Electric power industry glossary
Above-market
Cost - The cost of a service in excess of the price of
comparable services in the market.
Access Charge -
A
charge for a power supplier, or its customer, for access to a utility's
transmission or distribution system. It is a charge for the right to send
electricity over another's wires.
Actual Peak Load
Reductions - Reduction in annual peak load by consumers
who participate in a DSM program that reflect changes in demand.
Affiliate -
A
company that is controlled by another or that has the same owner as another
company.
Affiliated Power
Producer - A generating company that is affiliated with
a utility.
After-Market -
Broad
term that applies to any change after the original purchase, such as adding
equipment not a part of the original purchase. As applied to alternative
fueled vehicles, it refers to conversion devices or kits for conventional fuel
vehicles.
Aggregation -
The
process of organizing small groups, businesses or residential customer into a
larger, more effective bargaining unit that strengthens their purchasing power
with utilities.
Aggregator -
An
entity that puts together customers into a guying group for the purchase of a
commodity service. The vertically integrated investor owned utility, municipal
utilities and rural electric cooperatives perform this function in today's
power market. Other entities such as buyer cooperatives or brokers could
perform this function in a restructured power market.
Alaskan System
Coordination Council (ASCC) - One of the ten regional
reliability councils that make up the North American Electric Reliability
Council (NERC).
Allowance for Funds
Used During Construction (AFUD - Construction
activities may be financed from internally generated funds (primarily earnings
retained in the business), or from funds provided by other external sources
(short- and long-term debt). The allowance for funds used during construction
is intended to recognize the cost of these funds dedicated to construction
activities during the construction period. To arrive at the
"allowance", a common procedural method makes use of a formula that
is based on the assumption that short-term debt is the first source of
construction funds. The cost rate for short-term debt is based on current
costs. Since a utility plant is subject to depreciation, the allowance for
funds used during construction is recovered in the form of depreciation from
ratepayers over the service life of the plant to which it applies.
Alternating Current
(AC) - Flow of electricity that constantly changes
director between positive and negative sides. Almost all power produced by
electric utilities in the United States moves in current that shifts direction
at a rate of 60 times per second.
Ampere -
Unit
that measures electrical current in a circuit by 1 volt acting through a
resistance of 1 ohm.
Ancillary Services -
Services
necessary for the transmission of energy from resources to loads.
Annual Effects -
Effects
in energy use and peak load resulting from participation in DSM programs in
effect during a given period of time.
Annual Equivalent -
An
equal cash flow amount that occurs every year.
Annual Fuel
Utilization Efficiency - A measure of heating
efficiency, in consistent units, determined by applying the federal test
method for furnaces. This value is intended to represent the ratio of heat
transferred to the conditioned space by the fuel energy supplies over one
year.
Annual Maximum Demand
- The greatest of all demands of the electrical load
which occurred during a prescribed interval in a calendar year.
Annuity -
A
series of equal cash flows over a number of years.
Appliance Saturation -
The percentage of households or buildings in a service
area that have the type of equipment to which the demand-side technology
applies. For example, if 50 percent of the residential customers have a
central air conditioner, the appliance saturation is 50 percent.
Applicability Factor -
The percentage of end-use energy and demand used by a
technology to which the demand-side management (DSM) measure applies. For
example, the high-efficiency fluorescent lighting DSM measure applies to
fluorescent lighting but not all lighting. Applicability therefore represents
the percent of the lighting end-use attributable to fluorescence for which
there could be high-efficiency replacements installed.
Area Load -
The
total amount of electricity being used at a given point in time by all
consumers in a utility's service territory.
Attributes -
Attributes
are the outcomes by which the relative "goodness" of a particular
expansion plan is measured e.g. fuel usage. Some attributes, such as fuel
usage, are measured in well-defined parameters. Other attributes (e.g. public
perception of a technology) are more subjective. Attributes may be grouped in
several ways. Categories include financial, economic, performance, fuel usage,
environmental, and socio-economic. The attributes chosen must measure issues
that directly concern the utility and have an impact on its planning
objectives. Limiting the number of attributes reduces the complexity and cost
of a study.
Available but not
Needed Capability - Capability of generating units that
are operable but not necessary to carry load.
Average Cost -
The
revenue requirement of a utility divided by the utility's sales. Average cost
typically includes the costs of existing power plants, transmission, and
distribution lines, and other facilities used by a utility to serve its
customers. It also includes operations and maintenance, tax, and fuel
expenses.
Average Demand -
The
energy demand in a given geographical area over a period of time. For example,
the number of kilowatt-hours used in a 24-hour period, divided by 24, tells
the average demand for that period.
Average Revenue per
Kilowatt-hour - Revenue by sector and geographic area
calculated by dividing the monthly revenue by monthly sales.
Avoided Costs -
These
are costs that a utility avoids by purchasing power from an independent
producer rather than generating power themselves, purchasing power from
another source or constructing new power plants. A Public Utility Commission
calculates avoided costs for each utility, and these costs are the basis upon
which independent power producers are paid for the electricity they produce.
There are two parts to an avoided cost calculation: the avoided capacity cost
of constructing new power plants and the avoided energy cost of fuel and
operating and maintaining utility power plants.
Base Bill -
The
base bill is calculated by multiplying the rate from the electric rate by the
level of consumption.
Base Load -
The
minimum load experienced by an electric utility system over a given period of
time.
Base Load Unit -
A
generating unit that normally operates at a constant output to take all or
part of the base load of a system.
Base Rate -
The
portion of the total electric or gas rate covering the general costs of doing
business unrelated to fuel expenses.
Base Year -
The
first year of the period of analysis. The base year does not have to be the
current year.
Baseline Forecast -
A
prediction of future energy needs which does not take into account the likely
effects of new conservation programs that have not yet been started.
Baseload Capacity -
Generating
equipment operated to serve loads 24-hours per day.
Basic Service -
The
four charges for generation, transmission, distribution and transition that
all customers must pay in order to retail their electric service.
Bilateral Contract -
A
direct contract between the power producer and user or broker outside of a
centralized power pool.
Biomass -
Plant
materials and animal waste used as a source of fuel.
Blackout -
A
power loss affecting many electricity consumers over a large geographical area
for a significant period of time.
British Thermal Unit
(BTU) - The standard unit for measuring quantity of
heat energy. It is the amount of heat energy necessary to raise the
temperature of one pound of water one degree Fahrenheit.
Broadband
Communications - The result of utilities forming
partnerships to offer consumers "one-stop-shopping" for
energy-related and high-tech telecommunications services.
Broker -
A
retail agent who buys and sells power. The agent may also aggregate customers
and arrange for transmission, firming and other ancillary services as needed.
Brownout -
A
controlled power reduction in which the utility decreases the voltage on the
power lines, so customers receive weaker electric current. Brownouts can be
used if total power demand exceeds the maximum available supply. The typical
household does not notice the difference.
Bulk Power Market -
Wholesale
purchases and sales of electricity.
Bulk Power Supply -
Often
this term is used interchangeably with wholesale power supply. In broader
terms, it refers to the aggregate of electric generating plants, transmission
lines, and related equipment. The term may refer to those facilities within
one electric utility, or within a group of utilities in which the transmission
lines are interconnected.
Buy Through -
An
agreement between utility and customer to import power when the customer's
service would otherwise be interrupted.
Capability -
Maximum
load that a generating unit can carry without exceeding approved limits.
Capacitor -
This
is a device that helps improve the efficiency of the flow of electricity
through distribution lines by reducing energy losses. It is installed in
substations and on poles. Usually it is installed to correct an unwanted
condition in an electrical system
Capacity -
The
maximum load a generating unit, generating station, or other electrical
apparatus is rated to carry by the user or the manufacturer or can actually
carry under existing service conditions.
Capacity (Purchased) -
Energy available for purchase from outside the system.
Capacity Charge -
An
assessment on the amount of capacity being purchased.
Capacity Factor -
The
ratio of the average load on a machine or equipment for a period of time to
the capacity rating of the machine or equipment.
Capital Recovery
Factor (CRF) - A factor used to convert a lump sum
value to an annual equivalent.
Captive Customer -
A
customer who does not have realistic alternatives to buying power from the
local utility, even if that customer had the legal right to buy from
competitors.
Circuit -
Conductor
for electric current.
Cogeneration -
Production
of heat energy and electrical or mechanical power from the same fuel in the
same facility. A typical cogeneration facility produces electricity and steam
for industrial process use.
Cogenerator -
A
facility that produces electricity and/or other energy for heating and
cooling.
Coincidence Factor -
The
ratio of the coincident maximum demand of two or more loads to the sum of
their noncoincident maximum demands for a given period. The coincidence factor
is the reciprocal of the diversity factor and is always less than or equal to
one.
Coincidental Demand -
Two
or more demands that occur at the same time.
Coincidental Peak Load
- Two or more peak loads that occur at the same time.
Combined Cycle -
Similar
to the combustion turbine simple cycle, but includes a heat recovery steam
generator that extracts heat from the combustion turbine exhaust flow to
produce steam. This steam in turn powers a steam turbine engine.
