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February 1, 2026 |

Coming to Terms with Electricity

Like many fields of knowledge, the electric power industry is full of terms and acronyms that can be difficult for non-experts to understand. If you’re looking to gain a better understanding of electrical terminology, this guide to electric system lingo can help power your industry knowledge.

Amperage (amps). The amount of electrical current flowing through a circuit, or the maximum amount of current that a circuit can safely handle.

Circuit. A path for transmitting electric current. Every circuit includes a power source (generator), an energy-using device (such as lights or motors), and a connecting wire or power line.

Current. The flow of electric charge through a circuit. Direct-current (DC) moves continuously in one direction. Alternating current (AC) changes direction 60 times per second.

Demand. Demand is the amount of power a home or business is using at any given time. A 10 kW (10,000-watt) motor draws 10,000 watts of power at any given time while it’s running at full speed.

Distribution. The final stage of the delivery of power. A distribution system includes substations, power lines, transformers, and other equipment that deliver to consumers at the proper voltage. (Our cooperative is an electric distribution cooperative!)

Generation. Electricity is created by a generator, a device that converts some form of energy into electricity. Utility-scale generators utilize fossil fuels, hydropower, solar energy, wind energy, and nuclear reactions.

Grid. A network of power plants, substations, transformers, power lines, and other equipment that delivers electricity from the source of generation to consumers.

Ground. A common return path for electric current in a circuit. Exposed conductive parts of electrical equipment are connected to ground to protect users from potential shock hazard.

Kilowatt (kW). A kilowatt is equal to 1,000 watts of power and is a measure of the rate of electricity generation or consumption.

Kilowatt-hour (kWh). A measure of the amount of electricity a device uses when it’s running. If a device uses 1,000 watts over an hour, that’s a kilowatt-hour.

Phase. The distribution of an electrical load in a circuit. Single-phase circuits have one power wire and one neutral wire. Three-phase circuits have three power wires carrying the load. Because voltage peaks and dips in a cycle, single-phase power supply isn’t consistent. Three-phase circuits separate the peaks and dips, delivering power at a constant rate.

Power factor. The difference between real power (what electric devices use to operate) and apparent power (additional magnetic power required by some devices). Expressed between 0 and 1, a low power factor indicates that more apparent power is being used.

Smart grid. A set of advanced technologies — such as smart meters, sensors, microgrids, and energy storage — designed to improve grid connectivity, efficiency, and reliability.

Substation. A set of equipment that increases power voltage for transmission or reduces voltage for distribution to consumers.

Transformer. A device that transfers electric current from one circuit to another, either increasing (stepping up) or reducing (stepping down) voltage.

Transmission. The initial stage of power delivery. Transmission lines carry extremely high-voltage power over long distances to distribution substations.

Voltage. The pressure from a power source that pushes current through a conductor, such as a power line, is measured in volts (V).

Watt. A unit of electric power that measures the rate at which energy is expended per unit of time. A 40-watt lightbulb draws 40 watts of power at any given time.

See this glossary of electric industry terms from the U.S. Energy Information Administration for more information.