ENERGY MARKETING GLOSSARY - Powerex Cycle: An electric ... by the exhaust gas of the combustion turbine(s). Combined Pumped-Storage Plant: A pumped-storage …

ENERGY MARKETING GLOSSARY

Participant Guide Page 119


Acre-Feet: The amount of water it takes to coverone acre to a depth of one foot. This measure isused to describe the quantity of storage in ahydrosystem reservoir. An average household offour will use approximately one-acre foot of waterper year.

Actual Peak Load Reductions: The actualreduction in annual peak load (measured inkilowatts) achieved by consumers that participatein a utility DSM program. It reflects the realchanges in the demand for electricity resultingfrom a utility DSM program that is in effect at thesame time the utility experiences its annual peakload, as opposed to the installed peak loadreduction capability (i.e., Potential Peak LoadReduction). It should account for the regularcycling of energy efficient units during the periodof annual peak load.

Adequate Regulating Margin: The minimum on-line capacity that can be increased or decreasedto allow the system to respond to all reasonabledemand changes in order to be in-compliancewith the NERC Control Performance Criteria.

Aggregator: A company that consolidates anumber of individual users and/or supplies into agroup.

Alternating Current (AC): A periodic current, theaverage value of which over a period is zero.Unless distinctly specified otherwise, the termrefers to a current that reverses its direction atregularly recurring intervals of time and that hasalternately positive and negative values. Almostall energy utilities generate AC electricity becauseit can easily be transformed to higher or lowervoltages.

Ampere: The unit of measurement of electricalcurrent produced in a circuit by 1 volt actingthrough a resistance of 1 ohm. The measure ofthe rate of the flow of electrons past a given pointin an electric conductor such as a power line.

Ancillary Services: Ancillary services are thoseservices necessary to support the transmission of

energy from resources to loads while maintainingreliable operation of the Transmission Provider'stransmission system in accordance with GoodUtility Practice.

Annual Effects: The total effects in energy use(measured in megawatthours) and peak load(measured in kilowatts) caused by all participantsin the DSM programs that are in effect during agiven year. It includes new and existingparticipants in existing programs (thoseimplemented in prior years that are in placeduring the given year) and all participants in newprograms (those implemented during the givenyear). The effects of new participants in existingprograms and all participants in new programsshould be based on their start-up dates (i.e., ifparticipants enter a program in July, only theeffects from July to December should bereported). If start-up dates are unknown andcannot be reasonably estimated, the effects canbe annualized (i.e., assume the participants wereinitiated into the program on January 1 of thegiven year). The Annual Effects should considerthe useful life of efficiency measures, byaccounting for building demolition, equipmentdegradation and attrition.

Annual Transmission Costs: The total annualcost of the Transmission System shall be theamount specified in Schedule 1 until amended bythe Transmission Provider or modified by theCommission.

APPA: American Public Power Association. Thetrade association of publicly held power entities.

Arbitrage: The simultaneous purchase and saleof different financial instruments that haveidentical risk profiles.

Asset: An economic resource, tangible orintangible, which is expected to provide benefitsto a business.

Asynchronous: Not in sync – usually applied torotating equipment which generates power at adifferent frequency than the power grid.



Synchronization with the grid is obtained throughsolid state inverters.

Automatic Generation Control (AGC):Equipment which automatically adjusts an electricpower control area’s generation from a centrallocation.

Availability: Unit of measure for the actual time atransmission line or generating unit is capable ofproviding service, if called upon.

Available but not Needed Capability: Netcapability of main generating units that areoperable but not considered necessary to carryload, and cannot be connected to load within 30minutes.

Available Transfer Capacity (ATC): Unit ofmeasure for the transfer capability remaining inthe physical transmission network for furthercommercial activity, over and above committeduses.

Average Annual Megawatt or AverageMegawatt (aMW): A unit of energy output over ayear that is equal to the energy produced by thecontinuous operation of one megawatt of capacityover a period of time (Equal to 8,760 megawatt-hours.)

Average Revenue per Kilowatt-hour: Theaverage revenue per kilowatt-hour of electricitysold by sector (residential, commercial, industrial,or other) and geographic area (State, Censusdivision, and National), is calculated by dividingthe total monthly revenue by the correspondingtotal monthly sales for each sector andgeographic area.

Backwardation: In the context of futures trading,a market condition in which futures prices aregradually lowered in the future months of delivery.

Barrel: A volumetric unit of measure for crude oiland petroleum products equivalent to 42 U.S.gallons.

Base Bill: A charge calculated throughmultiplication of the rate from the appropriateelectric rate schedule by the level ofconsumption.

Baseload: The minimum amount of electricpower delivered or required over a given period oftime at a steady rate.

Baseload Capacity: The generating equipmentnormally operated to serve loads on anaround-the-clock basis.

