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Glossary of Terms

Customer Reference Load (CRL) -- the customer's historical energy use pattern; serves as a starting point against which changes in energy use are measured and billed.

Day-Ahead Pricing -- PPL Electric Utilities transmits to DSIR customers 24 hourly prices that can be used for planning purposes for the next day. Note: Actual pricing may differ from the Day-Ahead Price.

Electronic Link-- the electronic equipment (customer's PC and modem, and PPL's software) that links metered data and prices between PPL Electric Utilities and the customer.

Demand Side Initiative Rider (DSIR) -- PPL Electric Utilities rider that gives customers more flexibility in energy consumption decisions. Demand Side Initiative Rider Bill-- four monthly charges that make up a DSIR customer's bill:

  • The base bill. This is the agreed-upon CRL (reference) use calculated at the standard LP-6, LP-5, LP-4, IS-T or IS-P rate schedule. All applicable riders and taxes are applied to the base bill.
  • Charges or credits for actual hourly energy use that is greater or less than the CRL. These figures are calculated hourly using the hourly Market Price.
  • $349.27 program participation charge. This covers the costs of administering the program, transmission and metering equipment, software costs and other miscellaneous costs.
  • Gross receipts tax (currently 5%).

Qualified DSIR Customers-- customers on PPL Rate Schedules LP-6, LP-5, LP-4, IS-T or IS-P that have a monthly maximum demand of at least 1,000 KW year-round.

Market Price -- the hourly market price calculated from three components: marginal operating costs; loss adjustment factor; and market adjustment factor.

  • Marginal operating costs: PJM estimates hourly marginal costs based on the value of generation, transactions with the PJM Interconnection Association, and two-party transactions with other companies.
  • Loss adjustment factor: Adjusts the total marginal costs to account for losses between the generator and the customer's meter.
  • Market adjustment factor : A factor which provides a twenty five percent (25%) market adjustment of costs for incremental and decremental energy use. This factor will be 1.25 for hours of incremental kWh usuage and 0.75 for hours of decremental kWh usuage.

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