Glossary: Electricity Entities /
Permitting Procedures
There are many facets of the electrical grid, and a number
of associated companies and organizations that work to bring electricity
to end-users.
Area network system: A section of the electrical grid typically found in small areas of major cities and designed to provide high reliability to a group of customers. An area network system, as opposed to a spot network or radial system, consists of multiple wires interconnected with each other and a group of customers. This provides multiple paths on which electricity can flow, to prevent loss of power if one piece of the network stops working. Because it is not currently possible to interconnect generation to an area network, clean energy development in these areas can be difficult.
Distribution: The delivery of electricity within a local area to individual customers. The distribution system is connected to the transmission system by substations that step down high-voltage transmission power for local distribution.
Distribution companies: The entities that own and operate local distribution systems, delivering electricity to individual customers.
Electric utility: An entity that owns and operates transmission and/or distribution facilities and delivers electric energy to customers. It may be an investor-owned, municipal, state, or federal electric utility, or a rural electric cooperative. Find your local Massachusetts utility.
Electrical grid (electric grid): The grid can most easily be understood as a web of connections between power plants and the consumer of electricity. This web transfers electricity from power plants through transmission substations, high voltage transmission lines, distribution substations, and distribution lines to the consumer.
Electricity supplier: Suppliers purchase electricity from generators and sell it to end-users (consumers). Suppliers are separate from distribution and transmission companies and consumers can choose their supplier based on price and fuel sources.
Generator: A generator is a power plant that produces electricity. Generators can be located centrally to serve a large number of customers or as distributed generation to serve an individual or smaller group of customers.
Green electricity provider: A utility or company that generates, purchases, or invests in electricity from renewable sources, such as wind or solar power, or biofuel, and sells it to customers for a small premium over standard electricity costs.
Interconnection: The connection of an electric generator to the electric grid. The term "interconnection" is used rather than "connection" because the electric grid itself is a web of wires and substations that are interconnected to each other to provide multiple paths for electricity. Learn more about interconnection policies in Massachusetts.
Investor-owned utility: A publicly held utility that typically serves multiple towns or regions and often combines transmission and distribution services. Standards, rates, and other aspects of investor-owned utilities are regulated by the Massachusetts DTE. These utilities are also required under the Massachusetts Electric Restructuring Act of 1997 to collect energy efficiency and renewable energy funding for use in public funds.
Municipal utility: Municipally owned utilities are owned and operated by the individual towns and cities they serve. These utilities are responsible for customer billing, wire, pole, and meter maintenance, connecting new customers, distribution of electricity, and restoring power after an outage. These utilities are not required to collect energy efficiency and renewable energy funding for use in public funds, but some have elected to establish their own energy efficiency funds and install clean energy in their local service areas.
Radial system: A radial system is the most common and simplest type of electric distribution. In a radial system, as opposed to an area or spot network system, a single wire radiates from the main distribution line to an individual customer and power flows one way as opposed to flowing on multiple paths as in network systems. Many clean energy technologies can gain approval to interconnect to a radial system.
Siting: The process of choosing a location for an electric generator. Siting is a particularly critical step for wind turbines, which can have significant impacts on local environments if not sited correctly. Siting not only entails selection of a site but also the process of involving a community, approval boards, and others in determining where a generator should be located.
Spot network system: A section of the electric grid typically serving single large customers like hospitals, industrial facilities, and office buildings. A spot network system, as opposed to an area network or radial system, consists of two or more wires that serve one customer so that when one wire is not working, the others can still provide power to the customer. Because of the complexity of spot networks, interconnecting clean energy to such a system requires additional review by the local utility.
Substation: A substation is a point in the electric grid where electricity is either “stepped up” or “stepped down” to a different voltage to efficiently transfer the electricity over transmission and distribution lines.
Transformer: A transformer is an electrical device installed at a substation that transfers energy from one electrical circuit to another, and is often used to convert between high and low voltages and accordingly between low and high currents.
Transmission: The delivery of large amounts of electricity from regional power plants to local areas. The transmission system is connected to local distribution systems by substations that step down high-voltage transmission power for local distribution.
Transmission companies: The entities that own and operate regional transmission systems, delivering electricity over a network of transmission lines within states and regions.