Chapter 10 ampere the unit of measurement of electric current. Amount of current produced by 1 V through a resistance of 1 ohm. avoided cost cost to a utility to generate electricity if it buys the same amount from another source. competitive market an environment that allows many sellers and buyers to buy and sell goods or services from each other. Customers have the choice of buying their energy from more than one provider. demand the amount of electricity that must be generated to meet the needs of all customers. Sometimes called the load. Demand Side Management (DSM) utility programs used to reduce peak electrical demand and help customers use electricity more efficiently. deregulation the act or process of removing regulations or other barriers that may restrict an industry. electrolyte a chemical that, when dissolved in water, will conduct an electrical current. fuel cell device that produces electricity from a chemical reaction between hydrogen and oxygen. green energy electricity produced by renewable resources. grid a system of power lines and generators that are coordinated to provide electricity to customers at various points. independent power producer (IPP) a company, other than a utility, that generates electricity. independent system operator (ISO) an entity that monitors the reliability of the power system and coordinates the supply of electricity around the state. MAGLEV (magnetic levitation) suspension of an object using repulsive force between two magnets. Used for high-speed trains. off-peak period hours of the day when demand for electricity is low. Usually has lower prices for electricity. Ohm’s law the empirical relationship between the current, potential difference, and resistance in an electrical circuit: V = IR. PURPA (Public Utilities Regulatory Policy Act) 1978 federal law requiring competition in the electrical generating industry. Requires utilities to buy power from eligible co-generation sources, small hydro, or waste-fueled facilities, under contracts at an avoided cost rate. stranded costs costs that a utility has an obligation to pay for, but may not be able to recover from a customer because the customer no longer uses the utility’s service. time-of-use pricing rates that are designed to reflect changes in a utility’s cost of providing service that change by time of day or season.