¢/kWh
Cents per kilowatt-hour.
Abnormal Peak Day (APD):
A statistical planning standard defined as the coldest temperature that will be exceeded every 90 years, on average.�
Advanced Metering Infrastructure (AMI):
A system of advanced electric and natural gas meters that can be read remotely.
Affiliate Transaction Rules (ATR):
Rules governing interactions between a holding company and its affiliates.
Aggregation:
The combination of two or more electric loads in order to gain an advantage through volume purchasing.
Aggregator:
Any marketer, broker, public agency, city, county, or special district that combines the loads of multiple end-use customers in aiding the sale and purchase of electric energy, transmission, and other services on behalf of these customers.
Alliance for Retail Energy Markets (AREM):
An organization of electric service providers that are active in California�s retail electricity market.
American National Standards Institute (ANSI):
A private, non-profit organization (501(c)3) that administers and coordinates the U.S. voluntary standardization and conformity assessment system.
Ancillary Services:
Services necessary for the transmission of energy from resources to loads.
Arizona Corporation Commission (ACC):
A government entity created by the Arizona Constitution and comprised of five elected commissioners. Responsible for regulation of public service corporations.
Automatic Meter Reading (AMR):
A type of technology in which electronically recorded information from an electric or natural gas meter is transferred to a microprocessor-based reading device via an electric probe to allow a meter to be �read� remotely.
Availability Bid:
Bid by a Resource that indicates the minimum price at which Regulation or Operating Reserves is offered to be supplied.
Availability:
A measure of time a generating unit, transmission line, or other facility is capable of providing service, whether or not it actually is in service. Typically, this measure is expressed as a percent available for the period under consideration.
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 operating and maintenance, tax, and fuel expenses.
Balancing Account:
An account used to match the collection of actual revenues against actual costs after an adjustment for unanticipated changes in expenditures; fuel costs of major plant additions are often put into balancing accounts.
Balancing Energy Supply:
Energy not scheduled in advance that is required to meet energy imbalances in real-time.
Base Bill:
A charge calculated through multiplication of the rate from the appropriate electric rate schedule by the level of consumption.
Baseline:
The allowance of a certain amount of the first units of gas or electricity at a reduced price to all residential customers to encourage conservation of energy.
Baseload Capacity:
The minimum amount of electric power delivered or required over a given period of time at a steady rate.
Baseload Plant:
A plant, usually housing high-efficiency steam-electric units, that 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.
Below-The-Line:
Expenses of a utility that cannot be recovered through rates.
Bi-Lateral Transaction:
A transaction between two willing parties who negotiate an agreement. For example, the sale of electricity from an Independent Power Producer (IPP) to utility customers and other large customers is often the result of a bi-lateral transaction.
Bi-Lateral Transaction Schedule:
Simultaneous schedules of Load and Generation of the same MW level by a Market Participant.
Billing Demand:
The demand on which the customer is to be billed in accordance with the terms and conditions of their applicable rate schedule.
Bottleneck Facility:
A point on the system, such as a transmission line, through which all electricity must pass to get to its intended buyers. If there is limited capacity at this point, some priorities must be developed to decide whose power gets through. It also must be decided if the owner of the bottleneck may, or must, build additional facilities to relieve the constraint.
Brokering:
A system of bidding for capacity on a natural gas pipeline by which companies with the highest bid can obtain firm or assured access to natural gas supplies.
Bundled Service:
Electric service provided as a package to the consumer including all generation, transmission, distribution, ancillary and other services necessary to deliver and measure useful electric energy and power to consumers.
Buy Through:
An agreement between utility and customer to import power when the customer's service would otherwise be interrupted.
Buyer:
An entity that purchases electrical energy or services from the PX or through a Bilateral Contracts on behalf of End-Use Customer (CAISO).
California Air Resources Board (ARB):
California’s Legislature established the Air Resources Board in 1967 to attain and maintain healthy air quality; conduct research into the causes of and solutions to air pollution; and systematically attack the serious problem caused by motor vehicles, which are the major causes of air pollution in the State.
California Energy Commission:
A state agency responsible for, among other things, forecasting future energy needs and keeping historical energy data, licensing thermal power plants 50 megawatts or larger, promoting energy efficiency through appliance and building standards, and developing energy technologies and supporting renewable energy.  It is overseen by a Governor-appointed five-person board.
California Independent System Operator (CAISO):
The California entity that purchases electrical energy or services from the PX or through a Bilateral Contracts on behalf of End-Use Customer.
California Public Utility Commission (CPUC):
A government entity created by the California Constitution and comprised of five elected commissioners. Responsible for regulation of public service corporations, such as, natural gas, electric, telephone, and water companies as well as railroads and marine transportation companies
Capability:
The ability of a transmission interface between two control areas to carry real power flows, typically measured in megawatts. 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 Charge:
An element in a two-part pricing method used in capacity transactions (energy charge is the other element). The capacity charge, sometimes called Demand Charge, is assessed on the amount of capacity being purchased.
