Glossary

A B C D E F G H I K L M N O P Q R S T U V W

A

Access Charges

A fee paid by a user to a utility for the ability to send or receive electricity or natural gas through its transmission or distribution systems.

Acid Rain

Also called acid precipitation or acid deposition, acid rain is precipitation containing harmful amounts of nitric and sulfuric acids formed primarily by nitrogen oxides and sulfur oxides released into the atmosphere when fossil fuels are burned. It can be wet precipitation (rain, snow, or fog) or dry precipitation (absorbed gaseous and particulate matter, aerosol particles or dust). The term pH is a measure of acidity or alkalinity and ranges from 0 to 14. A pH measurement of 7 is regarded as neutral. Measurements below 7 indicate increased acidity, while those above indicate increased alkalinity. Acid rain has a pH below 5.6. Normal rain has a pH of about 5.6, which is slightly acidic.

Aggregator

A buying organization that bargains for electricity or natural gas services by negotiating lower prices for groups of customers.

Ampere

The unit of measurement of electrical current produced in a circuit by 1 volt acting through a resistance of 1 ohm.

Anthracite

A hard, black lustrous coal, often referred to as hard coal. It contains a high fixed carbon and ash content and is low in volatile matter. It is the highest rank of economically usable coal. The moisture content generally is less than 15 percent. It is a non-coking coal. Anthracite contains approximately 22 to 28 million Btu per ton.

Arb

Short for arbitrage. A purchase in one market for sale in another at a higher price.

Ash

Impurities consisting of silica, iron, alumina, and other noncombustible matter that are contained in coal.

Asset-Backed Player

A company that has generation capability and can sell excess power through its marketing group.

Avoided Cost

A cost that a utility is spared from incurring. For electric utilities, this is the cost they would have paid to build or generate power if they didn't purchase electricity from another party or pool.

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B

Barrel

(Bbl) A unit of volume for crude oil and petroleum products equal to 42 U.S. gallons.

Baseload

The minimum amount of electric power delivered or required over a given period of time at a steady rate.

Baseload Capacity

The generating equipment normally operated to serve loads on an around-the-clock basis.

Baseload Plant

A plant, usually housing high efficiency steam-electric units, which is normally operated to take all or part of the minimum load of a system, and which consequently produces electricity at an essentially constant rate and runs continuously. These units are operated to maximize system mechanical and thermal efficiency and minimize system operating costs.

Basic Services

Necessary for the physical delivery of service, including generation, transmission and distribution. The monthly customer charge and the transition charge, are also basic service charges.

Bcf

The abbreviation for 1 billion cubic feet.

Biomass Energy

Waste heat harnessed by waste-to-energy plants for generating electricity or heating buildings. Among energy sources referred to as biofuels is garbage. About 15% of municipal solid waste, is burned.

Bituminous Coal

Bituminous coal is the most common coal. It is dense, black, often with well defined bands of bright and dull materials. Its moisture content usually is less than 20 percent. It is used for generating electricity, making coke, and space heating. The contents of subbituminous and bituminous coal range from 16 to 24 million Btu per ton and from 19 to 30 million Btu per ton, respectively.

Boiler

A device for generating steam for power, processing, or heating purposes or for producing hot water for heating purposes or hot water supply. Heat from an external combustion source is transmitted to a fluid contained within the tubes in the boiler shell. This fluid is delivered to an end-use at a desired pressure, temperature, and quality.

British Thermal Unit

(BTU) A standard unit for measuring the quantity of heat needed to raise the temperature of 1 pound of water by 1 degree Fahrenheit at or near 39.2 degrees Fahrenheit.

Brokers

Arrange a deal between a buyer and seller, but never own the power.

Butane

A normally gaseous hydrocarbon which is extracted from natural gas or refinery gas streams. It is used as household fuel, propellant and refrigerant.

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C

Capability

The maximum load that a generating unit, generating station, or other electrical apparatus can carry under specified conditions for a given period of time without exceeding approved limits of temperature and stress.

Capacity

An amount of electricity that would be available from a generating unit, utility or system. Capacity is valued in units of energy such as megawatts for electrical power or cubic feet for natural gas.

Circuit

A conductor or a system of conductors through which electric current flows.

Coal

A black or brownish/black solid, combustible substance formed by the partial decomposition of vegetable matter without access to air. Types of coal are anthracite, subanthracite, bituminous, subbituminous, and lignite; the categories are based on fixed carbon, volatile matter, coking properties, and heating value. The contents of subbituminous and bituminous coal range from 16 to 24 million Btu per ton and from 19 to 30 million Btu per ton, respectively. Anthracite contains approximately 22 to 28 million Btu per ton.