Combined Cycle Plant -
An electric generating station that uses waste heat
from its gas turbines to produce steam for conventional steam turbines.
Combustion Turbine -
A
fossil-fuel-fired power plant that uses the conversion process known as the
Brayton cycle. The fuel, oil, or gas is combusted and drives a
turbine-generator.
Commercial Operation -
Commercial operation occurs when control of the
generator is turned over to the system dispatcher.
Commercialization -
Programs
or activities that increase the value or decrease the cost of integrating new
products or services into the electric sector.
Comparability -
When
a transmission owner provides access to transmission services at rates, terms
and conditions equal to those the owner incurs for its own use.
Competitive Bidding -
This
is a procedure that utilities use to select suppliers of new electric capacity
and energy. Under competitive bidding, an electric utility solicits bids from
prospective power generators to meet current or future power demands. When
offers from independent power producers began exceeding utility needs in the
mid-1908's, utilities and state regulators began using competitive bidding
systems to select more fairly among numerous supply alternatives.
Competitive Franchise
- A process whereby a municipality (or group of
municipalities) issues a franchise to supply electricity in the community to
the winner of a competitive bid process. Such franchises can be for bundled
electricity and transmission/distribution, or there can be separate franchises
for the supply of electricity services and the transmission and distribution
function. Franchises can be, but typically are not, exclusive licenses.
Competitive Transition
Charge (CTC) - A "nonbypassable" charge
generally placed on distribution services to recover utility costs incurred as
a result of restructuring (stranded costs - usually associated with generation
facilities and services) and not recoverable in other ways.
Comprehensive National
Energy Policy Act - Federal legislation in 1992 that
opened the U.S. electric utility industry to increase competition at the
wholesale level and left authority for retail competition to the states.
Conductor -
An
object or substance which conducts or leads electric current. A wire, cable,
busbar, rod, or tube can serve as a path for electricity to flow. The most
common conductor is an electrical wire.
Connection -
The
connection between two electrical systems that permit the transfer of energy.
Conservation -
A
foregoing or reduction of electric usage for the purpose of saving natural
energy resources and limiting peak demand in order to ultimately reduce the
capacity requirements for plant and equipment.
Consumer Education -
Efforts
to provide consumers with skills and knowledge to use their resources wisely
in the marketplace.
Consumption (Fuel) -
Amount
of fuel used for gross generation.
Contract Path -
The
most direct physical transmission tie between two interconnected entities.
When utility systems interchange power, the transfer is presumed to take place
across the "contract path" , notwithstanding the electric fact that
power flow in the network will distribute in accordance with network flow
conditions. This term can also mean to arrange for power transfer between
systems.
Contract Price -
Price
marketed on a contract basis for one or more years.
Contract Receipts -
Purchases
that cover at least one year.
Control Area -
A
power system or systems to which an automatic control is applied.
Converter -
Any
technology that changes the potential energy in fuel into a different form of
energy such as heat or motion. The term also is used to mean an apparatus that
changes the quantity or quality of electric energy.
Cooperative Electric
Utility - A utility established to be owned by and
operated for the benefit of those using its services.
Cross-subsidization -
This
refers to the transfer of assets or services from the regulated portion of an
electric utility to its unregulated affiliates to produce an unfair
competitive advantage. Also, cross-subsidization can refer to one rate class
(such as industrial customers) subsidizing the rates of another class (such as
residential customers).
Current (Electric) -
Flow
of electrons in an electric conductor.
Current Transformers -
These are used in conjunction with metering equipment.
They are designed to permit measurement of currents beyond the range of a
meter.
Customer Assistance
Programs - Alternative collection program set up
between a utility company and a customer that allows customers to pay utility
bills on a percentage-of-the-bill they owe or percentage-of-customer-income
instead of paying the full amount owed. These programs are for low-income
people who can't pay their bills. These customers must agree to make regular
monthly payments based on their new payment plans.
Customer Class -
A
distinction between users of electric energy. Customer class is usually
defined by usage patterns, usage levels, and conditions of service. Classes
are usually categorized generically by customer activity (e.g. residential,
commercial, industrial, agricultural, street lighting).
Customer Costs -
Costs
that are related to and vary with the number of customers. Customer costs
include meters, meter readers, or service equipment costs.
Customer Service
Charge - That portion of the customer's bill which
remains the same from month to month. The charge is determined separately from
the amount of energy used. It is based on the costs associated with connecting
a customer to the company's distribution system, including the service
connection and metering equipment. This charge also recovers expenses such as
meter reading, billing costs, customer accounting expenses records and
collections, and a portion of general plant items such as office space for
customer service personnel.
Customer Service
Protection - The rules governing grounds for denial of
service, credit determination, deposit and guarantee practices, meter reading
and accuracy, bill contents, billing frequency, billing accuracy, collection
practices, notices, grounds for termination of service, termination
procedures, rights to reconnection, late charges, disconnection/reconnection
fees, access to budget billing and payment arrangements, extreme weather,
illness or other vulnerable customer disconnection protections, and the like.
In a retail competition model, would include protections against
"slamming" and other hard-sell abuses.
Daily Peak -
The
maximum amount of energy or service demanded in one day from a company or
utility service.
Degree-day -
A
unit measuring the extent to which the outdoor mean (average of maximum and
minimum) daily dry-bulb temperature falls below (in the case of heating) or
rises above (in the case of cooling) an assumed base. The base is normally
taken as 65 degrees for heating and cooling unless otherwise designated.
Demand (electric) -
The
rate at which electric energy is delivered to or by a system, part of a
system, or a piece of equipment. Demand is expressed in kW, kVA, or other
suitable units at a given instant or over any designated period of time. The
primary source of "demand" is the power-consuming equipment of the
customers.
Demand Billing -
The
electric capacity requirement for which a large user pays. It may be based on
the customer's peak demand during the contract year, on a previous maximum or
on an agreed minimum. It is measured in kilowatts.
Demand Charge -
The
sum to be paid by a large electricity consumer for its peak usage level.
Demand Controller -
An
electrical, mechanical, or electromechanical device or system that monitors
the customer demand and causes that demand to be leveled and/or limited.
Demand Ratchet -
This
is the minimum billing demand based upon a given percentage of the actual
demand use, recorded during the last eleven months of demand history.
Demand-Side Management
(DSM) - A technology or program that encourages
customers to use electricity differently.
Demonstration -
The
application and integration of a new product or service into an existing or
new system. Most commonly, demonstration involves the construction and
operation of a new electric technology interconnected with the electric
utility system to demonstrate how it interacts with the system. This includes
the impacts the technology may have on the system and the impacts that the
larger utility system may have on the functioning of the technology.
Departing Member -
A
member consumer served at retail by an electric cooperative corporation that
hs given notice of intent to receive generation services from another source
or that is otherwise in the process of changing generation suppliers. These
persons shall nonetheless remain members of the electric distribution
cooperative corporation for purposes of distribution service.
Dependable Capacity -
The
system's ability to carry the electric power for the time interval and period
specified. Dependable capacity is determined by such factors as capability,
operating power factor and portion of the load the station is to supply.
Depletable Energy
Sources - This includes: 1) electricity purchased from
a public utility and 2) energy obtained from burning coal, oil, natural gas or
liquefied petroleum gasses.
Depreciation,
Straight-line - Straight-line depreciation takes the
cost of the asset less the estimated salvage value and allocates the cost in
equal amounts over the asset's estimated useful life.
Deregulation -
The
elimination of regulation from a previously regulated industry or sector of an
industry.
Designated Agent -
An
agent that acts on behalf of a transmission provider, customer or transmission
customer as required under the tariff.
Direct Access -
The
ability of a retail customer to purchase commodity electricity directly from
the wholesale market rather than through a local distribution utility.
Direct Current (DC) -
Electric
that flows continuously in the same direction.
Direct Energy
Conversion - Production of electricity from an energy
source without transferring the energy to a working fluid or steam. For
example, photovoltaic cells transform light directly into electricity. Direct
conversion systems have no moving parts and usually produce direct current.
Direct Load Control -
Activities
that can interrupt load at the time of peak by interrupting power supply on
consumer premises, usually applied to residential consumers.
Direct Utility Cost -
A
cost identified with one of the DSM categories.
Disaggregation -
The
functional separation of the vertically integrated utility into smaller,
individually owned business units (I.e. generation, dispatch/control,
transmission, distribution). The terms "deintegration",
"disintegration" and "delimitation" are sometimes used to
mean the same thing.
Discount/Interest Rate
- The discount rate is used to determine the present
value of future or past cash flows. The rate accounts for inflation and the
potential earning power of money.
Dispatchability -
This
is the ability of a generating unit to increase or decrease generation, or to
be brought on line or shut down at the request or a utility's system operator.
Distributed Generation
- A distributed generation system involves small
amounts of generation located on a utility's distribution system for the
purpose of meeting local (substation level) peak loads and/or displacing the
need to build additional (or upgrade) local distribution lines.