Capacity:
The amount of electric power delivered or required for which a generator, turbine, transformer, transmission circuit, station, or system is rated by the manufacturer.
Certificate of Convenience & Necessity (CC & N):
A document granting operating authority to utilities.
Circuit Switching:
A switching system that completes a dedicated transmission path from sender to receiver.
Circuit:
A conductor or a system of conductors through which electric current flows.  Or, a two-way communications path for the transmission of electromagnetic signals.
Co-Generation:
The sequential production from the same fuel source of thermal energy and electrical mechanical power, such as the generation of electricity using waste heat from an industrial process.
Co-Generator:
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).
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).
Combined Cycle:
An electric generating technology in which electricity is produced from otherwise lost waste heat exiting from one or more gas (combustion) turbines. The exiting heat is routed to a conventional boiler or to a heat recovery steam generator for utilization by a steam turbine in the production of electricity. This process increases the efficiency of the electric generating unit.
Combined Pumped-Storage Plant:
A pumped-storage hydroelectric power plant that uses both pumped water and natural stream flow to produce electricity. Combustion Turbine (CT): Essentially a permanently mounted jet engine (that works by continuously burning a mixture of fuel and compressed air in a combustion chamber to produce a jet of hot exhaust gas that spins the turbine blades) used to turn a generator. CTs are usually used to meet load during peak demand times; also called gas combustion.
Commercial:
A utility's consumers that are 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.
Community Choice Aggregators (CCA):
A community organization of electricity customers who group together to solicit bids, broker, and contract for electricity and energy services to facilitate the sale and purchase of electricity and other related services on behalf of local citizens, businesses, and itself.
Competition Transition Charges (CTC):
A nonpassable charge on the bills of each customer of the distribution utility, including those who are served under contracts with non-utility suppliers, for recovery of the utility's transition costs arising from deregulation.
Competitive Services:
All aspects of retail electric service except those services specifically defined by the Utility Commission as noncompetitive services or noncompetitive services as defined by the Federal Energy Regulatory Commission (FERC).
Congestion:
A condition that occurs when insufficient transfer capacity is available to implement all of the preferred schedules for electricity transmission simultaneously.
Conservation Pricing:
Pricing that provides an incentive to reduce average or peak use, or both.
Consolidated Billing:
Consolidated billing is when either the Energy Service Provider (ESP) or the utility will consolidate all energy, transmission and distribution charges on one invoice.
Constraints:
Physical and operational limitations on the transfer of electrical power through transmission facilities.  Consumer-Owned Utility: Independent, usually electric, utility established to provide at-cost electricity to its members.  Also known as a "cooperative."  The utility 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.
Contract Path:
A specific contiguous electrical path from a Point of Receipt to a Point of Delivery for which transfer rights have been contracted. Contract Price: Price of fuels marketed on a contract basis covering a period of one or more years. Contract prices reflect market conditions at the time the contract was negotiated and therefore remain constant throughout the life of the contract or are adjusted through escalation clauses. Generally, contract prices do not fluctuate widely.
Control Area Operator (CAO):
The operator of an electric power system bound by interconnection (tie-line) metering and telemetry.  It controls generation to maintain its interchange schedule with other control areas, to maintain instantaneous load/resource balance within its system, and contributes to frequency regulation of the interconnection.
Convergence:
Providers that can deliver products that compete with those now delivered by other networks.
Cooperative (Co-Op):
A non-profit, customer-owned electric utility responsible for distributing power, usually to rual areas.
Core/Noncore:
Two basic customer classes. Core includes residential and small business users.  Noncore includes large industrial users who generally also have the ability to switch to other fuels.  Some large companies prefer to be treated like core customers, have the utility purchase and deliver gas or electricity for them, but pay a handling fee to the utility for special treatment.
Cost of Service (COS):
A method of using utility costs in rate design; a cost of service study measures a utility's costs incurred in serving each customer class, including a reasonable return on investment.
Cost Responsibility Surcharge (CRS):
The mechanism by which the CPUC has allocated costs associated with past utility and Department of Water Resources commitments to Direct Access customers.
Cost-Based Pricing:
A method of setting rates so that a utility can recover the costs of providing that particular service.
Cramming:
Refers to the placement of charges on a consumer's bill that the consumer has not authorized.
Critical Peak Pricing (CPP):
A time-of-use pricing that effectively reduces a customer's electricity consumption.
Current (Electric):
A flow of electrons in an electrical conductor. The strength or rate of movement of the electricity is measured in amperes.
Curtailment:
The temporary reduction or interruption of service to customers because of projected or actual supply or capacity constraints.