Cogeneration

A source that generates electricity and also provides steam or other energy for industrial or commercial uses.

Cogenerator

A generating facility that produces electricity and another form of useful thermal energy (such as heat or steam) used for industrial, commercial, heating, or cooling purposes. To receive status as a qualifying facility (QF) under the Public Utility Regulatory Policies Act (PURPA), the facility must produce electric energy and another form of useful thermal energy through the sequential use of energy, and meet certain ownership, operating, and efficiency criteria established by the Federal Energy Regulatory Commission (FERC).

Coke

Coal from which most gases have been removed by heating. It burns with intense heat and little smoke, and is used as an industrial fuel. A solid residue left after the distillation of petroleum or other liquid hydrocarbons.

Combined Cycle

An electric generating technology in which electricity is produced from otherwise lost waste heat exiting from one more gas (combustion) turbines. The exiting heat is routed to a conventional boiler or to a heat recovery steam generator for use by a steam turbine in the production of electricity. This process increases the efficiency of the electric generating unit.

Combined Cycle Unit

An electric generating unit that consists of one or more combustion turbines and one or more boilers with a portion of the required energy input to the boiler(s) provided by the exhaust gas of the combustion turbine(s).

Combustion Turbine

An internal combustion engine has one or more cylinders in which the process of combustion takes place, converting energy released from the rapid burning of a fuel-air mixture into mechanical energy. Diesel or gas-fired engines are the principal types used in electric plants. The plant is usually operated during periods of high demand for electricity.

Commercial

The commercial sector is generally defined as non-manufacturing business establishments, including hotels, motels, restaurants, wholesale businesses, retail stores, and health, social, and educational institutions. The utility may classify commercial service as all consumers whose demand or annual use exceeds some specified limit. The limit may be set by the utility based on the rate schedule of the utility.

Commercial Operation

Commercial operation begins when control of the loading of the generator is turned over to the system dispatcher.

Compact Fluorescent Lighting

(CFL) Compact fluorescents are an efficient form of lighting; CFL bulbs use one-quarter to one-third as much electricity to give the same light output as a standard incandescent bulb while creating much less heat, and last up to 10 times as long as a standard incandescent light (10,000 vs. 1,000 hours).

Condensing Boiler

Condensing furnaces and boilers are the most energy efficient units on the market today. The combustion process produces gas by-products that include water vapor and carbon dioxide. In a conventional heating system, these by-products are vented out of the house. Condensing systems cool the combustion gases to the point that water condenses and the process releases additional heat that is captured and distributed to the home. Condensing gas furnaces are generally 10-15% more efficient than conventional units.

Condensing Furnace

Condensing furnaces and boilers are the most energy efficient units on the market today. The combustion process produces gas by-products that include water vapor and carbon dioxide. In a conventional heating system, these by-products are vented out of the house. Condensing systems cool the combustion gases to the point that water condenses and the process releases additional heat that is captured and distributed to the home. Condensing gas furnaces are generally 10-15% more efficient than conventional units.

Connection

The physical connection (e.g. transmission lines, transformers, switch gear, etc.) between two electric systems permitting the transfer of electric energy in one or both directions.

Contract Price

Price of fuels marketed on a contract basis covering a period of one or more years.

Contract Receipts

Purchases based on a negotiated agreement that generally covers a period of one or more years.

Cooperative Electric Utility

An electric utility legally established to be owned by and operated for the benefit of those using its service. The utility company will generate, transmit, and/or distribute supplies of electric energy to a specified area not being serviced by another utility. Such ventures are generally exempt from Federal income tax laws. Most electric cooperatives have been initially financed by the Rural Electrification Administration, U.S. Department of Agriculture.

Crude Oil

A naturally occurring, oily, flammable liquid composed principally of hydrocarbons. Crude oil is occasionally found in springs or pools but usually is drilled from wells beneath the earth's surface.

Customer Choice

One of the terms, another being retail choice, to describe a competitive market where energy consumers are given a choice of energy supplier.

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D

Delivery Charge

The component of an energy bill covering the cost of delivering electricity or gas.

Demand

The instantaneous electric energy use, either of a single customer or system-wide. Also known as load.

Demand Charge

The portion of a gas or transportation charge that reflects a customer's contract requirements. Usually a set monthly fee, based on contract requirements.

Demand-Side Management

Utility activities designed to help customers use electricity more efficiently.

Deregulation

The process of removing regulations or other barriers that may restrict an industry.

Direct Load Control

Refers to program activities that can interrupt consumer load at the time of annual peak load by direct control of the utility system operator by interrupting power supply to individual appliances or equipment on consumer premises. This type of control usually involves residential consumers. Direct Load Control excludes Interruptible Load and Other Load Management effects.