Distribution -
The
system of wires, switches, and transformers that serve neighborhoods and
business, typically lower than 69,000 volts. A distribution system reduces or
downgrades power from high-voltage transmission lines to a level that can be
used in homes or businesses.
Distribution Line -
This
is a line or system for distributing power from a transmission system to a
customer. It is any line operating at less than 69,000 volts.
Distribution System -
That
part of the electric system that delivers electric energy to consumers.
Distribution Utility
(Disco) - The regulated electric utility entity that
constructs and maintains the distribution wires connecting the transmission
grid to the final customer. The Disco can also perform other services such as
aggregating customers, purchasing power supply and transmission services for
customers, billing customers and reimbursing suppliers, and offering other
regulated or non-regulated energy services to retail customers. The
"wires" and "customer service" functions provided by a
distribution utility could be split so that two totally separate entities are
used to supply these two types of distribution services.
Distributive Power -
A
packaged power unit located at the point of demand. While the technology is
still evolving, examples include fuel cells and photovoltaic applications.
Diversity Exchange -
Exchange
of capacity or energy between systems that have peak loads occurring at
different times.
Diversity Factor -
The
ratio of the sum of the non-coincident maximum demands of two or more loads to
their coincident maximum demand for the same period.
Divestiture -
The
stripping off of one utility function from the others by selling
(spinning-off) or in most other way changing the ownership of the assets
related to that function. Most commonly associated with spinning-off
generation assets so they are no longer owned by the shareholders that own the
transmission and distribution assets.
DSM Measure Technology
Program - Single devices, equipment, or rates as listed
in the Reference Data. A demand-side management program is usually a group of
DSM measures or technologies. However, a DSM program could in some cases be a
single measure.
East Central Area
Reliability Coordination Agreeme - One of the ten
regional reliability councils that make up the North American Electric
Reliability Council (NERC).
Economic Dispatch -
The
distribution of total generation requirements among alternative sources for
optimum system economy with consideration to both incremental generating costs
and incremental transmission losses.
Economic Efficiency -
A
term that refers to the optimal production and consumption of goods and
services. This generally occurs when prices of products and services reflect
their marginal costs. Economic efficiency gains can be achieved through cost
reduction, but it is better to think of the concept as actions that promote an
increase in overall net value (which includes, but is not limited to, cost
reductions).
Economy Energy -
Energy
produced and substituted for the traditional but less economical source of
energy. Economic energy is usually sold without capacity and is priced at
variable costs plus administration costs.
Efficiency Service
Company - A company that offers to reduce a client's
electricity consumption with the cost savings being split with the client.
Elasticity of Demand -
The ratio of the percentage change in the quantity
demanded of a good to the percentage change in price.
Electric Capacity -
This
refers to the ability of a power plant to produce a given output of electric
energy at an instant in time, measured in kilowatts or megawatts (1,000
kilowatts).
Electric Distribution
Company - The company that owns the power lines and
equipment necessary to deliver purchased electricity to the customer.
Electric Plant
(Physical) - A facility that contains all necessary
equipment for converting energy into electricity.
Electric Power
Supplier - Non-utility provider of electricity to a
competitive marketplace.
Electric Rate Schedule
- An electric rate and its contract terms accepted by a
regulatory agency.
Electric Reliability
Council of Texas (ERCOT) - One of the ten regional
reliability councils that make up the North American Electric Reliability
Council (NERC).
Electric System -
This
term refers to all of the elements needed to distribute electrical power. It
includes overhead and underground lines, poles, transformers, and other
equipment.
Electric Utility -
A
legal entity that owns and/or operates facilities for the generation,
transmission, distribution, or sale of electric energy.
Electric Utility
Affiliate - This refers to a subsidiary or affiliate of
an electric utility. Many utilities form affiliates to develop, own, and
operate independent power facilities.
Electric Wholesale
Generator - A power producer who sells power at cost to
a customer.
Embedded Cost -
A
utility's average cost of doing business, which includes the costs of fuel,
personnel, plants, poles, and wires.
End-Use -
The
specific purpose for which electric is consumed (I.e. heating, cooling,
cooking, etc.).
Energy -
This
is broadly defined as the capability of doing work. In the electric power
industry, energy is more narrowly defined as electricity supplied over time,
express in kilowatt-hours.
Energy Charge -
The
amount of money owed by an electric customer for kilowatt-hours consumed.
Energy Consumption -
The
amount of energy consumed in the form in which it is acquired by the user. The
term excludes electrical generation and distribution losses.
Energy Costs -
Costs,
such as for fuel, that are related to and vary with energy production or
consumption.
Energy Deliveries -
Energy
generated by one system delivered to another system.
Energy Effects -
Changes
at the consumer meter that reflect activities undertaken in response to
utility-administered programs.
Energy Efficiency -
Programs
that reduce consumption.
Energy Policy Act of
1992 - This act which was the first comprehensive
federal energy law promulgated in more than a decade will help create a more
competitive U.S. electric power marketplace by removing barriers to
competition. By doing so, this act allows a broad spectrum of independent
energy producers to compete in wholesale electric power markets. The act also
made significant changes in the way power transmission grids are regulated.
Specifically, the law gives the Federal Energy Regulatory Commission the
authority to order electric utilities to provide access to their transmission
facilities to other power suppliers.
Energy Receipts -
Energy
generated by one utility system that is received by another through
transmission lines.
Energy Reserves -
The
portion of total energy resources that is known and can be recovered with
presently available technology at an affordable cost.
Energy Resources -
Everything
that could be used by society as a source of energy.
Energy Services
Companies (ESCOs) - ESCOs would be created in a
deregulated, openly competitive electric marketplace. The Energy Services
industry would be made up of power aggregators, power marketers and brokers,
whose job is to match buyers and sellers, tailor both physical and financial
instruments to suit the needs of particular customers, and to allow even the
smallest residential customers to form buying groups or cooperatives that will
give them the same bargaining power as large industrial customers.
Energy Source -
A
source that provides the power to be converted to electricity.
Energy Use -
Energy
consumed during a specified time period for a specific purpose (usually
expressed in kWh).
Entitlement -
Electric
energy or generating capacity that a utility has a right to access under power
exchange or sales agreements.
Entrance Cable/Service
Entrance Conductor - This is the cable running down the
side of a customer's house into the meter. This cable is owned by the customer
and its maintenance is the customer's responsibility. Work on this cable
should be performed only by a licensed electrician.
Environmental
Attributes - Environmental attributes quantity the
impact of various options on the environment. These attributes include
particulate emissions, SO2 or Nox, and thermal discharge (air and water).
Escape Provision -
A
contract provision which allows a party, such as an electric customer, to get
out of it. Usually, there is a penalty.
Exempt Wholesale Generator
(EWG) - An EWG is a
category of power producer defined by the Energy Policy Act of 1992. EWG's are
independent power facilities that generate electricity for sale in wholesale
power markets at market-based rates. The Federal Energy Regulatory Commission
is responsible for determining EWG status.
Facility -
A
location where electric energy is generated from energy sources.
Feasibility Factor -
A factor used to adjust potential energy savings to
account for cases where it is impractical to install new equipment. For
example, certain types of fluorescent lighting require room temperature
conditions. They are not feasible for outdoor or unheated space
applications. Some commercial applications, such as color-coded warehouses,
require good color rendition, so color distortions could also make certain
types of lighting infeasible. The feasibility factor equals 100 percent
minus the percent of infeasible applications.
Federal Energy
Regulatory Commission (FERC) - The regulatory agency,
in the U.S. Department of Energy, that has jurisdiction over interstate
electricity sales, wholesale rates, licensing, etc.
Federal Power Act -
An
act that includes the regulation of interstate transmission of electrical
energy and rates. This act is administered by the Federal Energy Regulatory
Commission.
Feeder -
This
is an electrical supply line, either overhead or underground, which runs
from the substation, through various paths, ending with the transformers. It
is a distribution circuit, usually less than 69,000 volts, which carries
power from the substation.
Feeder Lockout -
This
happens when a main circuit is interrupted at the substation by automatic
protective devices and cannot be restored until crews investigate. This
indicates a serious problem on the circuit, usually equipment failure or a
broken conductor.
Financial Attributes
- Financial attributes measure the financial health
of the company. Utility management, security analysts, investors, and
regulators use these attributes to evaluate a utility's performance against
its historic records and industry averages. Key financial attributes include
capital requirements, earnings per share of common equity, capitalization
ratios, and interest coverage ratios.
Firm Energy -
Power
or power-producing capacity covered by a commitment to be available at all
times during the period.
Firm Transmission
Service - Service that is reserved for at least one
year.
Fixed Costs -
The
annual costs associated with the ownership of property such as depreciation,
taxes, insurance, and the cost of capital.
Flat Rate -
A
fixed charge for goods and services that does not vary with changes in the
amount used, volume consumed, or units purchased.
Flexible Load Shape
- The ability to modify your utility's load shape on
short notice. When resources are insufficient to meet load requirements,
load shifting or peak clipping may be appropriate.
