Generation: Production of electricity. The power plants that produce the electricity. Generation companies provide energy to Electric Generation Suppliers, who in turn supply customers. This energy can be generated from a variety of fuels including coal, natural gas, hydro, wind, nuclear, solar and is measured in kilowatt-hours (kWh) or megawatt hours (MWh).

Transmission: Interconnecting electric lines which move high voltage electricity from a generation facility to the distribution lines of an electric distribution company in your local area. This is still a regulated service where independent system operators (e.g., PJM) or the local utility manages the system and ensures reliability.

Distribution: The local wires, transformers, substations and other equipment used to deliver electricity to end-use consumers from the high-voltage transmission lines. The infrastructure made up of poles and wires needed to deliver electric service to your business. It is maintained by your local distribution company and is regulated by the state Public Utility Commission.