Dispatch Rate

A Pennsylvania-New Jersey-Maryland Interconnection control signal that directs generating units in the pool to increase or decrease their output to meet demand.

Distillate Fuel Oil

A general classification for one of the petroleum products produced in conventional distillation operations. It is used primarily for space heating, diesel engine fuel, and electric power generation.

Distribution

The local wires, transformers, substations and other equipment used to deliver electricity to end-use consumers from the high-voltage transmission lines. Distribution charges are Public Utility Commission-regulated.

Distribution Loss

Electric energy lost due to the distribution of electricity. Much of the loss is thermal in nature due to the electrical resistance of the transmission wire.

Distribution System

The portion of an electric system that is dedicated to delivering electric energy to an end user.

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E

Electric Current

A flow of electrons in an electrical conductor. The strength or rate of movement of the electricity is measured in amperes.

Electric Demand

The rate at which electric energy is delivered to or by a system, part of a system or piece of equipment, at a given instant or averaged over any designated period of time.

Electric Distribution Company

(EDC) Owner of the power lines and equipment necessary to deliver purchased electricity to the customer.

Electric Generation Supplier

(EGS) A person or corporation, generator, broker, marketer, aggregator or other entity, that sells electricity using the transmission or distribution facilities of an electric distribution company (EDC).

Electric Rate Schedule

A statement of the electric rate and the terms and conditions governing its application, including attendant contract terms and conditions that have been accepted by a regulatory body with appropriate oversight authority.

Electric System

Physically connected generation, transmission, and distribution facilities operated as an integrated unit under one central management, or operating supervision.

Electric Utility

A corporation, person, agency, authority, or other legal entity or instrumentality that owns and/or operates facilities within the United States, its territories, or Puerto Rico for the generation, transmission, distribution, or sale of electric energy primarily for use by the public and files forms listed in the Code of Federal Regulations, Title 18, Part 141. Facilities that qualify as cogenerators or small power producers under the Public Utility Regulatory Policies Act (PURPA) are not considered electric utilities.

Energy

The capacity for doing work as measured by the capability of doing work (potential energy) or the conversion of this capability to motion (kinetic energy). Energy has several forms, some of which are easily convertible and can be changed to another form useful for work. Most of the world's convertible energy comes from fossil fuels that are burned to produce heat that is then used as a transfer medium to mechanical or other means in order to accomplish tasks. Electrical energy is usually measured in kilowatt-hours, while heat energy is usually measured in British thermal units.

Energy Charge

That portion of the charge for electric service based upon the electric energy (kWh) consumed or billed.

Energy Deliveries

Energy generated by one electric utility system and delivered to another system through one or more transmission lines.

Energy Efficiency

Refers to programs that are aimed at reducing the energy used by specific end-use devices and systems, typically without affecting the services provided. Such savings are generally achieved by substituting technically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity.

Energy Guide Label

By law, most new appliances have to carry Energy Guide labels which provide an estimate of how much energy the appliance will use in one year - based on average household use patterns, or the energy efficiency rating of the appliance. Each label also has a bar scale, showing the range of efficiencies for all similar appliances and an arrow, indicating where in the range this model falls.

Energy Marketer

An organization who arranges deals to sell electricity or natural gas for a customer and may provide other services. In the electricity market they may be referred to as Power Marketers.

Energy Service Company

(ESCO) A business that installs energy efficient and other demand side management measures in facilities.

Energy Source

The primary source that provides the power that is converted to electricity through chemical, mechanical, or other means. Energy sources include coal, petroleum and petroleum products, gas, water, uranium, wind, sunlight, geothermal, and other sources.

Energy Star

A set of voluntary energy-efficiency programs, sponsored by the U.S. Environmental Protection Agency and the U.S. Department of Energy. ENERGY STAR sets standards for, and labels, energy efficient products and sets standards of energy efficiency for homes and businesses.

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F

Federal Energy Regulation Commission

(FERC) The federal agency within the Department of Energy that regulates the price, terms, and conditions of energy sold through interstate commerce and all transmission services, including electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, oil pipeline rates, and gas pipeline certification.

Federal Power Act

Enacted in 1920 and amended in 1935, the Act consists of three parts. The first part incorporated the Federal Water Power Act administered by the former Federal Power Commission, whose activities were confined almost entirely to licensing non-Federal hydroelectric projects. Parts II and III were added with the passage of the Public Utility Act. These parts extended the Act's jurisdiction to include regulating the interstate transmission of electrical energy and rates for its sale as wholesale in interstate commerce. The Federal Energy Regulatory Commission is now charged with the administration of this law.