Baseload Plant: A plant, usually housing highefficiency steam-electric units, which is normallyoperated to take all or part of the minimum loadof a system, and which consequently produceselectricity at an essentially constant rate and runscontinuously. These units are operated tomaximize system mechanical and thermalefficiency and minimize system operating costs.

Basis: The difference between the spot or cashprice of a financial instrument or commodity andthe price of the futures contract or a relatedderivative instrument. A seller is “short of thebasis” if selling spot goods hedged by thepurchases of futures. Someone who is “long ofthe basis” has bought spot goods and hedgedthem by the sale of futures. A basis point is onepercent of one percent.

Basis: In the context of futures trading, thedifference between the futures price for a givencommodity and the comparable cash or spot pricefor the commodity.

Bbl: The abbreviation for barrel.

Bcf: The abbreviation for 1 billion cubic feet.

Bituminous Coal: The most common coal. It isdense and black (often with well-defined bands ofbright and full material). Its moisture contentusually is less than 20 percent. It is used forgenerating electricity, making coke, and spaceheating. Comprises five groups classifiedaccording to the following ASTMSpecification D388-84, on a dry mineral-matter-free (mmf) basis for fixed-carbon andvolatile matter and a moist mmf basis for calorificvalue.

LV = Low volatile bituminous coal

MV = Medium volatile bituminous coal

HVA = High volatile A bituminous coal



HVB = High volatile B bituminous coal

HVC = High volatile C bituminous coal

Boiler: A device for generating steam for power,processing, or heating purposes or for producinghot water for heating purposes or hot watersupply. Heat from an external combustion sourceis transmitted to a fluid contained within the tubesin the boiler shell. This fluid is delivered to anend-use at a desired pressure, temperature, andquality.

Btu (British Thermal Unit): A standard unit formeasuring the quantity of heat energy equal tothe quantity of heat required to raise thetemperature of 1 pound of water by 1 degreeFahrenheit.

Capability: The maximum load that a generatingunit, generating station, or other electricalapparatus can carry under specified conditions fora given period of time without exceedingapproved limits of temperature and stress.

Capacity: The amount of electric powerdelivered or required for which a generator,turbine, transformer, transmission circuit, station,or system is rated by the manufacturer.

Capacity (Purchased): The amount of energyand capacity available for purchase from outsidethe system.

Capacity Charge: An element in a two-partpricing method used in capacity transactions(energy charge is the other element). Thecapacity charge, sometimes called DemandCharge, is assessed on the amount of capacitybeing purchased.

Capital (Financial): The line items on the rightside of a balance sheet that include debt,preferred stock, and common equity. A netincrease in assets must be financed by anincrease in one or more forms of capital.

Circuit: A conductor or a system of conductorsthrough which electric current flows.

Coal: A black or brownish-black solidcombustible substance formed by the partialdecomposition of vegetable matter without access

to air. The rank of coal, which includesanthracite, bituminous coal, subbituminous coal,and lignite, is based on fixed carbon, volatilematter, and heating value. Coal rank indicates theprogressive alteration from lignite to anthracite.Lignite contains approximately 9 to 17 million Btuper ton. The contents of subbituminous andbituminous coal range from 16 to 24 million Btuper ton and from 19 to 30 million Btu per ton,respectively. Anthracite contains approximately22 to 28 million Btu per ton.

Cogenerator: A generating facility that produceselectricity and another form of useful thermalenergy (such as heat or steam) used forindustrial, commercial, heating, or coolingpurposes. To receive status as a qualifying facility(QF) under the Public Utility Regulatory PoliciesAct (PURPA), the facility must produce electricenergy and "another form of useful thermalenergy through the sequential use of energy," andmeet certain ownership, operating, and efficiencycriteria established by the Federal EnergyRegulatory Commission (FERC). (See the codeof Federal Regulations, Title 18, Part 292.)

Coincidental Demand: The sum of two or moredemands that occur in the same time interval.

Coincidental Peak Load: The sum of two ormore peak loads that occur in the same timeinterval.

Combined Cycle: An electric generatingtechnology in which electricity is produced fromotherwise lost waste heat exiting from one moregas (combustion) turbines. The exiting heat isrouted to a conventional boiler or to a heatrecovery steam generator for utilization by asteam turbine in the production of electricity. Thisprocess increases the efficiency of the electricgenerating unit.

Combined Cycle Unit: An electric generatingunit that consists of one or more combustionturbines and one or more boilers with a portion ofthe required energy input to the boiler(s) providedby the exhaust gas of the combustion turbine(s).

Combined Pumped-Storage Plant: A pumped-storage hydroelectric power plant that uses bothpumped water and natural strearnflow to produceelectricity.