Flexible Retail
PoolCo - This provides a model for the restructured
electric industry that features an Independent System Operator (ISO)
operating in parallel with a commercial Power Exchange, which allows end-use
customers to buy from a spot market or "pool" or to contract
directly with a particular supplier.
Forced Outage -
An
outage that results from emergency conditions and requires a component to be
taken out of service automatically or as soon as switching operations can be
performed. The forced outage can be caused by improper operation of
equipment or by human error. If it is possible to defer the outage, the
outage becomes a scheduled outage.
Franchise Area -
This
is the territory in which a utility system supplies service to customers.
Franchise Monopoly -
Under this system, a utility has the right to be the
sole or principal supplier of electric power at a retail level in a specific
region or area knows as the franchise service territory. In return for its
sole supplier privilege, the utility has an obligation to serve anyone who
requests service, and agrees to be accountable to state and/or federal
regulatory bodies that regulate the utility's performance, accounting
procedures, pricing structures, and plant planning and siting.
Fuel -
A
substance that can be burned to product heat.
Fuel Adjustment -
A
clause in the rate schedule that provides for adjustment of the amount of a
bill as the cost of fuel varies from a specified base amount per unit. The
specified base amount is determined when rates are approved. This item is
shown on all customer bills and indicates the current rate for any
adjustment in the cost of fuel used by the company. It can be a credit or a
debit. The fuel adjustment lags two months behind the actual price of the
fuel. For example, the cost of oil in January will be reflected in March's
fuel adjustment.
Fuel Cell -
An
advanced energy conversion device that converts fuels to power very
efficiently and with minimal environmental impact.
Fuel Diversity -
A
utility or power supplier that has power stations using several different
types of fuel. Avoiding over-reliance on one fuel helps avoid the risk of
supply interruption and price spikes.
Fuel Escalation -
The
annual rate of increase of the cost of fuel, including inflation and real
escalation, resulting from resource depletion, increased demand, etc.
Fuel Expenses -
Costs
associated with the generation of electricity.
Fuel-Use Attributes
- Fuel-use attributes are important to utilities
concerned about reliance on a single fuel or reduction in usage of a
particular fuel. These attributes include annual fuel consumption by type
and percent energy generation by fuel.
Full-Forced Outage -
Net capability of generating units unavailable for
load for emergencies.
Functional
Unbundling - The functional separation of generation,
transmission, and distribution transactions within a vertically integrated
utility without selling of "spinning off" these functions into
separate companies.
Generating Station
(Generating Plant or Power Plan - The location of
prime movers, electric generators, and auxiliary equipment used for
converting mechanical, chemical, and nuclear energy into electric energy.
Generating Unit -
Combination
of connected prime movers that produce electric power.
Generation
(Electricity) - Process of producing electric energy
by transforming other forms of energy.
Generation Charges -
Part of the basic service charges on every customer's
bill for producing electricity. Generation service is competitively priced
and is not regulated by Public Utility Commissions. This charge depends on
the terms of service between the customer and the supplier.
Generation Company
(Genco) - A regulated or non-regulated entity
(depending upon the industry structure) that operates and maintains existing
generating plants. The Genco may own the generation plants or interact with
the short term market on behalf of plant owners. In the context of
restructuring the market for electricity, Genco is sometimes used to
describe a specialized "marketer" for the generating plants
formerly owned by a vertically-integrated utility.
Generation Dispatch
and Control - Aggregation and dispatching (sending
off to some location) generation from various generating facilities,
providing backup and reliability services.
Generator -
Machine
used to convert mechanical energy into electrical energy.
Geothermal -
An
electric generating station in which steam tapped from the earth drives a
turbine-generator, generating electricity.
Gigawatt -
This
is a unit of electric power equal to one billion watts, or one thousand
megawatts - enough power to supply the needs of a medium-sized city.
Good Utility
Practice - Methods and practices that are approved by
a significant portion of the industry.
Greenfield Plant -
This
refers to a new electric power generating facility built from the ground up.
Grid -
Matrix
of an electrical distribution system.
Gross Generation -
Amount
of electric energy produced by generating units as measured at the generator
terminals.
Heat Rate -
A
measure of generating station thermal efficiency and generally expressed as
Btu per net k/Wh. The heat rate is computed by dividing the total Btu
content of the fuel burned (or of heat released from a nuclear reactor) by
the resulting net kWh generated.
High Heat Value
(HHV) - The high or gross heat content of the fuel
with the heat of vaporization included; the water vapor is assumed to be in
a liquid state.
Hourly Metering -
Tracking
or recording a customer's consumption during specific periods of time that
can be tied to the price of energy.
Hourly Non-Firm
Transmission Service - Transmission scheduled and
paid for on an as-available basis and subject to interruption.
Hydroelectric -
An
electric generating station in which a water wheel is driven by falling
water, thus generating electricity.
Incentive -
A
rebate or some form of payment used to encourage people to implement a given
demand-side management (DSM) technology. The incentive is calculated as the
amount of the technology costs that must be paid by the utility for the
participant test to equal one and achieve the desired benefit/cost ratio to
drive the market.
Incremental Effects
- Annual effects in energy use and peak load caused
by new participants in existing DSM programs and all participants in new DSM
programs during a given year.
Independent Power
Producers (IPPs) - These are private entrepreneurs
who develop, own or operate electric power plants fueled by alternative
energy sources such as biomass, cogeneration, small hydro, waste-energy and
wind facilities.
Independent System
Operator (ISO) - An ISO is the entity charged with
reliable operation of the grid and provision of open transmission access to
all market participants on a non-discriminatory basis.
Indirect Utility
Cost - Any cost that is not identified with a
specific DSM category such as Administration, Marketing, etc.
Installed capacity -
The total generating units' capacities in a power
plant or on a total utility system. The capacity can be based on the
nameplate rating or the net dependable capacity.
Intangible
Transition Charge - The amounts on all customer
bills, collected by the electric utility to recover transition bond
expenses.
Integrated Resource
Plan (IRP) - A comprehensive and systematic blueprint
developed by a supplier, distributor, or end-user of energy who has
evaluated demand-side and supply-side resource options and economic
parameters and determined which options will best help them meet their
energy goals at the lowest reasonable energy, environmental, and societal
cost.
Interchange
(Electric utility) - The agreement among
interconnected utilities under which they buy, sell and exchange power among
themselves. This can, for example, provide for economy energy and emergency
power supplies.
Interconnection
(Electric utility) - The linkage of transmission
lines between two utility, enabling power to be moved in either direction.
Interconnections allow the utilities to help contain costs while enhancing
system reliability.
Interdepartmental
Service (Electric) - Amounts charged by the electric
department at specified rates for electricity supplied by other utility
departments.
Intermediate Load
(Electric Systems) - Range from base load to a point
between that and peak load.
Intermittent
Resources - Resources whose output depends on some
other factory that cannot be controlled by the utility e.g. wind or sun.
Thus, the capacity varies by day and by hour.
Interruptible Loads
- Loads that can be interrupted in the event of
capacity or energy deficiencies on the supplying system.
Interruptible Power
- This refers to power whose delivery can be
curtailed by the supplier, usually under some sort of agreement by the
parties involved.
Interruptible Rates
- These provide power at a lower rate to large
industrial and commercial customers who agree to reduce their electricity
use in times of peak demand.
Interval Metering -
The
process by which power consumption is measured at regular intervals in order
that specific load usage for a set period of time can be determined.
Investor-Owned
Utility (IOU) - An IOU is a form of electric utility
owned by a group of investors. Shares of IOUs are traded on public stock
markets.
Jurisdictional -
Utilities,
ratepayers and regulators (and impacts on those parties) that are subject to
state regulation in a state considering restructuring.
Kilovolt ampere
(kVA) - The practical unit of apparent power, which
is 1,000 volt-amperes. The volt-amperes of an electric circuit are the
mathematical products of the volts and amperes of the client.
Kilowatt (kW) -
The
electrical unit of power equal to 1,000 watts.
Kilowatt-Hour (kWh)
- The basic unit of electric energy equal to one
kilowatt of power supplied to or taken from an electric circuit for one
hour.
Layoff -
Excess
capacity of a generating unit, available for a limited time under the terms
of a sales agreement.
Levelized -
A
lump sum that has been divided into equal amounts over period of time.
Lightning Arrestor -
This protects lines, transformers, and equipment from
lightning surges by carrying the charge to the ground. Lightning arrestors
serve the same purpose on a line as a safety valve on a steam boiler.
Line -
A
line is a system of poles, conduits, wires, cables, transformers, fixtures,
and accessory equipment used for the distribution of electricity to the
public.
Load -
The
amount of electric power delivered or required at any specified point or
points on a system. Load originates primarily at the power consuming
equipment of the customer.
Load Building -
Programs
aimed at increasing use of existing electric equipment or the addition of
new equipment.
Load Centers -
A
limited geographical area where large amounts of power are used by
customers.
Load Diversity -
The
condition that exists when the peak demands of a variety of electric
customers occur at different times. This is the objective of "load
molding" strategies, ultimately curbing the total capacity requirements
of a utility.