Federal Power Commission

The predecessor agency of the Federal Energy Regulatory Commission. The Federal Power Commission (FPC) was created by an Act of Congress under the Federal Water Power Act on June 10, 1920. It was charged originally with regulating the electric power and natural gas industries. The FPC was abolished on September 20, 1977, when the Department of Energy was created. The functions of the FPC were divided between the Department of Energy and the Federal Energy Regulatory Commission.

Firm Electric Service

The delivery of electricity by a company on a continuous basis. Residential and smaller commercial customers generally use this service.

Firm Gas

Gas sold on a continuous and generally long-term contract.

Firm Natural Gas

The delivery of gas to a customer on a continuous basis. Residential and smaller commercial customers generally use this service.

Firm Power

Power or power producing capacity intended to be available at all times during the period covered by a guaranteed commitment to deliver, even under adverse conditions.

Flue Gas Desulfurization Unit

Also known as a scrubber. Equipment used to remove sulfur oxides from the combustion gases of a boiler plant before discharge to the atmosphere. Chemicals, such as lime, are used as the scrubbing media.

Flue Gas Particulate Collectors

Equipment used to remove fly ash from the combustion gases of a boiler plant before discharge to the atmosphere. Particulate collectors include electrostatic precipitators, mechanical collectors (cyclones), fabric filters (baghouses), and wet scrubbers.

Fly Ash

Particle matter from coal ash in which the particle diameter is less than 1 x 10-4 meter. This is removed from the flue gas using flue gas particulate collectors such as fabric filters and electrostatic precipitators.

Forced Outage

The net capability of main generating units that are available for load for emergency reasons.

Fossil Fuels

Any naturally occurring organic fuel, such as petroleum, coal, and natural gas. These fuels are limited in total quantity and are non-renewable.

Fossil-Fuel Plant

A plant using coal, petroleum or gas as its source of energy.

Fuel

Any substance that can be burned to produce heat; also, materials that can fission in a chain reaction to produce heat.

Fuel Consumption

The amount of fuel used for gross generation, providing standby service, start-up and/or flame stabilization.

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G

Gas

A fuel burned under boilers and by internal combustion engines for electric generation. These include natural, manufactured and waste gas.

Gas Turbine Plant

A plant in which the prime mover is a gas turbine. A gas turbine consists typically of an axial-flow air compressor, one or more combustion chambers, where liquid or gaseous fuel is burned and the hot gases are passed to the turbine and where the hot gases expand to drive the generator and are then used to run the compressor.

Gasohol

A blend of finished motor gasoline (leaded or unleaded) and alcohol (generally ethanol but sometimes methanol) in which 10 percent or more of the product is alcohol.

Generating Unit

Any combination of physically connected generator(s), reactor(s), boiler(s), combustion turbine(s) or other prime mover(s) operated together to produce electric power.

Generation

The process of producing electric energy by transforming other forms of energy; also, the amount of electric energy produced, expressed in watt-hours (Wh).

Generation Charges

The component of an energy bill covering the cost of supplying the energy. For gas, this is typically referred to as the Gas Charge.

Generator

A machine that converts mechanical energy into electrical energy.

Geothermal Plant

A plant in which the prime mover is a steam turbine. The turbine is driven either by steam produced from hot water or by natural steam that derives its energy from heat found in rocks or fluids at various depths beneath the surface of the earth. The energy is extracted by drilling and/or pumping.

Geothermal Power

Electricity derived from heat found under the earth's surface.

Gigawatt

(GW) One billion watts.

Gigawatthour

(GWh) One billion watt hours.

Green Power

Green Power is a term used to describe electricity produced by sources that are less harmful to the environment than fossil fuels. While there is no strict definition of Green Power, generally renewable sources such as solar, wind power, geothermal, biomass, and small hydroelectric are considered Green Power sources.

Greenhouse Effect

The increasing mean global surface temperature of the earth caused by gases in the atmosphere (including carbon dioxide, methane, nitrous oxide, ozone, and chlorofluorocarbon). The greenhouse effect allows solar radiation to penetrate but absorbs the infrared radiation returning to space.

Grid

The layout of an electrical distribution system.

Gross Generation

The total amount of electric energy produced by the generating units at a generating station or stations, measured at the generator terminals.

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H

H-axis Washing Machine

A front loading washing machine, long common in Europe but not in the US, that uses a tumble action washing method. These machines have been shown to use much less energy and water, and are reported to cause less wear and tear on clothes.