Commercial: The commercial sector is generallydefined as nonmanufacturing businessestablishments, including hotels, motels,restaurants, wholesale businesses, retail stores,and health, social, and educational institutions.The utility may classify commercial service as allconsumers whose demand or annual use exceedssome specified limit. The limit may be set by theutility based on the rate schedule of the utility.

Commercial Operation: Commercial operationbegins when control of the loading of thegenerator is turned over to the system dispatcher.

Commission: The Federal Energy RegulatoryCommission.

Connection: The physical connection (e.g.transmission lines, transformers, switch gear,etc.) between two electric systems permitting thetransfer of electric energy in one or bothdirections.

Conservation and Other DSIVI: This Demand-Side Management category represents theamount of consumer peak load reduction at thetime of system peak due to utility programs thatreduce consumer load during many hours of theyear. Examples include utility rebate and sharedsavings activities for the installation of energyefficient appliances, lighting and electricalmachinery, and weatherization materials. Inaddition, this category includes all otherDemand-Side Management activities, such asthermal storage, time-of-use rates, fuelsubstitutions, measurement and evaluation, andany other utility-administered Demand-SideManagement activity designed to reduce demandand/or electricity use.

Consumption (Fuel): The amount of fuel usedfor gross generation, providing standby service,start-up and/or flame stabilization.

Contract Price: Price of fuels marketed on acontract basis covering a period of 1 or moreyears. Contract prices reflect market conditionsat the time the contract was negotiated andtherefore remain constant throughout the life ofthe contract or are adjusted through escalationclauses. Generally, contract prices do notfluctuate widely.

Contract Receipts: Purchases based on anegotiated agreement that generally covers aperiod of 1 or more years.

Control Area: An electric power system orcombination of electric power systems to which acommon automatic control scheme is applied inorder to: (1) match, at all times, the power outputof the generators within the electric powersystem(s) and capacity and energy purchasedfrom entities outside the electric power system(s),with the load in the electric power system(s);(2) maintain, within the limits of Good UtilityPractice, scheduled interchange with otherControl Areas; (3) maintain the frequency of theelectric power system(s) within reasonable limitsin accordance with Good Utility Practice; and(4) provide sufficient generating capacity tomaintain operating reserves in accordance withGood Utility Practice.

Cooling System: Energy Efficiency programpromotion aimed at improving the efficiency ofthe cooling delivery system, includingreplacement, in the residential, commercial, orindustrial sectors.

Cooperative Electric Utility: An electric utilitylegally established to be owned by and operatedfor the benefit of those using its service. Theutility company will generate, transmit, and/ordistribute supplies of electric energy to a specifiedarea not being serviced by another utility. Suchventures are generally exempt from Federalincome tax laws. Most electric cooperatives havebeen initially financed by the Rural ElectrificationAdministration, U.S. Department of Agriculture.

Cost: The amount paid to acquire resources,such as plant and equipment, fuel, or laborservices.

Current (Electric): A flow of electrons in anelectrical conductor. The strength or rate ofmovement of the electricity is measured inamperes.

Delivering Party: The entity supplying thecapacity and/or energy to be transmitted atPoint(s) of Receipt.

Demand (Electric): The rate at which electricenergy is delivered to or by a system, part of a



system or piece of equipment, at a given instantor averaged over any designated period of time.

Demand-Side Management: The planning,implementation, and monitoring of utility activitiesdesigned to encourage consumers to modifypatterns of electricity usage, including the timingand level of electricity demand. It refers only toenergy and load-shape modifying activities thatare undertaken in response to utility-administeredprograms. It does not refer to energy andload-shape changes arising from the normaloperation of the marketplace or fromgovernment-mandated energy efficiencystandards. Demand-Side Management (DSM)covers the complete range of load-shapeobjectives, including strategic conservation andload management, as well as strategic loadgrowth.

Demand-Side Management Costs: The costsincurred by the utility to achieve the capacity andenergy savings from the Demand-SideManagement Program. Costs (expenditures)incurred by consumers or third parties are to beexcluded. The costs are to be reported innominal dollars in the year in which they areincurred, regardless of when the savings occur.Program costs include expensed items incurred toimplement the program, incentive paymentsprovided to consumers to install Demand-SideManagement measures, and annual operationand maintenance expenses incurred during theyear. Utility costs that are general,administrative, or not specific to a particularDemand-Side Management category are to beincluded in "other" costs.

Designated Agent: Any entity that performsactions or functions on behalf of the TransmissionProvider, an eligible Customer or theTransmission Customer required under the Tariff.

Direct Load Control: Refers to programactivities that can interrupt consumer load at thetime of annual peak load by direct control of theutility system operator by interrupting powersupply to individual appliances or equipment onconsumer premises. This type of control usuallyinvolves residential consumers. Direct LoadControl excludes Interruptible Load and OtherLoad Management effects. (Direct Load Control,as defined here, is synonymous with Direct LoadControl Management reported to the North

American Electric Reliability Council on thevoluntary Office of Energy Emergency OperationsForm OE-41 1, "Coordinated Regional BulkPower Supply Program Report," with theexception that annual peak load effects arereported here and seasonal (i.e., summer andwinter) peak load effects are reported on theOE-41 1.)