Load Duration Curve
- A curve that displays load values on the horizontal
axis in descending order of magnitude against percent of time (on the
vertical axis) the load values are exceeded.
Load Factor -
The
ratio of the average load supplied to the peak or maximum load during a
designated period. Load factor, in percent, also may be derived by
multiplying the kWh in a given period by 100, and dividing by the product of
the maximum demand in kW and the number of hours in the same period.
Load Forecast -
Estimate
of electrical demand or energy consumption at some future time.
Load Management -
Influencing
the level and shape of demand for electrical energy so that demand conforms
to present supply situations and long-run objectives and constraints.
Load Profile -
Information
on a customer's usage over a period of time, sometimes shown as a graph.
Load Ratio Share -
Ratio
of a transmission customer's network load to the provider's total load
calculated on a rolling twelve-month basis.
Load Shape -
A
curve on a chart showing power (kW) supplied (on the horizontal axis)
plotted against time of occurrence (on the vertical axis), and illustrating
the varying magnitude of the load during the period covered.
Load Shifting -
A
load shape objective that involves moving loads from peak periods to
off-peak periods. If a utility does not expect to meet its demand during
peak periods but has excess capacity in the off-peak periods, this strategy
might be considered.
Loss of Load
Probability (LOLP) - A measure of the probability
that system demand will exceed capacity during a given period; this period
is often expressed as the expected number of days per year over a long
period, frequently taken as ten consecutive years. An example of LOLP is one
day in ten years.
Losses -
The
general term applied to energy (kWh) and capacity (kW) lost in the operation
of an electric system. Losses occur principally as energy transformations
from kWh to waste-heat in electrical conductors and apparatus. This
waste-heat in electrical conductors and apparatus. This power expended
without accomplishing useful work occurs primarily on the transmission and
distribution system.
Low Heat Value (LHV)
- The low or net heat of combustion for a fuel
assumes that all products of combustion, including water vapor, are in a
gaseous state.
Marginal Cost -
The
sum that has to be paid the next increment of product of service. The
marginal cost of electricity is the price to be paid for kilowatt-hours
above and beyond those supplied by presently available generating capacity.
Marginal Cost -
The
cost to the utility or providing the next (marginal) kilowatt-hour of
electricity, irrespective of sunk costs.
Market Eligibility -
The percentage of equipment still available for
retrofit to the demand-side management measure. For example, if 20 percent
of customers where demand controllers are feasible have already purchased
demand controllers, then the eligible market eligibility factor is 80
percent.
Market-Based-Price -
A price set by the mutual decisions of many buyers
and sellers in a competitive market.
Marketer -
An
agent for generation projects who markets power on behalf of the generator.
The marketer may also arrange transmission, firming or other ancillary
services as needed. Though a marketer may perform many of the same functions
as a broker, the difference is that a marketer represents the generator
while a broker acts as a middleman.
Maximum Demand -
Highest
demand of the load within a specified period of time.
Maximum Demand -
Highest
demand of the load occurring within a specified period of time.
Measure Life -
The
length of time that the demand-side management technology will last before
requiring replacement. The measure life equals the technology life. These
terms are used synonymously.
Megawatt -
One
million watts.
Megawatt-hour (MWh)
- One thousand kilowatt-hours or one million-watt
hours.
Member System -
An
eligible customer operating as part of an agency composed exclusively of
other eligible customers.
Meter Constant -
This
represents the ratio between instrument transformers (CTs, PTs) and the
meter. It is used as a multiplier of the difference between meter readings
to determine the kWh used. The meter constant is also used as a multiplier
of the demand reading to determine the actual demand.
Mid-America
Interconnected Network (MAIN - One of the ten
regional reliability councils that make up the North American Electric
Reliability Council (NERC).
Mid-Atlantic Area
Council (MAAC) - One of the ten regional reliability
councils that make up the North American Electric Reliability Council (NERC).
Mid-Continent Area
Power Pool (MAPP); - One of the ten regional
reliability councils that make up the North American Electric Reliability
Council (NERC).
Mill -
One
mill is equal to one-thousandth of a dollar.
Mobile Substation -
This
is a movable substation which is used when a substation is not working or
additional power is needed.
Monopoly -
The
only seller with control over market sales.
Monopsony -
The
only buyer with control over market purchases.
Municipal Electric
Utility - A power utility system owned and operated
by a local jurisdiction.
Municipal Solid
Waste - A Biomass resource that can be used to
produce energy by the process of incineration.
Municipalization -
The
process by which a municipal entity assumes responsibility for supplying
utility service to its constituents. In supplying electricity, the
municipality may generate and distribute the power or purchase wholesale
power from other generators and distribute it.
Native Load
Customers - Wholesale and retail customers that the
transmission provider constructs and operates a system to provide electric
needs.
Net Capability -
Maximum
load carrying ability of the equipment, excluding station use.
Net Generation -
Gross
generation minus the energy consumed at the generating station for its use.
Net Generation -
Gross
generation minus plant use.
Network -
A
system of transmission and distribution lines cross-connected and operated
to permit multiple power supply to any principal point on it. A network is
usually installed in urban areas. It makes it possible to restore power
quickly to customers by switching them to another circuit.
Network Customers -
Customers
receiving service under the terms of the Transmission Provider's Network
Integration Tariff.
Network Integration
Transmission Service - A service that allows the
customer to integrate, plan, dispatch, and regulate its Network Resources.
Network Load -
Designated
load of a transmission customer.
New England Power
Exchange (NEPEX) - This is the operating arm of the
New England Power Pool.
New England Power
Pool (NEPOOL) - A regional consortium of 98 utilities
who coordinate, monitor and direct the operations of major generation and
transmission facilities in New England.
Non-basic Service -
Any
category of service not related to basic services (generation, transmission,
distribution and transition charges).
Non-bypassable Wires
Charge - A charge generally placed on distribution
services to recover utility costs incurred as a result of restructuring
(stranded costs - usually associated with generation facilities and
services) and not recoverable in other ways.
Non-Firm Power -
Power
supplied or available under terms with limited or no assured availability.
Non-Firm
Transmission Service - Point-to-point service
reserved and/or scheduled on an as-available basis.
Non-jurisdictional -
Utilities, ratepayers and regulators (and impacts on
those parties) other than state-regulated utilities, regulators and
ratepayers in a jurisdiction considering restructuring. Examples include
utilities in adjacent state and non-state regulated, publicly owned
utilities within restructuring states.
Non-utility
Generator - Independent power producers, exempt
wholesale generators and other companies in the power generation business
that have been exempted from traditional utility regulation.
Noncoincidental Peak
Load - The sum of two or more peak loads on
individual systems, not occurring in the same time period.
Nonutility Power
Producer - A legal entity that owns electric
generating capacity, but it not an electric utility.
North American
Electric Reliability Council (NERC) - Council formed
by electric utility industry in 1968 to promote the reliability and adequacy
of bulk power supply in utility systems of North America. NERC consists of
ten regional reliability councils: Alaskan System Coordination Council
(ASCC); East Central Area Reliability Coordination Agreement (ECAR);
Electric Reliability Council of Texas (ERCOT); Mid-America Interconnected
Network (MAIN); Mid-Atlantic Area Council (MAAC); Mid-Continent Area Power
Pool (MAPP); Northeast Power Coordinating Council (NPCC); Southeastern
Electric Reliability Council (SERC); Southwest Power Pool (SPP); Western
systems Coordinating Council (WSCC).
North/South -
Technology
factors are provided for North and South because some equipment and
technologies are temperature sensitive. A North designation generally
represents a utility that experiences cold winters and has average annual
heating degree days of at least 5,000 (based on a 65 degree base). A South
designation has relatively mild winters but a significant saturation of air
conditioning. This geographical designation is very general, but it is
intended to separate out areas that are warmer than others.
Northeast Power
Coordinating Council (NPCC) - One of the ten regional
reliability councils that make up the North American Electric Reliability
Council (NERC).
Notice of Proposed
Rulemaking - A designation used by the Federal Energy
Regulatory Commission for some of its dockets.
Nuclear Regulatory
Commission - This is the federal agency responsible
for the licensing of nuclear facilities. They oversee these facilities and
make sure regulations and standards are followed.
Obligation to Serve
- The obligation of a utility to provide electric
service to any customer who seeks that service, and is willing to pay the
rates set for that service. Traditionally, utilities have assumed the
obligation to serve in return for an exclusive monopoly franchise.
Off-peak -
Periods
of relatively low system demands.
Ohm -
Unit
of measure of electrical resistance.
On-Peak Energy -
Energy
supplied during periods of relatively high system demand as specified by the
supplier.
Open Access -
Access
to the electric transmission system by any legitimate market participant,
including utilities, independent power producers, cogenerators, and power
marketers.
Operation and
Maintenance Expenses - Costs that relate to the
normal operating, maintenance and administrative activities of a business.
Options -
Options
are potential decisions over which a utility has a reasonable degree of
control. One option might be to build a new coal-fired power plant; another
option might be to refurbish an old power plant. Each option has one of more
values to be specified. A specified option has a specified value such as
year of implementation or size of plant. A plan is a set of specified
options. A plan contains a set of decisions or commitments the utility can
make, given the options available.
