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Understanding Transmission Costs in Your Power Bill

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In addition to energy supply cost, retail electricity prices include many other components such as transmission, ancillary service, and capacity costs. In this series, we will discuss these various components, their rates and what it means to customers of competitive energy suppliers. So, here are some answers to frequently asked questions we have received about electricity transmission rates.

What is electric power transmission?

Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to electrical substations located near demand centers. The U.S. electric transmission grid consists of more than 200,000 miles of extra high-voltage transmission lines (230 Kilovolts and greater).  Electricity travels at nearly the speed of light, arriving at a destination at almost the same moment it is produced. Transmission lines, when interconnected with each other, become transmission networks, typically referred to as “power grids” or simply “the grid.”

Transmission is distinct from power distribution, which is the local wiring between high-voltage substations and customers. Transmission infrastructure may be owned, operated and maintained by electric utilities or independent transmission owners.…
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What is Liquefied Natural Gas and How is it Changing the Energy Market?

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Liquefied natural gas (LNG) is natural gas that has been converted from a gaseous state to a liquid state through the condensation process. Traditionally, natural gas has been a commodity limited to the interconnecting network of pipelines in a geographical location. However, through technological advancements in gas processing and global shipping, the flow of natural gas can now cross world oceans traveling tens of thousands of miles from its source to a final demand market.…
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Lower Your Power Bill with Rate Response

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Commercial and industrial customers enrolled in a Load Response program typically receive payments from their utility, ISO or curtailment service provider in the form of a check, months after an event has occurred. But, wouldn’t it be nice to see immediate benefits and be able to manage your energy strategy in a more comprehensive way?

Our latest energy option, Rate Response, does just that. By combining electricity supply with Load Response products, customers can choose to receive a reduced rate on their electricity supply throughout the year or a…
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What is “Smart Grid”?

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Consumers are mostly puzzled when they hear the term “smart grid.” According to Smart Grid Consumer Collaborative’s (SGCC) latest ‘State of the Consumer Report’, approximately 75% of consumers either have never heard the term smart grid or don’t know what it means (Source: SmartGridNews).

Since Constellation is active in supporting smart grid advancement, we’re offering some information about the topic and how it can best be leveraged to benefit your business.…
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Constellation Announces First Integrated Competitive Electricity Supply and Load Response Offering

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We’re pleased to announce the launch of Constellation Peak Response, a program which allows Constellation commercial and industrial (C&I) electricity supply customers to reduce future capacity and transmission costs by lowering electricity consumption during the hours of peak demand.

Capacity and transmission charges typically account for 20 percent to 30 percent of a C&I customer’s overall electricity cost. Capacity charges ensure that there is an adequate excess supply of electricity to meet the highest levels of grid demand, while transmission charges cover the cost of transmitting energy over the grid from a generating facility to local utility distribution facilities.  In most regions, these charges are based on several hours each year when the grid is at its highest level of demand.…
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Constellation Completes 5.7- Megawatt Solar Generation Project for Portland General Electric

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We’re thrilled to announce the completion of an aggregate 5.7-megawatt (DC) solar generation project for Portland General Electric (PGE) in Lake County, Oregon. Constellation financed as well as owns and operates the solar power system.  In return, PGE purchases and receives all of the electricity generated by the solar panels at a fixed rate from Constellation under a 25-year solar power purchase agreement (PPA).…
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