Heat Pumps

A heat and cooling source. Heat pumps extract heat from either the air or ground and transfer that heat by circulating a refrigerant through a cycle of alternating evaporation and condensation. The cycle can be reversed for cooling. The efficiency of an air source heat pump varies tremendously with climate while ground source heat pumps take advantage of stable ground temperatures to deliver consistent performance.

Heavy Oil

The fuel oils remaining after the lighter oils have been distilled off during the refining process. Except for start-up and flame stabilization, virtually all petroleum used in steam plants is heavy oil.

Hedging

A method by which a purchaser or producer of natural gas or electricity uses a derivative position to protect against adverse price movements in the cash market by locking in a price for future delivery.

Hourly Non-Firm Transmission Service

Point-to-point transmission that is scheduled and paid for on an as-available basis and is subject to interruption.

Hydroelectric Plant

A plant in which the turbine generators are driven by falling water.

Hydroelectric Power

Electricity generated by an electric power plant whose turbines are driven by falling water.

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I

Independent Power Producer

(IPP) A company other than a utility that generates electricity. Also referred to as a non-utility supplier.

Independent System Operator

(ISO) An organization created to control the operation of the power system, monitor reliability and coordinate the supply of electricity in a region.

Industrial

The industrial sector is generally defined as manufacturing, construction, mining, agriculture, fishing, and forestry establishments. The utility may classify industrial service using the Standard Industrial Classification codes, or based on demand or annual usage exceeding some specified limit. The limit may be set by the utility based on the rate schedule of the utility.

Interruptible Electric Service

The delivery of electricity to a customer that may be interrupted by the utility generally because of system supply or capacity limitations.

Interruptible Gas

Gas sold to customers with a provision that permits curtailment or cessation of service at the discretion of the distributing company under certain circumstances, as specified in the service contract.

Interruptible Load

Refers to program activities that, in accordance with contractual arrangements, can interrupt consumer load at times of seasonal peak load by direct control of the utility system operator or by action of the consumer at the direct request of the system operator. It usually involves commercial and industrial consumers. Interruptible Load as defined here is synonymous with Interruptible Demand and excludes Direct Load Control and Other Load Management.

Interruptible Natural Gas

The delivery of gas to a customer that may be interrupted by the utility generally because of system supply or capacity limitations.

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K

Kerosene

Light hydrocarbon distillate. Includes vaporizing oil for use in reciprocating engines (primarily tractors), lamp oil, and kerosene and heating oil.

Kilowatt

(kW) One thousand watts, where a watt is a unit of electrical power calculated as the rate of energy transfer equivalent to one ampere flowing under a pressure of one volt. Ten 100 watt light bulbs use one kW of electric power.

Kilowatt-Hour

(kWh) The basic unit of electric energy for which most customers are charged. The amount of electricity used by ten 100-watt light bulbs left on for one hour.

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L

Light Oil

Lighter fuel oils distilled off during the refining process. Virtually all petroleum used in internal combustion and gas turbine engines is light oil.

Lignite

A young coal used almost exclusively for electric power generation. It is brownish black in color and has a high moisture content, sometimes as high as 45 percent, and a high ash content. It tends to disintegrate when exposed to the weather. Also referred to as brown coal.

Liquefied Natural Gas

(LNG) Conventional natural gas which is liquefied by reducing its temperature to minus 260 degrees Fahrenheit at atmospheric pressure.

Liquefied Petroleum Gases

(LPG) Ethane, ethylene, propane, propylene, normal butane, butylene, and isobutane produced at refineries or natural gas processing plants, including plants that fractionate raw natural gas plant liquids.

Load

The instantaneous electric energy use, either of a single customer or system-wide. Also known as demand.

Load Management

Utility activities designed to influence the timing and amount of electricity that customers may use.

Load Shifting

A type of load management that shifts use from peak to off-peak periods.

Local Distribution Company

(LDC) The utility company that provides the distribution, customer and energy services for natural gas and electricity.

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M

Market Clearing Price

(MCP) The price that sellers will receive and buyers will pay at any time in the spot market.

Marketers

Buy and sell power, then arrange for its delivery.

Megawatt

(MW) One million watts.

Megawatt-hour

(MWh) One million watt-hours

Merchant Plant

An electric generating facility, not owned by a regulated utility, that sells energy on the open market.

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N

Native Load Customers

The wholesale and retail customers on whose behalf the Transmission Provider, by statute, franchise, regulatory requirements, or contract, has undertaken an obligation to construct and operate the Transmission Provider's system to meet the reliable electric needs of such customers.

Natural Gas

A mixture of hydrocarbon compounds, primarily methane and small quantities of various non-hydrocarbons existing in a gaseous phase or in solution with crude oil in natural underground reservoirs at reservoir conditions.

