Losses that result from the heating effect of current as it flows through wires to travel from the generation facility to the customer. Because of losses, the electricity produced by the utility is greater than the electricity that shows up on the customer bills.

The losses that result from inherent resistance in electrical conductors and transformation inefficiencies in distribution transformers in a transmission and distribution network.

Losses that result from the friction that energy must overcome as it moves through wires to travel from the generation facility to the consumer. Because of losses, the demand produced by the utility is greater than the demand that shows up on the consumer bills.