Outage -
Time
during which service is unavailable from a generating unit, transmission
line, or other facility.
Overload -
The
flow of electricity into conductors or devices when normal load exceeds
capacity.
Parallel Path Flow -
This refers to the flow of electric power on an
electric system's transmission facilities resulting from scheduled electric
power transfers between two other electric systems. (Electric power flows on
all interconnected parallel paths in amounts inversely proportional to each
path's resistance.)
Partial Load -
An
electrical demand that uses only part of the electrical power available.
Payback -
The
length of time it takes for the savings received to cover the cost of
implementing the technology.
Peak -
Periods
of relatively high system demands.
Peak Clipping -
Peak
clipping reduces a utility's system peak, reducing the need to operate
peaking units with relatively high fuel costs. Peak clipping is typically
pursued only for the days the system peak is likely to occur, and the
resources are not expected to meet the impending load requirements.
Peak Demand -
Maximum
power used in a given period of time.
Peak Load Power
plant - A power generating station that is normally
used to produce extra electricity during peak load times.
Peaking Capacity -
Generating
equipment normally operated only during the hours of highest daily, weekly,
or seasonal loads; this equipment is usually designed to meet the portion of
load that is above base load.
Peaking Unit -
A
power generator used by a utility to produce extra electricity during peak
load times.
Performance
Attributes - Performance attributes measure the
quality of service and operating efficiency. Loss of load probability,
expected energy curtailment, and reserve margin are all performance
attributes.
Period of Analysis -
The number of years considered in the study.
Phase -
One
of the characteristics of the electric service supplied or the equipment
used. Practically all residential customers have single-phase service. Large
commercial and industrial customers have either two-phase or three-phase
service.
Photovoltaics -
A
technology that directly converts light into electricity. The process uses
modules, which are usually made up of many cells (thin layers of
semiconductors).
Pilot -
A
utility program offering a limited group of customers their choice of
certified or licensed energy suppliers on a one year minimum trial basis.
Planned Generator -
Proposal
to install generating equipment at an existing or planned facility or site.
Plant -
A
facility containing prime movers, electric generators, and other equipment
for producing electric energy.
Point(s) of Delivery
- Point(s) for interconnection on the Transmission
Provider's System where capacity and/or energy are made available to the end
user.
Point(s) of Receipt
- Point(s) of connection to the transmission system
where capacity and/or energy will be made available to the transmission
providers.
Point-to-Point
Transmission Service - Reservation and/or
transmission of energy from point(s) of receipt to point(s) of delivery.
PoolCo -
This
will serve as a model for the restructured electric industry that combines
the functions of an ISO and a Power Exchange. In its least flexible form, a
PoolCo also prohibits direct transactions between buyers and sellers (I.e.
all producers selling to the Pool and all consumers buy from the Pool.)
Power -
The
rate at which energy is transferred.
Power Exchange -
This
is a commercial entity responsible for facilitating the development of
transparent spot prices for energy capacity, and/or ancillary services.
Power Grid -
A
network of power lines and associated equipment used to transmit and
distribute electricity over a geographic area.
Power Marketers -
Entities
engaged in buying and selling electricity.
Power Plant -
A
generating station where electricity is produced.
Power Pool -
Two
or more interconnected electric systems that agree to coordinate operations.
Power Purchase
Agreement - This refers to a contract entered into by
an independent power producer and an electric utility. The power purchase
agreement specifies the terms and conditions under which electric power will
be generated and purchased. Power purchase agreements require the
independent power producer to supply power at a specified price for the life
of the agreement. While power purchase agreements vary, their common
elements include: specification of the size and operating parameters of the
generation facility; milestones in-service dates, and contract terms; price
mechanisms; service and performance obligations; dispatchability options;
and conditions of termination or default.
Present Value -
The
amount of money required to secure a specified cash flow on a future date at
a given rate of return.
Present Worth Factor
- The adjustment factor that discounts a sum of
future dollars back to the current year.
Price Cap -
Situation
where a price has been determined and fixed.
Primary Circuit -
This
is the distribution circuit (less than 69,000 volts) on the high voltage
side of the transformer.
Prime Mover -
A
device such as an engine or water wheel that drives an electric generator.
Production -
The
act or process of generating electric energy.
Production Costing -
A method used to determine the most economical way to
operate a given system of power resources under given load conditions.
Program Life -
The
length of time that the utility will be actively involved in promoting a
demand-side management program (I.e. financing the marketing activities and
the incentives of the program.)
Program Maturity -
The
time it takes for the full benefits of a demand-side management measure or
program to be realized.
Project Financing -
This
is the most commonly used method to finance the construction of independent
power facilities. Typically, the developer pledges the value of the plant
and part or all of its expected revenues as collateral to secure financing
from private lenders.
Prorated Bills -
The
computation of a bill based upon proportionate distribution of the
applicable billing schedule. A prorated bill is less than 25 days ore more
than 38 days.
Provider of Last
Resort - A legal obligation (traditionally given to
utilities) to provide service to a customer where competitors have decided
they do not want that customer's business.
Public Authority
Service to Public Authorities - Electric services
supplied to public entities such as municipalities or divisions of state or
federal governments.
Public Utility -
A
utility operated by a non-profit governmental or quasi-governmental entity.
Public utilities include municipal utilities, cooperatives, and power
marketing authorities.
Public Utility
Commissions - State regulatory agencies that provide
oversight, policy guidelines and direction to electric public utilities.
Public Utility
Holding Company Act of 1935 (PUHCA) - PUHCA was
enacted by the U.S. Congress to regulate the large interstate holding
companies that monopolized the electric utility industry during the early
20th century.
Public Utility
Regulatory Policies Act of 1978 (PU - PURPA promotes
energy efficiency and increased use of alternative energy sources by
encouraging companies to build cogeneration facilities and renewable energy
projects using wind power, solar energy, geothermal energy, hydropower,
biomass, and waste fuels.
Publicly Owned
Utilities - Municipal utilities (utilities owned by
branches of local government) and/or co-ops (utilities owned cooperatively
by customers).
Pumped Storage -
A
facility designed to generate electric power during peak load periods with a
hydroelectric plant using water pumped into a storage reservoir during
off-peak periods.
Purchased Power
Adjustment - A clause in a rate schedule that
provides for adjustments to a bill when energy from another system is
acquired.
Qualifying Facility
- A cogeneration of small production facility that
meets criteria established by the Federal Energy Regulatory Commission.
Ramp Rate -
The
rate at which you can increase load on a power plant. The ramp rate for a
hydroelectric facility may be dependent on how rapidly water surface
elevation on the river changes.
Ramp Up (Supply
Side) - Increasing load on a generating unit at a
rate called the ramp rate.
Ramp-Up
(Demand-Side) - Implementing a demand-side management
program over time until the program is considered fully installed.
Rate Base -
Value
of property upon which a utility is permitted to earn a specific rate of
return.
Rate Class -
A
group of customers identified as a class and subject to a rate different
from the rates of other groups.
Rate Structure -
The
design and organization of billing charges by customer class to distribute
the revenue requirement among customer classes and rating period.
Rate-Basing -
The
practice by utilities of allotting funds invested in utility Research
Development Demonstration and Commercialization and other programs from
ratepayers, as opposed to allocating these costs to shareholders.
Rate-of-Return Rates
- Rates set to the average cost of electricity as an
incentive for regulated utilities to operate more efficiently at lower rates
where costs are minimized.
Ratemaking Authority
- The utility commission's authority as designated by
a State or Federal legislature to fix, modify, and/or approve rates.
Ratepayer -
This
is a retail consumer of the electricity distributed by an electric utility.
This includes residential, commercial and industrial users of electricity.
Real-time Pricing -
The
instantaneous pricing of electricity based on the cost of the electricity
available for use at the time the electricity is demanded by the customer.
Receiving Party -
Entity
receiving the capacity and/or energy transmitted by the transmission
provider to the point(s) of delivery.
Recovered Energy -
Reused
heat or energy that otherwise would be lost. For example, a combined cycle
power plant recaptures some of its own waste heat and reuses it to make
extra electric power.
Regional Power
Exchange - An entity established to coordinate
short-term operations to maintain system stability and achieve least-cost
dispatch. The dispatch provides back-up supplies, short-term excess sales,
reactive power support, and spinning reserve. The pool may own, manager
and/or operate the transmission lines or be an independent entity that
manages the transactions between entities.
Regional Reliability
Councils - Regional organizations charged with
maintaining system reliability even during abnormal bulk power conditions
such as outages and unexpectedly high loads.
Regional
Transmission Group - An organization approved by a
Commission to coordinate transmission planning (and expansion), operation,
and use on a regional basis.
Regulation -
An
activity of government to control or direct economic entities by rulemaking
and adjudication.
Regulatory Compact -
Under this compact, utilities are granted service
territories in which they have the exclusive right to serve retail
customers. In exchange for this right, utilities have an obligation to serve
all consumers in that territory on demand.