Direct Utility Cost: A utility cost that is identifiedwith one of the DSM program categories (i.e.,Energy Efficiency, Direct Load Control,Interruptible Load, Other Load Management,Other DSM Programs, Load Building).

Distillate Fuel Oil: A general classification forone of the petroleum fractions produced inconventional distillation operations. It is usedprimarily for space heating, on-and-off -highwaydiesel engine fuel (including railroad engine fueland fuel for agriculture machinery), and electricpower generation. Included are Fuel Oils No. 1,No. 2, and No. 4; and Diesel Fuels No. 1, No. 2,and No. 4.

Distribution System: The portion of an electricsystem that is dedicated to delivering electricenergy to an end user.

Diversity Exchange: An exchange of capacityor energy, or both, between systems whose peakloads occur at different times.

Electric Plant (Physical): A facility containingprime movers, electric generators, and auxiliaryequipment for converting mechanical, chemical,and/or fission energy into electric energy.

Electric Rate Schedule: A statement of theelectric rate and the terms and conditionsgoverning its application, including attendantcontract terms and conditions that have beenaccepted by a regulatory body with appropriateoversight authority.

Electric Utility: A corporation, person, agency,authority, or other legal entity or instrumentalitythat owns and/or operates facilities within theUnited States, its territories, or Puerto Rico for thegeneration, transmission, distribution, or sale ofelectric energy primarily for use by the public andfiles forms listed in the Code of FederalRegulations, Title 18, Part 141. Facilities that



qualify as cogenerators or small power producersunder the Public Utility Regulatory Policies Act(PURPA) are not considered electric utilities.

Energy: The capacity for doing work asmeasured by the capability of doing work(potential energy) or the conversion of thiscapability to motion (kinetic energy). Energy hasseveral forms, some of which are easilyconvertible and can be changed to another formuseful for work. Most of the world's convertibleenergy comes from fossil fuels that are burned toproduce heat that is then used as a transfermedium to mechanical or other means in order toaccomplish tasks. Electrical energy is usuallymeasured in kilowatt-hours, while heat energy isusually measured in British thermal units.

Energy Charge: That portion of the charge forelectric service based upon the electric energy(kWh) consumed or billed.

Energy Deliveries: Energy generated by oneelectric utility system and delivered to anothersystem through one or more transmission lines.

Energy Effects: The changes in aggregateelectricity use (measured in megawatthours) forcustomers that participate in a utility DSMprogram. Energy Effects should representchanges at the consumer meter (i.e., excludetransmission and distribution effects) and reflectonly activities that are undertaken specifically inresponse to utility-administered programs,including those activities implemented by thirdparties under contract to the utility. To the extentpossible, Energy Effects should exclude non-program related effects such as changes inenergy usage attributable to nonparticipants,government-mandated energy efficiencystandards that legislate improvements in buildingand appliance energy usage, changes inconsumer behavior that result in greater energyuse after initiation in a DSM program, the naturaloperations of the marketplace, and weather andbusiness cycle adjustments.

Energy Efficiency: Refers to programs that areaimed at reducing the energy used by specificend-use devices and systems, typically withoutaffecting the services provided. These programsreduce overall electricity consumption (reported inmegawatthours), often without explicitconsideration for the timing of program-induced

savings. Such savings are generally achieved bysubstituting technically more advanced equipmentto produce the same level of end-use services(e.g., lighting, heating, motor drive) with lesselectricity. Examples include high-efficiencyappliances, efficient lighting programs, high-efficiency heating, ventilating and air conditioning(HVAC) systems or control modifications, efficientbuilding design, advanced electric motor drives,and heat recovery systems.

Energy Receipts: Energy generated by oneelectric utility system and received by anothersystem through one or more transmission lines.

Energy Source: The primary source thatprovides the power that is converted to electricitythrough chemical, mechanical, or other means.Energy sources include coal, petroleum andpetroleum products, gas, water, uranium, wind,sunlight, geothermal, and other sources.

Equity Capital: The sum of capital from retainedearnings and the issuance of stocks.

Expenditure: The incurrence of a liability toobtain an asset or service.

Facility: An existing or planned location or site atwhich prime movers, electric generators, and/orequipment for converting mechanical, chemical,and/or nuclear energy into electric energy aresituated, or will be situated. A facility may containmore than one generator of either the same ordifferent prime mover type. For a cogenerator,the facility includes the industrial or commercialprocess.

Federal Energy Regulatory Commission(FERC): A quasi-independent regulatory agencywithin the Department of Energy havingjurisdiction over interstate electricity sales,wholesale electric rates, hydroelectric licensing,natural gas pricing, oil pipeline rates, and gaspipeline certification.