Customer Choice:
Allowing all customers to purchase kilowatt-hours of electricity from any of a number of companies that compete with each other.
Customer Inquiry Service Request (CISR):
A form which customers use to grant authoization to a disigned agent or consultant to receive service account information or act on their behalf.
Cycle Billing:
The process of reading only part of a system's meters each day and then billing that portion of its customers.  By the end of the cycle, usually a month, the complete system is read and billed, and a new cycle begins.
Day Ahead Market:
The market administered by the Independent Transmission Provider in which energy, ancillary services, and transmission services are scheduled and sold Day-Ahead, consistent of the Day-Ahead scheduling process, price calculations, and settlements.
Day-Ahead Schedule:
A schedule prepared by a Scheduling Coordinator or the Independent System Operator before the beginning of a trading day. This schedule indicates the levels of generation and demand scheduled for each settlement period that trading day.
Day-Ahead:
Nominally, the twenty-four hour period directly preceding the Operating Day, except when this period may be extended by the Independent Transmission Provider to accommodate holidays and weekends.
Decommissioning:
The process of dismantling nuclear power plants after they have stopped producing power, including disposal of radioactive waste materials, the destruction or resale of plant equipment, and the return of the power plant site to its original state.
Deferred Fuel Costs:
Those fuel costs incurred in one accounting period which are not reflected in billings to customers until a later billing period.
Delivering Party:
The entity supplying capacity and energy to be transmitted at Point(s) of Receipt.
Delivery Point:
The location where a transaction terminates. A delivery point can be a delivery node, an aggregation of delivery nodes, an interface, or a trading hub.
Demand Side Management (DSM):
Measures or programs undertaken by a utility designed to influence the level or timing of customer demands for energy in order to optimize the use of available supply resources, thus allowing suppliers to defer the purchase of additional generating capacity.
Demand:
The rate at which power is delivered during any specified period of time. Demand may be expressed in kilowatts, kilovolt-amperes or other suitable units.
Department of Energy (DOE):
A cabinet-level, executive department of the federal government responsible for a variety of regulatory, research, and marketing programs related to energy production and use.
Department of Water Resources (California) (DWR):
Operates and maintains the State Water Project, including the California Aqueduct. Also provides dam safety and flood control services, assists local water districts in water management and conservation, promotes recreational opportunities, and plans for future statewide water needs.
Deregulation:
The elimination or reduction of governmental controls on pricing, service, entry, or safety of a utility or group of utilities.
Direct Access (DA):
The ability of a retail customer to purchase commodity electricity directly from the wholesale market rather than through a local distribution utility.
Direct Access Service Request (DASR):
Request for enrollment, termination, or other change for Direct Access.
Direct Embedded Cost (DEC):
The total current cost of owning, operating and maintaining a utility’s existing system. Under an embedded cost structure, a substantial portion reflects historical capital investments, including depreciation and return on investment.
Distribution:
The delivery of electricity to retail customers (including homes, businesses, etc.).
Distributed Generation (DG):
Also called Self-Generation, whereby consumers use small-scale power generation technologies (typically in the range of 3 to 10,000 kW) located close to where electricity is used (e.g., a home or business) to provide an alternative to or an enhancement of the traditional electric power system.
Distribution Systems:
The portion of an electric system that is dedicated to delivering electric energy to an end user.
Edison Electric Institute (EEI):
The association of U.S. shareholder-owned electric companies, international affiliates, and industry associates worldwide.
Electric Plant:
A facility containing prime movers, electric generators, and auxiliary equipment for converting mechanical, chemical, and/or fission energy into electric energy.
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 Service Provider (ESP):
A non-utility that provides electric service to customers within the service territory of an electric utility.
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 Action Plan (EAP):
California’s principal energy plan approved by the CPUC and the California Energy Commission, which identifies specific goals and actions to eliminate energy outages and excessive price spikes in electricity or natural gas.
Energy Cost Adjustment Billing Factor:
The positive or negative surcharge on customers’ bills used to recover energy costs in rates.
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. These programs reduce overall electricity consumption (reported in megawatt-hours), often without explicit consideration for the timing of program-induced savings. 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. Examples include high-efficiency appliances, efficient lighting programs, high-efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives, and heat recovery systems.
Energy Policy Act of 1992:
This federal legislation created a new class of power generators, exempt wholesale generators, that are exempt from the provisions of the Public Holding Company Act of 1935 and grants the authority to the Federal Energy Regulatory Commission to order and condition access by eligible parties to the interconnected transmission grid.
Energy Receipts:
Energy generated by one electric utility system and received by another system through one or more transmission lines.
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:
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.
Environmental Impact Report (EIR):
A report prepared on the potential effects of a project proposed by a utility on the environment.