Natural Gas Act

(NGA) Federal law enacted in 1938 that established the Federal Energy Regulation's authority to regulate interstate pipelines.

Natural Gas Policy Act

(NGPA) Federal law that updated the Natural Gas Act (NGA) and set guidelines for deregulation of new gas supplies and continued regulation of old supplies.

Net Generation

Gross generation less the electric energy consumed at the generating station for station use.

New Gas

Gas produced from new formations and fields or drilling after April 1977.

Non-Basic Services

Not required for the physical delivery of electric service

Non-Firm Power

Power or power producing capacity supplied or available under a commitment having limited or no assured availability.

Non-Firm Transmission Service

Point-to-point transmission service that is reserved and/or scheduled on an as-available basis and is subject to interruption.

Non-Utility Generator

A corporation, person, agency, authority, or other legal entity or instrumentality that owns electric generating capacity and is not an electric utility. Non-utility power producers include qualifying cogenerators, qualifying small power producers, and other non-utility generators (including independent power producers) without a designated franchised service area.

Non-Utility Supplier

A company other than a utility that provides natural gas or electricity. Also referred to as independent power producer.

North American Electric Reliability Council

(NERC) A council formed in 1968 by the electric utility industry to promote the reliability and adequacy of bulk power supply in the electric utility systems of North America. NERC consists of ten regional reliability councils and encompasses essentially all the power regions of the contiguous United States, Canada, and Mexico. The NERC Regions are: ASCC - Alaskan System Coordination Council; ECAR - East Central Area Reliability Coordination Agreement; ERCOT - Electric Reliability Council of Texas; MAIN - Mid-America Interconnected Network; MAAC - Mid-Atlantic Area Council; MAPP - Mid-Continent Area Power Pool; NPCC - Northeast Power Coordinating Council; SERC - Southeastern Electric Reliability Council; SPP - Southwest Power Pool; WSCC - Western Systems Coordinating Council.

Nuclear Fuel

Fissionable materials that have been enriched to such a composition that, when placed in a nuclear reactor, will support a self-sustaining fission chain reaction, producing heat in a controlled manner for process use.

Nuclear Power

Electricity generated by nuclear reactors of various types such as heavy water, light water, and boiling water.

Nuclear Power Plant

A facility in which heat produced in a reactor by nuclear fission is used to drive a steam turbine.

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O

Off-Peak

A period of time when there is a low demand for electricity on a utility's generation system.

Off-Peak Natural Gas

Also called Seasonal Natural Gas. The delivery of gas, firm or interruptible, sold only during certain times of the year, generally when there are not high system demands.

Ohm

The unit of measurement of electrical resistance. The resistance of a circuit in which a potential difference of one volt produces a current of one ampere.

On-Peak

A period of time when there is a high demand for electricity on a utility's generation system.

Operating Reserve Margin

The amount of unused available capability of an electric power system at peak load for a utility system as a percentage of total capability.

Outage

The period during which a generating unit, transmission line, or other facility is out of service.

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P

Peak Load

The greatest demand that occurred during a specific period of time. Also known as peak demand.

Peak Load Plant

A plant usually housing old, low-efficiency steam units, gas turbines, diesels, or pumped storage hydroelectric equipment normally used during the peak-load periods. Also known as a peaking plant.

Peaking Capacity

Capacity of generating equipment normally reserved for operation during the hours of highest daily, weekly, or seasonal loads. Some generating equipment may be operated at certain times as peaking capacity and at other times to serve loads on an around-the-clock basis.

Petroleum

A generic term applied to oil and oil products in all forms, such as crude oil, lease condensate, unfinished oils, refined petroleum products, natural gas plant liquids, and non-hydrocarbon compounds blended into finished petroleum products. A mixture of hydrocarbons existing in the liquid state found in natural underground reservoirs often associated with gas.

Plant

A facility at which are located prime movers, electric generators, and auxiliary equipment for converting mechanical, chemical, and/or nuclear energy into electric energy. A plant may contain more than one type of prime mover. Electric utility plants exclude facilities that satisfy the definition of a qualifying facility under the Public Utility Regulatory Policies Act of 1978.

Point of Delivery

Point of interconnection on the Transmission Provider's Transmission System where capacity and/or energy transmitted by the Transmission Provider will be made available to the Receiving Party. The Point of Delivery shall be specified in the Service Agreement.

Point of Receipt

Point of interconnection on the Transmission Provider's Transmission System where capacity and/or energy will be made available to the Transmission Provider by the Delivering Party. The Point of Delivery shall be specified in the Service Agreement.

Power

The rate at which energy is transferred. Electrical energy is usually measured in watts. Also used for a measurement of capacity.