Federal Power Act: Enacted in 1920 andamended in 1935, the Act consists of three parts.The first part incorporated the Federal WaterPower Act administered by the former FederalPower Commission, whose activities wereconfined almost entirely to licensing non-Federalhydroelectric projects. Parts 11 and III were



added with the passage of the Public Utility Act.These parts extended the Act's jurisdiction toinclude regulating the interstate transmission ofelectrical energy and rates for its sale aswholesale in interstate commerce. The FederalEnergy Regulatory Commission is now chargedwith the administration of this law.

Federal Power Commission: The predecessoragency of the Federal Energy RegulatoryCommission. The Federal Power Commission(FPC) was created by an Act of Congress underthe Federal Water Power Act on June 10, 1920.It was charged originally with regulating theelectric power and natural gas industries. TheFPC was abolished on September 20,1977, whenthe Department of Energy was created. Thefunctions of the FPC were divided between theDepartment of Energy and the Federal EnergyRegulatory Commission.

FERC: The Federal Energy RegulatoryCommission.

Firm Gas: Gas sold on a continuous andgenerally long-term contract.

Firm Power: Power or power producing capacityintended to be available at all times during theperiod covered by a guaranteed commitment todeliver, even under adverse conditions.

Firm Transmission Service: Point-to-pointtransmission service that is reserved and/orscheduled for a term of one year or more and thatis of the same priority as that of the TransmissionProvider's firm use of the transmission system.Firm Transmission service that is reserved and/orscheduled for a term of less than one year shallbe considered Short-Term Firm TransmissionService for the purposes of service liability.

Fossil Fuel: Any naturally occurring organic fuel,such as petroleum, coal, and natural gas.

Fossil-Fuel Plant: A plant using coal, petroleum,or gas as its source of energy.

Fuel: Any substance that can be burned toproduce heat; also, materials that can befissioned in a chain reaction to produce heat.

Fuel Expenses: These costs include the fuelused in the production of steam or driving anotherprime mover for the generation of electricity.Other associated expenses include unloading theshipped fuel and all handling of the fuel up to thepoint where it enters the first bunker, hopper,bucket, tank, or holder in the boiler housestructure.

Full-Forced Outage: The net capability of maingenerating units that are unavailable for load foremergency reasons.

Gas: A fuel burned under boilers and by internalcombustion engines for electric generation.These include natural, manufactured, and wastegas.

Gas Turbine Plant: A plant in which the primemover is a gas turbine. A gas turbine consiststypically of an axial-flow air compressor, one ormore combustion chambers, where liquid orgaseous fuel is burned and the hot gases arepassed to the turbine and where the hot gasesexpand to drive the generator and are then usedto run the compressor.

Generating Unit: Any combination of physicallyconnected generator(s), reactor(s), boiler(s),combustion turbine(s), or other prime mover(s)operated together to produce electric power.

Generation (Electricity): The process ofproducing electric energy by transforming otherforms of energy; also, the amount of electricenergy produced, expressed in watt-hours (Wh).

Gross Generation: The total amount of electricenergy produced by the generating units at agenerating station or stations, measured at thegenerator terminals.

Net Generation: Gross generation less theelectric energy consumed at the generatingstation for station use.

Generator: A machine that-converts mechanicalenergy into electrical energy.

Geothermal Plant: A plant in which the primemover is a steam turbine. The turbine is driveneither by steam produced from hot water or bynatural steam that derives its energy from heat



found in rocks or fluids at various depths beneaththe surface of the earth. The energy is extractedby drilling and/or pumping.

Gigawatt (GW): One billion watts.

Gigawatthour (GWh): One billion watthours.

Grid: The layout of an electrical distributionsystem.

Heating System: Energy Efficiency programpromotion aimed at improving the efficiency ofthe heating delivery system, includingreplacement, in the residential, commercial, orindustrial sectors.

Heavy Oil: The fuel oils remaining after thelighter oils have been distilled off during therefining process. Except for start-up and flamestabilization, virtually all petroleum used in steamplants is heavy oil.

Hourly Non-Firm Transmission Service: Point-to-point transmission that is scheduled and paidfor on an as-available basis and is subject tointerruption.

Hydroelectric Plant: A plant in which the turbinegenerators are driven by failing water.

Incremental Effects: The annual effects in energyuse (measured in megawatthours) and peak load(measured in kilowatts) caused by newparticipants in existing DSM programs and allparticipants in new DSM programs during a givenyear. Reported Incremental Effects should beannualized to indicate the program effects thatwould have occurred had these participants beeninitiated into the program on January 1 of thegiven year. Incremental effects are not simplythe Annual Effects of a given year minus theAnnual Effects of the prior year, since these neteffects would fail to account for program attrition,degradation, demolition, and participant dropouts.