Environmental Portfolio Standards (EPS):
A ruling by the Commission that requires any company serving electricity to an end-user to generate a portion of that electricity through renewable technologies such as wind, solar, biomass generators or landfill gas recovery.
Federal Energy Regulatory Commission (FERC):
A Federal independent regulatory body within the Department of Energy that regulates interstate gas and electric rates and facilities, as well as hydroelectric plant licenses.
Federal Power Act (FPA):
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 Trade Commission (FTC):
An independent agency that enforces federal consumer protection and antitrust laws.
Firm Capacity:
When referring to interstate pipeline, backbone transmission, or storage, firm capacity is capacity that is available under virtually all operating conditions 365 days a year.
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.
Flat Rate Service:
A rate payment plan by which customer pays a single monthly, quarterly, or annual amount for unlimited use of a utility service.
Footprint:
The area in which a specific transmission can be received.
Forced Outage:
The shutdown of a generating unit, transmission line or other facility, for emergency reasons or a condition in which the generating equipment is unavailable for load due to unanticipated breakdown.
Any naturally occurring organic fuel, such as petroleum, coal, and natural gas.
Full-Forced Outage:
The net capability of main generating units that is unavailable for load for emergency reasons.
Fully Allocated Costs:
Embedded costs that include both direct and indirect costs.
Futures Market:
Arrangement through a contract for the delivery of a commodity at a future time and at a price specified at the time of purchase. The price is based on an auction or market basis. This is a standardized, exchange-traded, and government regulated hedging mechanism.
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.
Generation Capacity:
The sustained maximum net output of a Generator, measured in megawatts, as demonstrated by the performance of a test or through actual operation as defined in the Independent Transmission Provider Procedures.
Generation Company:
A regulated or non-regulated entity (depending upon the industry structure) that operates and maintains existing generating plants. The generation company 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, the generation company is sometimes used to describe a specialized "marketer" for the generating plants formerly owned by a vertically integrated utility.
Generation:
The production of the actual megawatts of electricity or purchase of electricity through the wholesale market.
Generator:
A facility capable of supplying energy, capacity and/or ancillary services that is accessible to the service area.
Geothermal Energy:
Energy from the internal heat of the earth, which may be residual heat, friction heat, or a result of radioactive decay. The heat is found in rocks and fluids at various depths and can be extracted by drilling and/or pumping.
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.
Gigawatt-hours (gWh):
One billion watt-hours.
Green Pricing:
A program offered by an Electric Service Provider where customers elect to pay a rate premium for renewable generated electricity.
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.
Greenhouse Gas (GHG):
Components of the atmosphere that contribute to the greenhouse effect. I.e. absorbing and warming the earth's surface and contributing to climate change. Some greenhouse gases occur naturally in the atmosphere, while others result from human activities. Naturally occurring greenhouse gases include water vapor, carbon dioxide, methane, nitrous oxide, and ozone. Certain human activities, however, add to the levels of most of these naturally occurring gases.
Grid:
The layout of an electrical distribution system.
Gross Generation:
The total amount of electric energy produced by a generating facility, as measured at the generator terminals.
Heat Rate:
A measure of the amount of thermal energy needed to generate a given amount of electric energy.
Hedging Contracts:
Contracts that establish future prices and quantities of electricity independent of the short-term market. Derivatives may be used for this purpose.
Hour-Ahead Market:
The electric power futures market that is established 1-hour before delivery to End-Use Customers.
Hourly Peak:
The maximum demand for energy from a transmission or distribution system in any hourly period of time.
Hydroelectric Plant:
A plant in which the turbine generators are driven by falling water.
Hydroelectric Power:
The harnessing of flowing water to produce mechanical or electrical energy.
Imbalance Energy:
Imbalance energy is energy from regulation, spinning and non-spinning reserves, or replacement reserve, or energy from other generating units, system units, system resources, or loads that are able to respond to the ISO's request for more or less energy.
Impact Fee:
A fee charged to developers to cover part or all of the costs of providing service.
Import:
Energy that is delivered to an Independent Transmission Provider service area interconnection from another service area.
Incremental Energy Rate:
A measure of the efficiency of an electric utility’s power production.
Independent Power Producer (IPP):
Any entity not regulated by the government as a public utility that owns or operates an electricity generating facility and offers electric power for sale to utilities and/or the public (also known as Non-Utility Generator).
Independent Scheduling Administrator (ISA):
An entity, independent of trasmission-owning organizations, intended to facilitate non-discriminatory retail direct access using the transmission system. (This term is commonly used in Arizona).
Independent System Operator (ISO):
The independent system operator (ISO) has been granted the authority by multiple utilities to operate in a nondiscriminatory manner all the transmission assets of a fixed geographic area.
