(1) "AFDC" means aid to families with dependent children administered under the social welfare act, Act No. 280 of the Public Acts of 1939, being sections 400.1 to 400.121 of the Michigan Compiled Laws.

    (2) "Annual consumption cap" means the maximum level of natural gas use by an assisted household for which the department is responsible for payment.

    (3) "Assisted household" means a person who receives a heating allowance.

    (4) "Calculated consumption level" means the calculated level of energy consumption established for a dwelling by the provider utility and authorized by the department.

    (5) "Cost settlement" means the reconciliation process undertaken pursuant to sections 12 and 13.