Indirect Utility Cost: A utility cost that may notbe meaningfully identified with any particularDSM program category. Indirect costs could beattributable to one of several accounting costcategories (i.e., Administrative, Marketing,Monitoring & Evaluation, Utility-EarnedIncentives, Other). Accounting costs that are

known DSM program costs should not be reportedunder Indirect Utility Cost, rather those costsshould be reported as Direct Utility Costs underthe appropriate DSM program category.

Industrial: The industrial sector is generallydefined as manufacturing, construction, mining,agriculture, fishing, and forestry establishments(Standard Industrial Classification [SIC]codes 01-39). The utility may classify industrialservice using the SIC codes, or based on demandor annual usage exceeding some specified limit.The limit may be set by the utility based on therate schedule of the utility.

Intermediate Load (Electric System): Therange from base load to a point between baseload and peak. This point may be the midpoint, apercent of the peakload, or the load over aspecified time period.

Internal Combustion Plant: A plant in which theprime mover is an internal combustion engine.An internal combustion engine has one or morecylinders in which the process of combustiontakes place, converting energy released from therapid burning of a fuel-air mixture into mechanicalenergy. Diesel or gas fired engines are theprincipal types used in electric plants. The plantis usually operated during periods of high demandfor electricity.

Interruptible Gas: Gas sold to customers with aprovision that permits curtailment or cessation ofservice at the discretion of the distributingcompany under certain circumstances, asspecified in the service contract.

Interruptible Load: Refers to program activitiesthat, in accordance with contractualarrangements, can interrupt consumer load attimes of seasonal peak load by direct control ofthe utility system operator or by action of theconsumer at the direct request of the systemoperator. It usually involves commercial andindustrial consumers. In some instances the loadreduction may be affected by direct action of thesystem operator (remote tripping) after notice tothe consumer in accordance with contractualprovisions. For example, loads that can beinterrupted to fulfill planning or operation reserverequirements should be reported as InterruptibleLoad. Interruptible Load as defined hereexcludes Direct Load Control and Other Load



Management. (Interruptible Load, as reportedhere, is synonymous with Interruptible Demandreported to the North American Electric ReliabilityCouncil on the voluntary Office of EnergyEmergency Operations Form OE-4 1,"Coordinated Regional Bulk Power SupplyProgram Report," with the exception that annualpeak load effects are reported on theForm EIA-861 and seasonal (i.e., summer andwinter) peak load effects are reported on theOE-411).

Kilowatt (kW): One thousand watts.

Kilowatt-hour (kWh): One thousand watt-hours.

Leverage Ratio: A measure that indicates thefinancial ability to meet debt service requirementsand increase the value of the investment to thestockholders (i.e., the ratio of total debt to totalassets).

Liability: An amount payable in dollars or byfuture services to be rendered.

Light Oil: Lighter fuel oils distilled off during therefining process. Virtually all petroleum used ininternal combustion and gas turbine engines islight oil.

Load (Electric): The amount of electric powerdelivered or required at any specific point orpoints on a system. The requirement originatesat the energy consuming equipment of theconsumers.

Load Building: Refers to programs that areaimed at increasing the usage of existing electricequipment or the addition of electric equipment.Examples include industrial technologies such asinduction heating and melting, direct arc furnacesand infrared drying; cooking for commercialestablishments; and heat pumps for residences.Load Building should include programs thatpromote electric fuel substitution. Load Buildingeffects should be reported as a negative number,shown with a minus sign.

Load Ratio Share: Ratio of a TransmissionCustomer's Network Load to the TransmissionProvider's total load computed in accordance withSections 11.2 and 11.3 and calculated on a rolling12-month basis.

Mark-To-Market: The method whereby an openposition's current value is calculated based on thelatest market price. The amount calculated is thedifference between the established traded price ofthe transaction and the current market price at aspecific point in time.

Marketing Cost: Expenses directly associatedwith the preparation and implementation of thestrategies designed to encourage participation ina DSM program. The category excludes generalmarket and load research costs.

Maximum Demand: The greatest of all demandsof the load that has occurred within a specifiedperiod of time.

Mcf: One thousand cubic feet.

Megawatt (MW): One million watts.

Megawatthour (MWh): One million watt-hours.

Member System: An Eligible Customeroperating as a part of a lawful combination,partnership, association, or joint action agencycomposed exclusively of Eligible Customers.

MMcf: One million cubic feet.

Monitoring & Evaluation Cost: Expendituresassociated with the planning, collection, andanalysis of data used to assess programoperation and effects. It includes activities suchas load metering, customer surveys, newtechnology testing, and program evaluations thatare intended to establish or improve the ability tomonitor and evaluate the impacts of DSMprograms, collectively or individually.