Reliability -
Electric
system reliability has two components - adequacy and security. Adequacy is
the ability of the electric system to supply the aggregate electric demand
and energy requirements of the customers at all times, taking into account
scheduled and unscheduled outages of system facilities. Security is the
ability of the electric system to withstand sudden disturbances such as
electric short circuits or unanticipated loss of system facilities.
Reliability Councils
- Regional reliability councils were organized after
the 1965 northeast blackout to coordinate reliability practices and avoid or
minimize future outages. They are voluntary organizations of
transmission-owning utilities and in some cases power cooperatives, power
marketers, and non-utility generators. Membership rules vary from region to
region. They are coordinated through the North American Electric Reliability
Council.
Renewable Energy -
Energy
that is capable of being renewed by the natural ecological cycle.
Replacements -
The
substitution of a unit for another unit generally of a like or improved
character.
Repowered Plant -
This
is an existing power facility that has been substantially rebuilt to extend
its useful life.
Reregulation -
The
design and implementation of regulatory practices to be applied to the
remaining regulated entities after restructuring of the
vertically-integrated electric utility. The remaining Regulated entities
would be those that continue to exhibit characteristics of a natural
monopoly, where imperfections in the market prevent the realization of more
competitive results, and where, in light of other policy considerations,
competitive results are unsatisfactory in one or more respects. Reregulation
could employ the same or different regulatory practices as those used before
restructuring.
Resellers -
Companies
that purchase utility service from a wholesaler and resell it to consumers.
Reserve Capacity -
Capacity
in excess of that required to carry peak load.
Reserve Generating
Capacity - The amount of power that can be produced
at a given point in time by generating units that are kept available in case
of special need. This capacity may e used when unusually high power demand
occurs, or when other generating units are off-line for maintenance, repair
or refueling.
Reserve Margin -
The
percentage of installed capacity exceeding the expected peak demand during a
specified period.
Restructuring -
The
reconfiguration of the vertically-integrated electric utility. Restructuring
usually refers to separation of the various utility functions into
individually-operated and-owned entities.
Retail -
Sales
of electric energy to the ultimate customer.
Retail Company -
A
company that is authorized to sell electricity directly to industrial,
commercial and residential end-users.
Retail Competition -
A system under which more than one electric provider
can offer to sell to retail customers, and retail customers are allowed to
choose more than one provider from whom to purchase their electricity.
Retail Transaction -
The sale of electric power from a generating company
or wholesale entity to the customer.
Retail Wheeling -
This
refers to the ability of end-use customers of any size to purchase electric
capacity, energy or both from anyone other than the local electric utility
by moving or wheeling such power over the local utility's transmission
and/or distribution lines.
Rolling Blackouts -
A
controlled and temporary interruption of electrical service. These are
necessary when a utility is unable to meet heavy peak demands because of an
extreme deficiency in power supply.
Running and
Quick-Start Capability - Generally refers to
generating units that can be available for load within a 30-minute period.
Rural Electric
Cooperative - A nonprofit, customer-owned electric
utility that distributes power in a rural area.
Sales for Resale -
Energy
supplied to other utilities and agencies for resale.
Savings Fraction -
The
percentage of consumption from using the old technology that can be saved by
replacing it with the new, more efficient demand-side management technology.
For example, if a 60-watt incandescent lamp were replaced with a 15-watt
compact fluorescent lamp, the savings fraction would be 75 percent because
the compact fluorescent lamp uses only 25 percent of the energy used by the
incandescent lamp.
Scheduled Outage -
An
outage that results when a component is deliberately taken out of service at
a selected time, usually for the purposes of construction, maintenance, or
testing.
Securitization -
The
act of pledging assets to a creditor through a note, lien or bond. This is a
mechanism to allow a utility to recover stranded costs up front in a single
lump sum payment. Under a securitization scheme, the legislature or utility
commission orders customers to pay a surcharge as part of their electric
bill. That surcharge must be paid within the utility's original service
territory, regardless of who supplies the electricity to customers.
Self-Generation -
A
generation facility dedicated to serving a particular retail customer,
usually located on the customer's premises. The facility may either be owned
directly by the retail customer or owned by a third party with a contractual
arrangement to provide electricity to meet some or all of the customer's
load.
Service Agreement -
an
agreement entered into by the transmission customer and transmission
provider.
Service Area -
The
territory a utility system is required or has the right to supply electric
service to ultimate customers.
Service Drop -
The
lines running to a customer's house. Usually a service drop is made up of
two 120 volt lines and a neutral line, from which the customer can obtain
either 120 or 240 volts of power. When these lines are insulated and twisted
together, the installation is called triplex cable.
Service Life -
The
length of time a piece of equipment can be expected to perform at its full
capacity.
Service Territory -
This
is the state, area or region served exclusively by a single electric
utility.
Single Phase Line -
This
carriers electrical loads capable of serving the needs of residential
customers, small commercial customers, and streetlights. It carrier a
relatively light load as compared to heavy duty three phrase constructs.
Small Power Producer
- Refers to a producer that generates at least 75% of
its energy from renewable sources.
Solar Thermal
Electric - A process that generates electricity by
converting incoming solar radiation to thermal energy.
Source Energy -
All
the energy used in delivering energy to a site, including power generation
and transmission and distribution losses, to perform a specific function,
such as space conditioning, lighting, or water heating. Approximately three
watts (or 10.239 Btus) of energy is consumed to deliver one watt of usable
electricity.
Southeastern
Electric Reliability Council (SERC - One of the ten
regional reliability councils that make up the North American Electric
Reliability Council (NERC).
Southwest Power Pool
(SPP) - One of the ten regional reliability councils
that make up the North American Electric Reliability Council (NERC).
Spinning Reserve -
Reserve
generating capacity running at zero load.
Split-the-savings -
The
basis for settling economy-energy transactions between utilities. The added
cost of the supplier are subtracted from the avoided costs of the buyer, and
the difference is evenly divided.
Spot Purchases -
Single
shipment of fuel purchased for delivery within 1 year.
Stable Prices -
Prices
that do not vary greatly over short time periods.
Standard Rate -
The
basic rate customers would take service under if they were not on real-time
pricing.
Standby Facility -
A
facility that supports a system and generally running under no load.
Stocks -
A
supply of fuel accumulated for future use.
Stranded Benefits -
Special
collection programs, renewable energy and demand side management programs,
lifeline rates and other utility resources funded by a monopoly utility that
may not be funded if the utility's competition does not have smaller costs.
Stranded Commitment
- Assets and contracts associated with shifting to
competition which are above market prices and result in non-competitive
conditions for the utility.
Stranded
Investments/Costs - Utility investments in facilities
built to serve customers under traditional regulation may become
unrecoverable or "stranded" if those assets are deregulated and
their cost of generation exceeds the actual price of power in a competitive
market. These include prior investments allowed by regulators that are
currently being recovered through regulated rates.
Stranded/Strandable
Costs - These are costs inherent in the existing
electric utility industry rendered potentially unrecoverable in a
competitive market.
Strategic
Conservation - Strategic conservation results from
load reductions occurring in all or nearly all time periods. This strategy
can be induced by price of electricity, energy-efficient equipment, or
decreasing usage of equipment.
Strategic Load
Growth - A form of load building designed to increase
efficiency in a power system. This load shape objective can be induced by
the price of electricity and by the switching of fuel technologies (from gas
to electric).
Substation -
A
facility used for switching and/or changing or regulating the voltage of
electricity. Service equipment, line transformer installations, or minor
distribution or transmission equipment are not classified as substations.
Summer Peak -
The
greatest load on an electric system during any prescribed demand interval in
the summer.
Supplier -
A
person or corporation, generator, broker, marketer, aggregator or any other
entity, that sells electricity to customers, using the transmission or
distribution facilities of an electric distribution company.
Supply-Side -
Technologies
that pertain to the generation of electricity.
Surplus -
Excess
firm energy available from a utility or region for which there is no market
at the established rates.
Switching Station -
Facility
used to connect two or more electric circuits through switches.
System (Electric) -
Physically
connected generation, transmission, and distribution facilities operating as
a single unit.
System Peak Demand -
The highest demand value that has occurred during a
specified period for the utility system.
Systems Benefits
Charge - This is a per-customer charge intended to
recover the costs of utility demand-side management reach and development,
renewable resources or low-income programs.
Target Market -
A
specific group of people or geographical area that has been identified as
the primary buyers of a product or service.
Tariff -
A document, approved by the responsible regulatory agency, listing the terms
and conditions, including a schedule or prices, under which utility services
will be provided.
Tax Credits -
Credits
established by the federal and state government to assist the development of
the alternative energy industry.
Three Phase Line -
This
is capable of carrying heavy loads of electricity, usually to larger
commercial customers.
Time-of-Use Rates -
Electricity
prices that vary depending on the time periods in which the energy is
consumed. In a time-of-use rate structure, higher prices are charged during
utility peak-load times. Such rates can provide an incentive for consumers
to curb power use during peak times.
Tipping Fee -
A
credit received by municipal solid waste companies for accepting and
disposing of solid waste.
