The breaking apart of the electric utility monopolies into their respective components: Generation, Transmission, Distribution and Metering. Generation is now a competitive market, transmission is managed by an ISO or RTO, and your old utility retains distribution, metering and maintenance functions.
The process of separating the total cost of electric or natural gas service into its functional parts. In the electric industry, this means separating the cost of electricity into (1) Production (generation), (2) Transmission (bulk movement of power), and (3) Distribution (local delivery, metering and billing services). Transmission and Distribution together are often referred to as "delivery". In the gas industry, unbundling the gas service separates costs for the gas (1) production (the natural gas commodity), (2) Transmission (bulk movement of gas from one region to another via interstate pipelines), and Distribution (the local delivery, metering and billing). For billing purposes, Midwest Energy combines production costs and upstream interstate pipeline costs into the Purchased Gas Adjustment.