Native Load Customers: The wholesale andretail customers on whose behalf theTransmission Provider, by statute, franchise,regulatory requirements, or contract, hasundertaken an obligation to construct and operatethe Transmission Provider's system to meet thereliable electric needs of such customers.

Natural Gas: A naturally occurring mixture ofhydrocarbon and nonhydrocarbon gases found inporous geological formations beneath the earth'ssurface, often in association with petroleum. Theprincipal constituent is methane.



Net Capability: The maximum load carryingability of the equipment, exclusive of station use,under specified conditions for a given timeinterval, independent of the characteristics of theload. (Capability is determined by designcharacteristics, physical conditions, adequacy ofprime mover, energy supply, and operatinglimitations as cooling and circulating water supplyand temperature, headwater and tailwaterelevations, and electrical use.)

Net Generation: Gross generation minus plantuse from all electric utility owned plants. Theenergy required for pumping at a pumped storageplant is regarded as plant use and must bededucted from the gross generation.

Net Summer Capability: The steady hourlyoutput, which generating equipment is expectedto supply to system load exclusive of auxiliarypower, as demonstrated by tests at the time ofsummer peak load.

Net Winter Capability: The steady hourly outputwhich generating equipment is expected to supplyto system load exclusive of auxiliary power, asdemonstrated by tests at the time of winter peakload.

Network Customers: Entities receivingtransmission service pursuant to the terms of theTransmission Provider's Network IntegrationTariff.

Network Integration Transmission Service:Network Integration Transmission Service allowsa Transmission Customer to integrate, plan,economically dispatch, and regulate its NetworkResources to serve its Network Load in a mannercomparable to that in which the TransmissionProvider utilizes its Transmission System to serveits Native Load customers. Network IntegrationTransmission Service also may be used by theTransmission Customer to deliver non-firmenergy purchases to its Network Load withoutadditional charge.

Network Load: The designated load of aTransmission Customer, including the entire loadof all Member Systems designated pursuant toSection 6.0. A Transmission Customer's NetworkLoad shall not be reduced to reflect any portion ofsuch load served by the output of any generating

facilities owned, or generation purchased, by theTransmission Customer or its Member Systems.

New Construction: Energy efficiency programpromotion to encourage the building of newhomes, buildings, and plants to exceed standardgovernment-mandated energy efficiency codes; itmay include major renovations of existingfacilities.

Noncoincidental Peak Load: The sum of two ormore peak loads on individual systems that donot occur in the same time interval. Meaningfulonly when considering loads within a limitedperiod of time, such as a day, week, month, aheating or cooling season, and usually for notmore than one year.

Non-Firm Power: Power or power producingcapacity supplied or available under acommitment having limited or no assuredavailability.

Non-Firm Transmission Service: Point-to-pointtransmission service that is reserved and/orscheduled on an as-available basis and is subjectto interruption. Non-firm Transmission Service isavailable on a stand-alone basis as either HourlyNon-firm Transmission Service or Short-TermNon-firm Transmission Service.

Nonutility Power Producer: A corporation,person, agency, authority, or other legal entity orinstrumentality that owns electric generatingcapacity and is not an electric utility. Nonutilitypower producers include qualifying cogenerators,qualifying small power producers, and othernonutility generators (including independentpower producers) without a designated franchisedservice area, and which do not file forms listed inthe Code of Federal Regulations, Title 18,Part 141.

North American Electric Reliability Council(NERC): A council formed in 1968 by the electricutility industry to promote the reliability andadequacy of bulk power supply in the electricutility systems of North America. NERC consistsof ten regional reliability councils andencompasses essentially all the power regions ofthe contiguous United States, Canada, andMexico. The NERC Regions are:



ASCC - Alaskan System Coordination Council

ECAR - East Central Area Reliability CoordinationAgreement

ERCOT - Electric Reliability Council of Texas

MAIN - Mid-America Interconnected Network

MAAC - Mid-Atlantic Area Council

MAPP - Mid-Continent Area Power Pool

NPCC - Northeast Power Coordinating Council

SERC - Southeastern Electric Reliability Council

SPP - Southwest Power Pool

WSCC - Western Systems Coordinating Council

Nuclear Fuel: Fissionable materials that havebeen enriched to such a composition that, whenplaced in a nuclear reactor, will support a self-sustaining fission chain reaction, producing heatin a controlled manner for process use.

Nuclear Power Plant: A facility in which heatproduced in a reactor by the fissioning of nuclearfuel is used to drive a steam turbine.

NYMEX: The New York Mercantile Exchangelocated in New York where petroleum futures andoptions are traded under strict regulations.

Off-Peak Gas: Gas that is to be delivered andtaken on demand when demand is not at its peak.