Power Exchange

An organization established to facilitate the trading of and creation of a spot market for electricity. In some regions the Power Exchange has been incorporated in the Independent System Operator (ISO).

Power Grid

The network of transmission lines that link all generating plants in a region with local distribution networks to help maximize service reliability.

Power Marketers

Business entities engaged in buying and selling electricity, but do not own generating or transmission facilities. Power marketers, as opposed to brokers, take ownership of the electricity and are involved in interstate trade. These entities file with Federal Energy Regulatory Commission for status as a power marketer.

Power Pool

An association of two or more interconnected electric systems having an agreement to coordinate operations and planning for improved reliability and efficiencies.

Propane

A normally gaseous hydrocarbon. It is a colorless paraffinic gas that boils at a temperature of 143.67 degrees Fahrenheit. It is extracted from natural gas or refinery gas streams and used for home heating and cooking.

Proven Reserves

The estimated quantities of fossil fuels, which analysis demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.

Public Utilities Regulatory Policy Act

(PURPA) A 1978 federal law that requires utilities to buy power from eligible cogeneration sources, small hydro or waste-fueled facilities, under contracts at an avoided cost rate. The utilities also must provide a backup supply of electricity to customers who choose self-generation.

Public Utility Commission

(PUC) The state regulatory agency that provides oversight, policy guidance and direction to electric public utilities.

Pumped Storage Hydroelectric Plant

A plant that usually generates electric energy during peak-load periods by using water previously pumped into an elevated storage reservoir during off-peak periods when excess generating capacity is available to do so. When additional generating capacity is needed, the water can be released from the reservoir through a conduit to turbine generators located in a power plant at a lower level.

Pure Pumped Storage Hydroelectric Plant

A plant that produces power only from water that has previously been pumped to an upper reservoir.

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Q

Qualifying Facility

(QF) A cogeneration or small power production facility that meets certain ownership, operating, and efficiency criteria established by the Federal Energy Regulatory Commission (FERC) pursuant to the Public Utility Regulatory Policies Act (PURPA). Qualifying facilities are non-utility generators.

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R

Rate Base

The value of property used by the utility in providing service upon which that utility is permitted to earn a specified rate of return as established by a regulatory authority. The rate may be calculated by any one or a combination of the following accounting methods: fair value, prudent investment, reproduction cost, or original cost.

Ratemaking Authority

A utility commission's legal authority to fix, modify, approve, or disapprove rates, as determined by the powers given the commission by a State or Federal legislature

Regional Transmission Group

A voluntary organization of transmission owners, transmission users, and other entities approved by the Commission to efficiently coordinate transmission planning (and expansion), operation, and use on a regional (and interregional) basis.

Regulation

The government function of controlling or directing economic entities through the process of rulemaking and adjudication.

Renewable Energy

An energy source for generating electricity that is not based on fuels with limited reserves. Included are solar power, hydro-power, wind power, geothermal power, and tidal power.

Renewables

Resources used to generate electricity that are capable of being replaced naturally. Includes technologies such as solar photovoltaic energy, solar thermal energy, wind power, low-head hydro power, geothermal energy, landfill and mine-based methane gas, energy from waste and sustainable biomass energy.

Residential

The residential sector is defined as private household establishments that consume energy primarily for space heating, water heating, air conditioning, lighting, refrigeration, cooking, and clothes drying. The classification of an individual consumer's account, where the use is both residential and commercial, is based on principal use.

Residual Fuel Oil

Residual fuel oil is used for the production of electric power, space heating, vessel bunkering, and various industrial purposes.

Restructuring

The reorganization of traditional monopoly electric service to allow operations and charges to be separated or unbundled into generation, transmission, distribution and other services. This will permit customers to buy generation services from competing suppliers.

Retail

Sales covering electrical energy supplied for residential, commercial, and industrial end-use purposes. Other small classes, such as agriculture and street lighting, also are included in this category.

Retail Competition

A market that allows more than one energy provider to sell directly to customers and, where customers have the choice of buying from more than one provider.

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S

Sales

The amount of kilowatt-hours sold in a given period of time; usually grouped by classes of service, such as residential, commercial, industrial, and other. Other sales include public street and highway lighting, other sales to public authorities and railways, and interdepartmental sales.

Scheduled Outage

The shutdown of a generating unit, transmission line, or other facility, for inspection or maintenance, in accordance with an advance schedule.

Selective Catalytic Reduction Systems

(SCRs) Mechanical systems designed to remove nitrogen oxide from plant emissions. SCRs have no waste product. They break down nitrogen oxide into water and nitrogen, which makes up about 80 percent of the air we breathe.

