Definitions

Account Number: This number is specific to your service(s) listed on this bill.

Aggregation: Individual users and/or suppliers may be consolidated into one group.

Ancillary Services: Those services necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission provider's transmission system in accordance with good utility practice. These services provided under a transmission provider's open access transmission tariff include Scheduling, System Control and Dispatch Service; Reactive Supply and Voltage Control from Generation Sources Service; Regulation and Frequency Response Service; Energy Imbalance Service; Operating Reserve - Spinning Reserve Service; and Operating Reserve - Supplemental Reserve Service.

Billing Month: The month of the bill used in this calculation. (The bill calculator uses current rates (summer or winter)). Electricity usage may vary significantly on a monthly basis depending on the season and the appliances or equipment operated during that month. For example, a customer using electricity to heat their home or business may have much higher electricity usage in February than in May.

Bonnevile Power Administration (BPA) Exchange Credit: Credit to all electric residential related and small farm retail distribution customers in accordance with the Northwest Power Act.

Competitive Transition Charges (CTCs or "Stranded Costs" ): CTCs are not related to your choice of energy suppliers. These charges cover some historic required costs associated with moving from a monopoly to the new competitive environment and are further defined as costs associated with:

CTC-RA - "Regulatory Assets" or investments such as historic conservation and taxes.
CTC-QF - "Qualifying Facilities" federally mandated contracts for alternative generating facilities.
CTC-GP - "Gas Production" historic gas costs that are greater than market prices.
CTC-GP CREDIT - Competitive Transition Cost credits which lower natural gas rates. These result from the manner in which historic production related expenses have been refinanced.
CTC-RA CREDIT - Competitive Transition Cost credits which lower natural gas rates. These result from the manner in which historic production related expenses have been refinanced.

Competitive Transition Costs have already been established for NorthWestern Energy natural gas customers and appear on your natural gas bill.

Consolidated Billing: A "Post Choice" bill produced by NorthWestern Energy, which includes both the regulated charges from NorthWestern Energy and the charges of the supplier. This billing option may be selected by the supplier. Under Consolidated Billing, the customer is responsible to pay NorthWestern Energy for both supply and delivery charges. NorthWestern Energy will forward the supply payments to the supplier.

Default Supplier: The regulated electric distribution utility is the Default Supplier in its distribution service territory until July 1, 2007. The Default Supplier is regulated by the Public Service Commission and provides electricity to customers not purchasing their electricity supply from an unregulated supplier.

Demand: The largest amount of electricity required during a defined, brief period-of-time. Demand is measured in kilowatts (kW). There may be separate Demand charges for Distribution, Supply, and Transmission.

Distribution Charges: Regulated charges associated with the delivery of electricity or natural gas through the local pipes and wires to your home or business.

Distribution Service Charge: This is a flat, monthly charge to cover meter reading, billing and other service-supported costs. This amount is not affected by your choice of supplier and is set by the PSC.

Electricity Supply Charge: Supply Charge multiplied by Energy Usage.

Energy/Commodity: The amount of energy (electricity) or commodity (natural gas) used, measured in units and billed on a cost-per-unit basis. Kilowatt-hours (kWh) are units of electricity and Dekatherms (Dkt) are units of natural gas. There may be separate charges for Supply, Transmission, Transportation, Storage, and Distribution.

Gas Amount: This is the total gas bill based upon the inputs from above. If you entered the energy usage from a recent 1998 NorthWestern Energy billing statement along with the appropriate month, this amount should match the amount listed on the bill you are using for input.

Gas/Electric Factor: Some meters require a mathematical calculation to determine the actual amount of energy used. Gas usage is multiplied by this number to reflect the actual heating value of the gas supplied.

Independent Billing: "Post Choice" billing in which the supply is on a billing statement from the supplier and the delivery charges from NorthWestern Energy are separately billed. The "Supplier" and the "Utility" bill independent of one another. The NorthWestern Energy bill will separate out the charges for Distribution, NorthWestern Energy Service Charge, Universal Systems Benefits Charge (USBC) and, as applicable, Competitive Transition Charges (CTCs and CTC Credits). The Supplier’s bill will include the charges for the services they provide. Your Supplier will decide whether to offer an independent bill or to include their charges on a consolidated bill.

Meter Size: This information does not appear on your bill. However, the monthly service charge is based upon the size of your natural gas meter. This information is stored in the customer information system.

Rate Code: This is the code that determines the regulated rates applied to your bill.

Sale Credit: Credit to all distribution retail customers related to the proceeds from the sale of Montana Power Company to NorthWestern Corporation; this credit will be in effect until July 1, 2003.

Service Type:

Residential - Home energy customers listed as RES in the description section of NorthWestern Energy regulated charges section of the bill.
General Service (GS) - Non-residential customers. Commercial customers listed as GS in the description on NorthWestern Energy billing statement. Commercial customers may be either Secondary (most common) or Primary level of service. There are several classes of GS customers.
GS Demand Usage - The rate of electricity consumption in kilowatts (kW). This charge generally does not apply to residential customers. Demand usage is listed in the "No. of Units or kW Demand" column of NorthWestern Energy billing statement.
GS Non-Demand - Small Commercial customers without demand meters on their facilities. A non-demand commercial will not have a number in the "kW Usage" column of their NorthWestern Energy billing statement.
GS Other - There are many different rates and types of General Service accounts. This site is directed toward the most common NorthWestern Energy accounts.

Storage Charges: Regulated charges for storing natural gas to stabilize gas supply costs. These costs may be affected by your choice of supplier.

Stranded Costs: See Competitive Transition Charges.

Supply - Commodity: This charge is for natural gas used by your household or business and is measured in dekatherms (Dkt). Regulated supply charges on your NorthWestern Energy bill are set by the Montana Public Service Commission (PSC). However, you may choose an alternative natural gas supplier. If you choose an alternative supplier, the price the supplier charges will be unregulated. Supply makes up about 34 percent of the typical residential NorthWestern Energy natural gas customer's bill under current rates approved by the PSC. Suppliers must be licensed by the PSC and must abide by customer protection rules.

Supply - Energy (Electric): This charge is for electricity used by your household or business and is measured in kilowatt hours (kWh). Regulated supply charges on your NorthWestern Energy bill are set by the Montana Public Service Commission (PSC).

Total: This is the total electricity bill based upon the inputs from above. If you entered the energy usage from a recent NorthWestern Energy billing statement along with the appropriate month, this total should match the "Amount" listed on the appropriate "Type of Service" line. Note: In months of rate adjustments, the unbundled bill worksheet may not match your actual bill because rate changes may have taken place between meter read dates.

Transmission/Transportation Charges: Regulated charges for moving electricity and natural gas from the supplier to the local pipes and wires near your home or business. These costs may be affected by your choice of supplier and the location from which they get their supply.

Unbundled Gas Bill with Choice: By entering the supply price provided by a competitive supplier, you can see how moving to choice will compare your "bundled" bill. Only the supply portion of the bill is affected by this choice.

Universal Systems Benefits Charge (USBC): The Universal Systems Benefits Charge funds public purpose programs such as low-income bill assistance and weatherization, energy efficiency programs, and the development of renewable energy resources. This charge is not affected by your choice of supplier and is set by the PSC.