Total DSM Cost -
Total
utility and nonutility costs.
Total Incentives -
The
incentive a utility offers is expressed as a percentage of the technology
cost. The utility can assume any level between 0 and 100 percent. A value
greater than 100 percent is possible if the utility decides to pay for all
the equipment and give a rebate as an additional incentive. You can
calculate the required incentive by setting the participant test to one by
using the following formula: Total Incentives = (Technology Costs - Bill
Reductions)/2.
Total Nonutility
Costs - Cash expenditures incurred through
participation in a DSM program that are not reimbursed by the utility.
Total Resource Cost
(TRC) Test - A ratio used to assess the cost
effectiveness of a demand-side management program. Although this economic
desirability test provides information about the relative merits of
different DSM programs, several important issues are not addressed in this
analysis. First, this cost-effectiveness test does not indicate the level of
program participation that will be achieved. Second, the most cost-effective
mix of DSM technologies is not determined by this test because this
methodology only evaluates one specific measure at a time. Finally, these
tests are static; they do not include a feedback mechanism to account for
changes in demand due to the DSM program. The TRC Test measures the ratio of
total benefits to the costs incurred by both the utility and the
participant. The TRC test is applicable to conservation, load management,
and fuel substitution technologies. For fuel substitution technologies, the
test compares the impact from the fuel not selected to the impact of the
fuel that is chosen as a result of implementing the technologies. The TRC
Test includes benefits occurring to both participants and nonparticipants.
Benefits include avoided supply costs (I.e. transmission, distribution,
generation, and capacity costs). Costs include those incurred by both the
utility and program participant.
Total Utility Costs
- Total direct and indirect utility costs.
Tower -
A
steel structure found along transmission lines which is used to support
conductors.
Transfer -
To
move electric energy from one utility system to another over transmission
lines.
Transformer -
A
device for changing the voltage of alternating current.
Transition Charge -
A
charge on every customer's bill designed to recover an electric utility's
transition or stranded costs as determined by a Public Utility Commission.
Transition Costs -
Costs
incurred by electric utilities to meet obligations, which required the
utilities to meet current and future load demand. The utilities ensured
sufficient power generating capacity by building additional power plants,
whose debts are currently recovered through a regulated rate of return that
would not continue in a competitive marketplace. They could be recovered
with a special charge during the transition to competition.
Transmission -
The
act or process of transporting electric energy in bulk.
Transmission and
Distribution (T&D) Losses - Losses the result
from the friction that energy must overcome as it moves through wires to
travel from the generation facility to the customer. Because of losses, the
demand produced by the utility is greater than the demand that shows up on
the customer bills.
Transmission and
Distribution (T&D) System - An interconnected
group of electric transmission lines and associated equipment for the
movement or transfer or electric energy in bulk between points of supply and
points at which it is transformed for delivery to the ultimate customers.
Transmission Charge
- Part of the basic service charges on every
customer's bill for transporting electricity from the source of supply to
the electric distribution company. Public Utility Commissions regulate
retail transmission prices and services. The charge will vary with source of
supply.
Transmission Lines -
Heavy wires that carry large amounts of electricity
over long distances from a generating station to places where electricity is
needed. Transmission lines are held high above the ground on tall towers
called transmission towers.
Transmitting Utility
- This is a regulated entity which owns, and may
construct and maintain, wire used to transmit wholesale power. It may or may
not handle the power dispatch and coordination functions. It is regulated to
provide non-discriminatory connections, comparable service and cost
recovery. Any electric utility, qualifying cogeneration facility, qualifying
small power production facility, or Federal power marketing agency which
owns or operates electric power transmission facilities which are used for
the sale of electric energy at wholesale.
Transparent Price -
The
most recent price contract available to any buyer or seller in the market.
U.S. Department of
Energy (DOE) - The DOE managers programs of research,
development and commercialization for various energy technologies, and
associated environmental, regulatory and defense programs. DOE announces
energy policies and acts as a principal advisor to the President on energy
matters.
U.S. Environmental
Protection Agency (EPA) - The EPA administers federal
environmental policies, enforces environmental laws and regulations,
performs research, and provides information on environmental subjects. The
agency also acts as chief advisor to the President on U.S. environmental
policy and issues.
Ultrahigh Voltage
Transmission - Transporting electricity over
bulk-power lines at voltage greater than 800 kilovolts.
Unbundling -
Disaggregating
electric utility service into its basic components and offering each
component separately for sale with separate rates for each component. For
example, generation, transmission and distribution could be unbundled and
offered as discrete services.
Uncertainties -
Uncertainties
are factors over which the utility has little or no foreknowledge, and
include load growth, fuel prices, or regulatory changes. Uncertainties are
modeled in a probabilistic manner. However, in the Detailed Workbook, you
may find it is more convenient to treat uncertainties as "unknown but
bounded" variables without assuming a probabilistic structure. A
specified uncertainty is a specific value taken on by an uncertainty factor
(e.g. 3 percent per year for load growth). A future uncertainty is a
combination of specified uncertainties (e.g. 3 percent per year load growth,
1 percent per year real coal and oil price escalation, and 2.5 percent
increase in housing starts).
Unit Energy
Consumption (UEC) - The annual amount of energy that
is used by the electrical device or appliance.
Universal Service -
Electric
service sufficient for basic needs (an evolving bundle of basic services)
available to virtually all members of the population regardless of income.
Unserved or Unmet
Energy - The average energy that will be demanded but
not served during a specified period due to inadequate available generating
capacity.
Upgrade -
Replacement
or addition of electrical equipment resulting in increased generation or
transmission capability.
Uprate -
An
increase in the rating or stated measure of generation or transfer
capability.
Utility -
A
regulated entity which exhibits the characteristics of a natural monopoly.
For the purposes of electric industry restructuring "utility"
refers to the regulated, vertically-integrated electric company.
"Transmission utility" refers to the regulated owner/operator of
the transmission system only. "Distribution utility" refers to the
regulated owner/operator of the distribution system which serves retail
customers.
Utility-Earned
Incentives - Costs paid to a utility for achieving
consumer participation in DSM programs.
Utilization Factor -
The ratio of the maximum demand of a system or part
of a system to the rated capacity of the system or part of the system.
Valley Filling -
Valley
filling is a form of load management that increases or builds, off-peak
loads. This load shape objective is desirable if a utility has surplus
capacity in the off-peak hours. If this strategy is combined with
time-or-use rates, the average rate for electricity can be lowered.
Variable Costs -
Costs,
such as fuel costs, that depend upon the amount of electric energy supplied.
Variable Prices -
Prices
that vary frequently. Prices that are not stable.
Vertical Integration
- An arrangement whereby the same company owns all
the different aspects of making, selling, and delivering a product or
service. In the electric industry, it refers to the historically common
arrangement whereby a utility would own its own generating plants,
transmission system, and distribution lines to provide all aspects of
electric service.
Volt -
A
unit of electrical pressure. It measures the force or push of electricity.
Volts represent pressure, correspondent to the pressure of water in a pipe.
A volt is the unit of electromotive force or electric pressure analogous to
water pressure in pounds per square inch. It is the electromotive force
which, if steadily applied to a circuit having a resistance of one ohm, will
produce a current one ampere.
Volt-amperes -
The
volt-amperes of an electric circuit are the mathematical products of the
volts and emperes of the client.
Voltage -
Measure
of the force of moving energy.
Waste-to-Energy -
This
is a technology that uses refuse to generate electricity. In mass burn
plants, untreated waste is burned to produce steam, which is used to drive a
steam turbine generator. In refuse-derived fuel plants, refuse is
pre-treated, partially to enhance its energy content prior to burning.
Watt -
The
electric unit of power or rate of doing work. One horsepower is equivalent
to approximately 746 watts.
Watt-Hour -
One
watt of power expended for one hour.
Western systems
Coordinating Council (WSCC) - One of the ten regional
reliability councils that make up the North American Electric Reliability
Council (NERC).
Wheeling -
The
use of the transmission facilities of one system to transmit power for
another system.
Wholesale Bulk Power
- Very large electric sales for resale from
generation sources to wholesale market participants and electricity
marketers and brokers.
Wholesale
Competition - A system whereby a distributor of power
would have the option to buy its power from a variety of power producers,
and the power producers would be able to compete to sell their power to a
variety of distribution companies.
Wholesale Power
Market - The purchase and sale of electricity from
generators to resellers (who sell to retail customers) along with the
ancillary services needed to maintain reliability and power quality at the
transmission level.
Wholesale Transition
- The sale of electric power from an entity that
generates electricity to a utility or other electric distribution system
through a utility's transmission lines.
Wholesale
Transmission Services - The transmission of electric
energy sod, or to be sold, at wholesale in interstate commerce.
Wind Energy
Conversion - A process that uses energy from the wind
and converts it into mechanical energy and then electricity.
Winter Peak -
The
greatest load on an electric system during any prescribed demand interval in
the winter season or months.
Wires Charge -
A
broad term which refers to charges levied on power suppliers or their
customers for the use of the transmission or distribution wires. |