Industrial:
This utility customer class is generally defined as manufacturing, construction, mining agriculture, fishing and forestry establishments Standard Industrial Classification (SIC) codes 01-39. The utility may classify industrial service using the SIC 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.
Interconnection:
In a competitive power producer context, the point at which the transmission lines carrying the electricity output of a power facility connects with the utility grid, usually the local utilities nearest substation.
Intermediate Capacity:
Capacity intended to operate fewer hours per year than baseload capacity but more than peaking capacity.
Internal Combustion Plant:
A plant in which the prime mover is an internal combustion engine. 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.
Interruptible Capacity:
Interstate pipeline, backbone transmission or storage capacity, which may be available from time to time, but cannot be assured under all operating conditions.
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. In some instances the load reduction may be affected by direct action of the system operator (remote tripping) after notice to the consumer in accordance with contractual provisions.
Interval Data Recorder (IDR):
A metering device capable of recording minimum data required. Minimum data requirements include hourly data for direct access settlement process; and data for utility billing including 15-minute demand data. Also referred to as Hourly Metering.
Investor-Owned Utilities (IOU):
Publicly traded corporations that provide electric service for its customers and earns a profit for its shareholders.
Irrigation District:
A political entity responsible for securing and distributing water supplies for agricultural and municipal customers. The Utility Commission does not have regulatory oversight of irrigation districts.
Kilovolt (kV):
Unit of measurement of electromotive force equal to 1,000 volts. A volt is the force required to produce a current of one ampere through a resistance of one ohm.
Kilowatt (kW):
A unit of power equal to 1,000 watts.
Kilowatt hour (kWh):
A kilowatt hour is the amount of kilowatts (1,000 watts) of electricity used in one hour of operation.
Kva:
kilovolt ampere.
kVARh:
kilovar-hours.
Load Aggregation:
See Aggregation.
Load Forecast:
Independent forecasts by the Independent Transmission Provider of load within the Independent Transmission Provider's service area used in its scheduling decisions to ensure reliable operation of the system.
Load Profile:
An estimate of a group of customers’ (e.g., residential, small commercial, large commercial) hourly consumption over a period of time. Load profiles are statistical sampling techniques which allows customers that have commen end-use characteristics but with load variances to be represented by a single measurement.
Load Ratio Share:
The ratio of a Load-Serving Entity’s load to total load within the service area during a specified time period.
Load Serving Entity (LSE):
An entity, including a municipal electric system and an electric cooperative, authorized by law, regulatory authorization or requirement, agreement, or contractual obligation to supply energy, to retail customers located within the Independent Transmission Provider's service area, including an entity that takes service directly from the Independent Transmission Provider to supply its own load in the Independent Transmission Provider's service area.
Load Shedding:
The systematic reduction of system demand by temporarily decreasing Load in response to Transmission System or area capacity shortages, system instability, or voltage control considerations.
Load:
A term that refers to either a consumer of Energy or the amount of Energy (MWh) or demand (MW) consumed.
Local Publicly Owned Electric Utilities:
A municipal corporation, a municipal utility district, an irrigation district, or a joint power authority (which can include one or more of the agencies mentioned above) furnishing electric services over its own transmission facilities, or furnishing electric service over its own or its members' distribution system.
Long Term Fixed Price Contract:
A bilateral transaction often for an extended period of time at a set amount. For example, these contracts may be 1 year, 5 years, 10 years and could be for peak (Hours ending 7-22) or off-peak (Hours ending 1-6 and 23, 24) hours or a full day contract.
Marginal Cost:
The cost of producing one additional unit of a particular product or service.
Market Based Pricing:
Electric service prices determined in an open market system of supply and demand under which the price is set solely by agreement as to what a buyer will pay and a seller will accept. Such prices could recover less or more than full costs, depending upon what the buyer and seller see as their relevant opportunities and risks.
Market Clearing Price (MCP):
The price at which supply equals demand for the Day Ahead and/or Hour Ahead Markets.
Market Participant:
A participant in the electric or gas marketplace, either as a purchaser, seller, broker, or implementer of energy trades, ancillary services trades, and transmission access trades.
Master Metered:
The system by which multi-unit buildings or mobile home parks are connected to a single meter. The master-meter holder receives a single bill from the utility and collects from tenants individually. The utility has no liability for repairs or maintenance beyond the master meter.
Meter Data Management Agent (MDMA):
The entity that takes raw meter outputs, validates them using validation, editing and estimating rules, adds corollary information needed to characterize the customer, and makes complete customer information available to others for use in various applications.
Meter Reading Service Provider (MRSP):
An entity providing meter reading service.
Meter Reading Service:
All functions related to the collection and storage of consumption data.
Meter Retrofit Programs:
Programs targeted toward un-metered homes and businesses that either install a new meter or repair an existing meter to provide for billing based on volume of use.