Selective Catalytic Reduction systems

(SCRs) Mechanical systems designed to reduce nitrogen oxide emissions. SCRs have no waste product. The technology uses a catalyst to break down nitrogen oxide into nitrogen and water. Nitrogen makes up about 80 percent of the air we breathe.

Shopping Credit

Kilowatt-hour amount a consumer uses to compare prices and potential savings among generation suppliers.

Small Power Producer

(SPP) Under the Public Utility Regulatory Policies Act (PURPA), a small power production facility (or small power producer) generates electricity using waste, renewable (water, wind, and solar), or geothermal energy as a primary energy source. Fossil fuels can be used, but renewable resource must provide at least 75 percent of the total energy input.

Spinning Reserve

Reserve generating capacity running at a zero load and synchronized to the electric system.

Standard Industrial Classification

(SIC) A set of codes developed by the Office of Management and Budget, which categorizes business into groups with similar economic activities.

Stranded Costs

Also known as transition costs. Costs that a utility has an obligation to pay for (e.g., long-term contracts or payments on a generation plant) but may not be able to recover in a competitive market where rates are no longer set by regulatory bodies. They are considered a major hurdle to full deregulation and retail wheeling. In the gas industry, these became known as Gas Supply Realignment Costs (GSR).

Subbituminous Coal

Also called black lignite, is dull black and generally contains 20 to 30 percent moisture. The heat content of subbituminous coal ranges from 16 to 24 million Btu per ton as received and averages about 18 million Btu per ton. Mined in the western coal fields, it is used for generating electricity and space heating.

Substation

Facility equipment that switches, changes, or regulates electric voltage.

Sulfur

One of the elements present in varying quantities in coal which contributes to environmental degradation when coal is burned. In terms of sulfur content by weight, coal is generally classified as low (less than or equal to one percent), medium (greater than one percent and less than or equal to three percent), and high (greater than three percent).

Switching Station

Facility equipment used to tie together two or more electric circuits through switches. The switches are selectively arranged to permit a circuit to be disconnected, or to change the electric connection between the circuits.

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T

Therm

The standard unit for measuring the amount of gas used, defined as the volume of gas needed to generate 100,000 BTU's.

Time Of Use Pricing

(TOU) Rates that are designed to reflect changes in a utility's cost of providing service that change by season or time of day.

Transformer

An electrical device for changing the voltage of alternating current.

Transition Charges

Charges on every customer's utility bill designed to cover an electric utility's transition or stranded costs as the industry transitions to a competitive market. These charges are set by the Public Utility Commission.

Transmission

The movement or transfer of high-voltage electricity or natural gas over an interconnected group of lines or pipes and associated equipment between points of supply (generating facilities) and points at which it is transformed for delivery to consumers, or is delivered to other systems. Electric transmission is considered to end when the energy is transformed for distribution to the consumer.

Transmission Charges

Charges for moving high voltage electricity from a generation facility to the distribution lines of an electric distribution company.

Transmission Loss

Electric energy lost due to the transmission of electricity. Much of the loss is thermal in nature due to the electrical resistance of the transmission wire.

Transportation Customer

A customer who uses a utility's pipeline and distribution system but buys natural gas from a different supplier.

Turbine

A machine for generating rotary mechanical power from the energy of a stream of fluid (such as water, steam, or hot gas). Turbines convert the kinetic energy of fluids to mechanical energy through the principles of impulse and reaction, or a mixture of the two.

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U

Unbundling

The separation of the prices or services offered by a local distribution company's rates.

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V

Voltage Reduction

Any intentional reduction of system voltage by 3 percent or greater for reasons of maintaining the continuity of service of the bulk electric power supply system.

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W

Watt

The electrical unit of power. The rate of energy transfer equivalent to one ampere flowing under a pressure of one volt at unity power factor.

Watt-hour

(Wh) An electrical energy unit of measure equal to one watt of power supplied to, or taken from, an electric circuit steadily for one hour.

Wheeling

The transmission of electricity by a company that does not own or directly use the power to various customers. Wheeling service contracts can be established between two or more systems.

Wholesale Competition

A market that allows a distribution company to buy energy from a variety of sources, and where the energy producers would be able to sell to distribution companies.

Wholesale Electricity

Power that is bought and sold among utilities, non-utility generators and other wholesale entities, such as municipalities.

Wholesale Sales

Energy supplied to other electric utilities, cooperatives, municipals, and Federal and State electric agencies for resale to ultimate consumers.

Wind Power

Wind power has been used for many years to drive mills and water pumps. Although some of those uses continue, the most common commercial use of wind power today is for running turbines that generate electricity. Wind turbines are often set up in clusters, called wind farms, and the electricity generated is fed into the grid.

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