BEECHER - NAWC

Water ComparedGlossaryValue-of-service pricing. Method ofpricing that considers the perceived valueof the service and not simply the cost ofthe service.Vertical integration. The utility companyperforms all major utility services for itscustomers, including production,transforming, transmittal, and distribution.Monopoly utilities in the past frequentlyprovided vertical service; with increasingcompetition, rates for component parts ofservices are being disaggregated (orunbundled) and offered separately.Wellhead price. The price received by theproducer of oil or gas for sales takingeffect at the oil or gas well (that is, thesource of supply).Wheeling. Movement of electricity on thetransmission system of one utility forsomeone other than that utility;transmission for others.Wholesale wheeling. Movement ofelectricity on the transmission system froma power generator to a reseller.Source: Adapted in part from National Association of Regulatory Utility Commissioners, NARUC Compilationof Utility Regulatory Policy, 1994-1995. Washington, D.C.: NARUC, 1996. See also, "The Language ofElectric Industry Restructuring," Restructuring Facts (Rosemead, CA: Edison International, July 1997) andIndiana Regulatory Utility Commission, Regflex Report (http://www.ai.orgliurc/report!regflex/gas/m-9.htrnl).The author gratefully acknowledges the assistance of Mr. Robert Burns, National Regulatory Research Institute,who reviewed a draft of this glossary.NAWC 162 September 1998