Meter Service Provider (MSP):
An entity providing meter service.
Meter Service:
All functions related to measuring electricity consumption, including installation and repair of meters, but not including meter reading.
Meter:
The instrument for measuring and indicating or recording the flow of electricity that has passed through it.
Mhz:
Megahertz.
Municipally Owned Utility (MUNI):
A utility owned and operated by a city or county. The Utility Commission does not have regulatory authority over munis.
Must Take Resources:
Generation resources including QF generating units, nuclear units, and pre-existing power purchase contracts with minimum energy take requirements that are dispatched by the ISO before PX or Direct Access Generation.
MW:
A unit of power equal to 1,000,000 watts.
MWh:
Megawatt-hours.
National Association of Regualtory Utility Commission (NARUC):
A non-profit organization founded in 1889. Its members include the governmental agencies that are engaged in the regulation of utilities and carriers in the fifty States, the District of Columbia , Puerto Rico and the Virgin Islands. NARUC’s member agencies regulate the activities of telecommunications, energy, and water utilities.
National Resources Defense Council (NRDC):
An environmental action organization.
Natural Gas:
A naturally occurring mixture of hydrocarbon and nonhydrocarbon gases found in porous geological formations beneath the earth's surface, often in association with petroleum. The principal constituent is methane.
Net Capacity:
The maximum capacity (or effective rating), modified for ambient limitations, that a generating unit, power plant, or electric system can sustain over a specified period, less the capacity used to supply the demand of station service or auxiliary needs.
Net Generation:
Gross generation minus the electric energy consumed at the generating station for station use.
Net Metering:
Allows the electric meters of customers with generating facilities to turn backwards when the generators are producing energy in excess of the customers' demand, enabling customers to use their own generation to offset their consumption over a billing period.
Net Operating Income:
The amount of revenue from utility operations remaining after operation and maintenance expenses, depreciation expenses, and taxes are deducted. The revenues and expenses that produce net operating income are commonly referred to as "above-the-line" items.
Non-Bypassable Charge:
A special conditions or ezpressly exemption from charges such as The California Department of Water Resources Bond Charge (DWR), Power Charge Indifference Adjustment (PCIA), Competition Transition Charge (CTC), Trust Transfer Amount (TTA) or Public Purpose Program (PPP).
Non-Utility Generators (NUG):
Facilities for generating electricity that are not owned exclusively by an electric utility and that operate connected to an electric utility system.
Nuclear Energy Institute:
Policy organization of the nuclear energy and technologies industry and participates in both the national and global policy-making process. NEI’s objective is to ensure the formation of policies that promote the beneficial uses of nuclear energy and technologies in the U.S. and around the world.
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 Plant:
A facility in which heat produced in a reactor by the fissioning of nuclear fuel is used to drive a steam turbine.
Nuclear Regulatory Commision (NRC):
An independent agency established by the Energy Reorganization Act of 1974 to regulate civilian use of nuclear materials. The NRC is headed by a five-member Commission.
Obligation to Serve:
A regulatory obligation of a utility to provide electric planning services for all customers and to assure adequate supply of electricity now and in the future.
Off Peak:
Blocks of time when energy demand and price is low.
Ohm:
The unit of measurement of electrical resistance. The resistance of a circuit in which a potential difference of 1 volt produces a current of 1 am pere.
On-Peak:
Blocks of time when energy demand and price is high.
Open Access:
A regulatory mandate to allow others to use a utility’s transmission and distribution facilities to move bulk power from one point to another on a nondiscriminatory basis for a cost-based fee.
Peak Demand:
The maximum level of use by customers of a system during a specified period of time; may apply to a class of customers only or the entire company, depending on the intended use of the data.
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.
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.
Performance Based Ratemaking (PBR):
Under performance-based ratemaking, non-fuel costs are indexed to changes in inflation and customer growth, minus a productivity target, such that base rates to customers would be expected to decline in real terms.
Plant Use Electricity:
The electric energy used in the operation of a plant. This energy total is subtracted from the gross energy production of the plant; for reporting purposes the plant energy production is then reported as a net figure. The energy required for pumping at pumped-storage plants is, by definition, subtracted, and the energy production for these plants is then reported as a net figure.
Point of Delivery (POD):
The point where facilities owned, leased or under license by a customer connect to the utility's facilities.
Pooling:
An informal name for a settlement process in which all participating companies first receive their costs and then earn the same rate of return.
Power Exchange:
An independent agency responsible for conducting an auction for the generators seeking to sell energy and for loads, which are not otherwise being served by bilateral contracts. The Power Exchange will be responsible for scheduling generation in its scheduling (e.g., day-ahead, hour-ahead) markets, for determining hourly market clearing prices for its market, and for settlement and billing for suppliers and UDCs using its market.
