Rate Calculator - Definitions

ELECTRIC TERMS

Am Ampere (Amp) - The unit of measurement of electrical current produced in a circuit by 1 volt acting through a resistance of 1 ohm. The measure of the rate of flow of electrons past a given point in an electric conductor such as a power line.

Demand - The rate at which electric energy or natural gas is delivered to or by a system at a given instant or averaged over a designated period, usually expressed in kilowatts or megawatts (electric).

Demand Charge - The Demand Charge portion of rate design is expected to recover the costs associated with the level of demand for the particular service and will be paid even if no service is taken by the customer; a reservation charge. Included in demand charges are capital-related costs and the cost of operation and maintenance of generation, transmission and distribution.

Demand Cost - A cost included in the total cost of service that is allocated to classes of customers on the basis of service entitlements rather than actual use.

Distribution (Electrical) - The system of lines, transformers and switches that connect between the transmission network and customer load. The transport of electricity to ultimate use points such as homes and businesses. The portion of an electric system that is dedicated to delivering electric energy to an end user at relatively low voltages.

Kilowatt (kW) - A unit of electrical power equal to one thousand watts.

Kilowatt-hour (kWh) - A unit of electrical energy which is equivalent to one kilowatt of power used for one hour. One kilowatt-hour is equal to 1,000 watt-hours. An average household will use between 800 - 1300 kWh per month depending upon geographical area. It is equivalent to 3,412 Btu.

Load Factor - The ratio of average load to peak load during a specific period of time, expressed as a percent. The load factor indicates to what degree energy has been consumed compared to maximum demand or the utilization of units relative to total system capability. An electric system's load factor shows the variability in all customers' demands.

Megawatt-hour (MWh) - One million watt-hours of electric energy. A unit of electrical energy which equals one megawatt of power used for one hour.

Power Factor - The fraction of power actually used by a customer's electrical equipment compared to the total apparent power supplied, usually expressed as a percentage. Power factors apply only to alternating current circuits; direct current circuits always exhibit a power factor of 100 percent. A power factor indicates how far a customer's electrical equipment causes the electric current delivered at the customer's site to be out of phase with the voltage.

Transmission - The network of high voltage lines, transformers and switches used to move electrical power from generators to the distribution system. Also utilized to interconnect different utility systems and independent power producers together into a synchronized network. Transmission is considered to end when the energy is transformed for distribution to the consumer.

Volt - The unit of measurement of electromotive force. It is equivalent to the force required to produce a current of one ampere through a resistance of one ohm. The unit of measure for electrical potential. Generally measured in kilovolts or kV. Typical transmission level voltages are 115 kV, 230 kV and 500 kV.

Watt - A measure of real power production or usage equal to one Joule per second. The rate of energy transfer equivalent to 1 ampere flowing under a pressure of 1 volt at unity power factor. An electric unit of power or a rate of doing work.

For additional energy-related definitions, please visit Duke Energy's glossary of energy terms.

ELECTRIC RATES

Ohio
Rate DS (Service At Secondary Distribution Voltage).
Applies to non-residential customers with average monthly demands greater than 15 kW. Customers on this rate receive service at secondary distribution voltage, i.e., 480 volts or lower. Duke Energy owns the transformer adjacent to the customer’s facility that reduces the voltage from primary (12,500 volts or 34,500 volts) to secondary distribution voltage. This is a demand rate. Rate DS contains demand (kW) charges and energy (kWh) charges. Approximately 19,500 customers receive service under Rate DS. Customers on Rate DS range in size from 15 kW to about 5,000 kW.

Rate DP (Service At Primary Distribution Voltage).
Applies to non-residential customers that receive service at 12,500 volts or 34,500 volts. The customer owns the transformer adjacent to the customer’s facility that reduces the voltage from primary (12,500 volts or 34,500 volts) to secondary distribution voltage. The customer assumes the cost of installing, maintaining, and replacing the transformer. In return, the customer pays lower rates than those contained in Rate DS. This is a demand rate. Approximately 220 customers receive service under Rate DP. Although there is no size restriction, Rate DP customers tend to be larger than average and almost all of them have monthly demands of 500 kW or higher. This rate is not available online for estimating - contact the Economic Development team at 513-419-5419 or the Business Service Center at 1-800-774-1202 for more information about this rate.

Rate TS (Service At Transmission Voltage).
Applies to customers that receive service at transmission voltage (69,000 volts or 138,000 volts). The customer owns the substation that reduces voltage from transmission level to secondary voltage. The customer assumes the cost of installing, maintaining, and replacing the substation (the initial cost can be as much as $1 million). In return, the customer pays lower rates than those contained in Rate DS and Rate DP. This is a demand rate. Thirty-four customers receive service under Rate TS. Although there is no size restriction, Rate TS customers tend to be very large and almost all of them have monthly demands of 5000 kW or higher. The largest TS customer in Greater Cincinnati is AK Steel with a demand of about 220,000 kW.

Kentucky
Rate DT (Time-Of-Day Rate For Service At Distribution Voltage).
This rate is mandatory for customers with demands greater than 500 kW, except for transmission voltage customers. Demand charges vary between summer and winter, and between on-peak and off-peak periods. This tariff addresses both secondary and primary distribution voltage customers. Customers that own their transformers (i.e., primary voltage customers) receive discounts on the demand charges. Approximately 220 customers receive service under Rate DT.

Rate TT (Time-Of-Day Rate For Service At Transmission Voltage).
This rate is mandatory for customers who elect to receive service at transmission voltage. Demand charges vary between summer and winter, and between on-peak and off-peak periods. Fourteen customers in Greater Cincinnati receive service under Rate DT.

Rate DS (Service At Secondary Distribution Voltage).
This rate applies to non-residential customers with average monthly demands less than 500 kW. Customers on this rate receive service at secondary distribution voltage, i.e., 480 volts or lower. Duke Energy owns the transformer adjacent to the customer’s facility that reduces the voltage from primary (12,500 volts or 34,500 volts) to secondary distribution voltage. This is a demand rate. Rate DS contains demand (kW) charges and energy (kWh) charges. Approximately 12,000 customers receive service under Rate DS. Customers on Rate DS range in size from 5 kW to about 5,000 kW.

Rate DP (Service At Primary Distribution Voltage).
This rate applies to non-residential customers that receive service at 12,500 volts or 34,500 volts. Customers must have demands less than 500 kW. The customer owns the transformer adjacent to the customer’s facility that reduces the voltage from primary (12,500 volts or 34,500 volts) to secondary distribution voltage. The customer assumes the cost of installing, maintaining, and replacing the transformer. In return, the customer pays lower rates than those contained in Rate DS. This is a demand rate. Eleven customers receive service under Rate DP. This rate is not available online for estimating - contact the Economic Development team at 513-419-5419 or the Business Service Center at 1-800-774-1202 for more information about this rate.