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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