Power Marketers:
Business entities engaged in buying, selling, and marketing electricity. Power marketers do not usually 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 the 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.
Power Purchase Agreements (PPA):
Agreements between utilities and power generators to procure power on behalf of the utility’s consumers.
Power:
The rate at which energy is transferred. Electrical energy is usually measured in watts. Also used for a measurement of capacity.
Provider of Last Resort (POLR):
Serves as a back-up electric service provider in the competitive retail electric market in the event a retail electric provider leaves the market for any reason.
Public Goods Charge (PGC):
A non-bypassable surcharge imposed on all retail sales to fund public goods research, development and demonstration, and energy efficiency activities, and support low-income assistance programs.
Public Owned Utility (POU):
A utility owned by its customers, who elect the organization’s board of directors.
Public Power:
Municipal utilities and cooperatives that can generate, transmit and distribute electric power and are exempt from income and other state/federal taxes.
Qualifying Faciltiy(QF):
A cogeneration facility or small power production plant that can sell its electricity to public utilities.
Rate Base:
This is generally calculated by adding up the original cost of all the physical assets and then subtracting the accumulated depreciation and deferred income tax.
Rate Design:
The various rates per class of customer or service charged by a utility.
Rate Structure:
The various rates charged by a utility for its services.
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.
Real Time Market:
The market administered by the Independent Transmission Provider for energy, ancillary services, and transmission services in real time, consisting of the real time scheduling process, dispatch, price calculations, and settlements.
Real Time:
Referring to the time period in which transmission and generation dispatch instructions are ultimately given.
Regional Transmission Organization (RTO):
A regional transmission organization established to operate the high-voltage interstate transmission system in a reliable, non-discriminatory manner, and to coordinate with other critical entities, such as participating utilities and generators, neighboring RTO's and power exchanges.
Regulated Utility:
A Company, privately or publicly owned, which provides utility services such as electricity, gas, water or phone to the public.
Regulation:
Government control over the obligations and rights of a public utility for the purpose of providing the consuming public both the benefits that would be achieved by competition and the efficiencies that result from allowing a monopolistic company to operate.
Reliability:
The degree of performance of the elements of the bulk electric system that results in electricity being delivered to customers within accepted standards and in the amount desired. Reliability may be measured by the frequency, duration, and magnitude of adverse effects on the electric supply. Electric system reliability can be addressed by considering two basic and functional aspects of the electric system — Adequacy and Security.
Remote Access (RA):
The ability to gain access to a computer via another computer that is at a different location.
Renewable Portfolio Standard (RPS):
A program approved by Legislation that requires utilities to reach the goal of procuring 20 percent of their retail sales from renewable sources by 2017. The CPUC accelerated that goal to 2010.
Renewable Resources:
Naturally, but flow-limited resources that can be replenished. They are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. Some (such as geothermal and biomass) may be stock-limited in that stocks are depleted by use, but on a time scale of decades, or perhaps centuries, they can probably be replenished. Renewable energy resources include: biomass, hydro, geothermal, solar and wind. In the future, they could also include the use of ocean thermal, wave, and tidal action technologies. Utility renewable resource applications include bulk electricity generation, on-site electricity generation, distributed electricity generation, non-grid-connected generation, and demand-reduction (energy efficiency) technologies.
Re-regulation:
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. Regulation could employ the same or different regulatory practices as those used before restructuring.
Reserve Margin:
The amount of unused capacity or idle capacity that a utility has at the period of peak demand.
Residential:
The residential sector is defined as private household establishments which 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. For the residential class, do not duplicate consumer accounts due to multiple metering for special services (water, heating, etc.). Apartment houses are also included.
Resource Adequacy (RA):
A regulatory mandate in California to ensure there are adequate resources for electrical system reliability.
Resource Adequacy Requirement (RAR):
The Resource reserve margin, stated as a ratio of the reserves to the forecast peak load during the final year of the planning horizon, expressed as a percentage.
The process of replacing a monopoly system of electric utilities with competing sellers, allowing individual retail customers to choose their electricity supplier but still receive delivery over the power lines of the local utility. It includes the reconfiguration of the vertically integrated electric utility.
Retail Competition:
A system under which more than one electric provider can sell to retail customers, and retail customers are allowed to buy from more than one provider.
Retail Market:
A market in which electricity and other energy services are sold directly to the end-use customer.
Retail Wheeling:
The process of moving electric power from a point of generation across one or more utility-owned transmission and distribution systems to a retail customer.
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.
RFP:
Request for Proposal.
Running and Quick Start Capability:
The net capability of generating units that carry load or have quick-start capability. In general, quick-start capability refers to generating units that can be available for load within a 30-minute period.
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.
Scheduling Coordinators (SC):
Entities certified by the Federal Energy Regulatory Commission that act as a go-between with the Independent System Operator on behalf of generators, supply aggregators (wholesale marketers), retailers, and customers to schedule the distribution of electricity.
