: The movement or transfer of electric energy over an interconnected group of lines and associated equipment between points of supply and points at which it is transformed for delivery to consumers, or is delivered to other electric systems. Transmission is considered to end when the energy is transformed for distribution to the consumer. Transmission System (Electric): An interconnected group of electric transmission lines and associated equipment for moving or transferring electric energy in bulk between points of supply and points at which it is transformed for delivery over the distribution system lines to consumers, or is delivered to other electric systems. Unbundled Rates: separate line -item charges for generation, transmission, distribution, and other services and programs. Utility Distribution Company (UDC): a distribution wires business and a regulated retailer who serves end-use customers. WSCC: Western Systems Coordinating Council, this region includes Califomia. Watt: The rate of energy transfer equivalent to one ampere flowing under a pressure of one volt at unit power factor. Watthour: An electrical energy unit of measure equal to one watt of power supplied to (or taken from) and electric circuit steadily for one hour. Wheeling Service: The movement of electricity from one system to another over transmission facilities of intervening systems. Wheeling service contracts can be established between two or more systems. Wholesale Sales: Energy supplied to other electric utilities, cooperatives, municipals, and Federal and State electric agencies for resale to ultimate consumers. Wind Power: Natural wind turns "wind-mill-style" turbines to generate electricity.