Service Area:
The territory in which the utility has been granted a Certificate of Convenience and Necessity and is authorized by the Commission to provide electric service.
Service Line:
The line extending from a distribution line or transformer to the customer's premises or point of delivery.
Settlement:
A negotiated agreement between two or more parties involving a contract for services, purchase of power, or policy/rulemaking, which remains subject to final CPUC approval.
Small Power Producer:
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. (See Code of Federal Regulations, Title 18, Part 292.)
Solar Power:
Electric power generated by using sunlight either to create electron flow in a photovoltaic cell or to heat a fluid that is used in the operation of an engine or turbine generator.
Spot Market:
A commodity market for the purchase and sale of electric energy for a short-term basis (often one day or less.)
Standard Industrial Classification Codes (SIC):
A set of codes developed by the Office of Management and Budget, which categorizes business into groups with similar economic activities.
Standard Offer Service (SOS):
Bundled service offered by a Utility or Utility Distribution Company to all consumers in the Utility's or Utility Distribution Company's service territory at regulated rates including metering, meter reading, billing and collection services, demand side management services including but not limited to time-of-use, and consumer information services. All components of standard offer service shall be deemed noncompetitive as long as those components are provided in a bundled transaction under Corporation Commission Rules.
Standby Facility:
A facility that supports a utility system and is generally running under no-load. It is available to replace or supplement a facility normally in service.
Stranded Costs:
Prudent costs incurred by a utility that may not be recoverable under market-based deregulation. Examples are un-depreciated generating facilities, deferred costs, and long-term contract costs.
Stranded investments:
Investments made by utilities in order to service customers with the understanding that the investments would be recovered through future electric rates. Stranded investment is the difference between the utility's investment in its plant, and the market value of the plant after deregulation begins.
Submetering:
Where the master-metered customer installs, owns, maintains, and reads the meters for billing the tenants.
Substation:
An assemblage of equipment that switches, changes or regulates voltage in the electric transmission and distribution system.
Supply Costs:
All costs of the production of electric energy as measured at the point the electric energy is transferred to the local distribution utility for delivery to a customer.
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.
Tariffs:
The documents filed with the Corporation Commission which list the services and products offered by the utility and which set forth the terms and conditions and a schedule of the rates and charges for those services and products.
Time of Use (TOU):
A rate for electrical energy that varies with time, generally tracking the cost of generation at the time.
Transformer:
An electrical device for changing the voltage of alternating current.
Transmission System (Electric):
An interconnected group of electric transmission lines and associated equipment for moving or transferring electric energy in bulk between points of supply and points at which it is transformed for delivery over the distribution system lines to consumers, or is delivered to other electric systems.
Transmission:
The movement or transfer of electric energy over an interconnected group of lines and associated equipment between points of supply and points at which it is transformed for delivery to consumers, or is delivered to other electric systems. Transmission is considered to end when the energy is transformed for distribution to the consumer.
Transportation:
In the natural gas industry, the movement of natural gas via pipelines, including transmission from the wellhead to the customer.
Unbundled:
Electric service elements provided and priced separately, including, but not limited to, such service elements as generation, transmission, distribution, must-run generation, metering, meter reading, billing and collection, and ancillary services. Unbundled Service may be sold to consumers or to other Electric Service Providers.
Useful Thermal Output:
The thermal energy made available for use in any industrial or commercial process, or used in any heating or cooling application, i.e., total thermal energy made available for processes and applications other than electrical generation.
Utility Distribution Company (UDC):
An entity that provides regulated services to customers.
Utility Electric Generation:
In the natural gas industry, a gas-fired electric utility power.
Utility Retained Generation (URG):
The generation owned directly by the Investor-Owned Utilities, which was “retained” by the utilities and not sold off as part of deregulation.
Utility:
The public service corporation providing electric service to the public in compliance with state law, except in those instances set forth in Corporation Commission Rules.
Value of Service:
A monetary measure of the usefulness or necessity of utility service to a customer group.
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.
Voltage:
A measure of electric potential, which is the condition that causes electric energy to flow. Voltage has the following characteristics: a push or force, does nothing by itself, has the potential to do work, appears between two points, and is always there.
Watt:
A unit of electrical power, equal to the power developed in a circuit by a current of one ampere flowing through a potential difference of one volt.
Watt-hour:
An electrical energy unit of measure equal to 1 watt of power supplied to, or taken from, an electric circuit steadily for 1 hour.
Western Area Power Administration (WAPA):
A federal government agency responsible for the marketing and transmission of electric power produced by government-owned plants in 15 central and western states, including Arizona and California.
Wheeling:
The transmission of electricity by an entity that does not own or directly use the power it is transmitting.
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.