Other Load Management: Refers to programsother than Direct Load Control and InterruptibleLoad that limit or shift peak load from on-peak tooff-peak time periods. It includes technologiesthat primarily shift all or part of a load from onetime-of-day to another and secondarily may havean impact on energy consumption. Examplesinclude space heating and water heating storagesystems, cool storage systems, and load limitingdevices in energy management systems. Thiscategory also includes programs that aggressivelypromote time-of-use TOU) rates and otherinnovative rates such as real time pricing. Theserates are intended to reduce consumer bills andshift hours of operation of equipment from

on-peak to off-peak periods through theapplication of time differentiated rates.

Outage: The period during which a generatingunit, transmission line, or other facility is out ofservice.

Parties: The Transmission Provider and theTransmission Customer receiving service.

Peak Demand: The maximum load during aspecified period of time.

Peak Load Plant: A plant usually housing old,low-efficiency steam units, gas turbines, diesels,or pumped storage hydroelectric equipmentnormally used during the peak-load periods.

Peaking Capacity: Capacity of generatingequipment normally reserved for operation duringthe hours of highest daily, weekly, or seasonalloads. Some generating equipment may beoperated at certain times as peaking capacity andat other times to serve loads on an around-the-clock basis.

Percent Difference: The relative change in aquantity over a specified time period. It iscalculated as follows: the current value has theprevious value subtracted from it; this newnumber is divided by the absolute value of theprevious value; then this new number is multipliedby 100.

Petroleum: A mixture of hydrocarbons existingin the liquid state found in natural undergroundreservoirs often associated with gas. Petroleumincludes fuel oil No. 2, No. 4, No. 5, No. 6; toppedcrude; kerosene; and jet fuel.

Petroleum (Crude Oil): A naturally occurring,oily, flammable liquid composed principally ofhydrocarbons. Crude oil is occasionally found insprings or pools but usually is drilled from wellsbeneath the earth's surface.

Planned Generator: A proposal by a companyto install electric generating equipment at anexisting or planned facility or site. The proposalis based on the owner having obtained (1) allenvironmental and regulatory approvals, (2) asigned contract for the electric energy, or(3) financial closure for the facility.



Plant: A facility at which are located primemovers, electric generators, and auxiliaryequipment for converting mechanical, chemical,and/or nuclear energy into electric energy. Aplant may contain more than one type of primemover. Electric utility plants exclude facilities thatsatisfy the definition of a qualifying facility underthe Public Utility Regulatory Policies Act of 1978.

Plant Use: The electric energy used in theoperation of a plant. Included in this definition isthe energy required for pumping at pumpedstorage plants.

Plant-Use Electricity: The electric energy usedin the operation of a plant. This energy total issubtracted from the gross energy production ofthe plant; for reporting purposes the plant energyproduction is then reported as a net figure. Theenergy required for pumping at pumped storageplants is, by definition, subtracted, and the energyproduction for these plants is then reported as anet figure.

Point(s) of Delivery: Point(s) of interconnectionon the Transmission Provider's TransmissionSystem where capacity and/or energy transmittedby the Transmission Provider will be madeavailable to the Receiving Party. The Point(s) ofDelivery shall be specified in the ServiceAgreement.

Point-to-Point Transmission Service: Thereservation and/or transmission of energy oneither a firm basis and/or a non-firm basis fromPoint(s) of Receipt to Point(s) of Delivery,including any Ancillary Services that are providedby the Transmission Provider in conjunction withsuch service.

Point-to-Point Transmission Service Tariff:The Transmission Provider's Point-to-PointTransmission Service Tariff as such tariff may beamended and/or superseded from time to time.

Point(s) of Receipt: Point(s) of interconnectionon the Transmission Provider's TransmissionSystem where capacity and/or energy will bemade available to the Transmission Provider bythe Delivering Party. The Point(s) of Deliveryshall be specified in the Service Agreement.

Potential Peak Load Reduction: The amount ofannual peak load reduction capability (measuredin kilowatts) that can be deployed from DirectLoad Control, Interruptible Load, Other LoadManagement, and Other DSM Program activities.It represents the load that can be reduced eitherby the direct control of the utility system operatoror by the consumer in response to a utility requestto curtail load. It reflects the installed loadreduction capability, as opposed to the ActualPeak Reduction achieved by participants, duringthe time of annual system peak load.

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

Power Marketers: Power marketers arebusiness entities engaged in buying and sellingelectricity, but do not own generating ortransmission facilities. Power marketers, asopposed to brokers, take ownership of theelectricity and are involved in interstate trade.These entities file with FERC for status as apower marketer.

Power Pool: An association of two or moreinterconnected electric systems having anagreement to coordinate operations and planningfor improved reliability and efficiencies.

Price: The amount of money or consideration-in-kind for which a service is bought, sold, oroffered for sale.

Prime Mover: The engine, turbine, water wheel,or similar machine that drives an electricgenerator; or, for reporting purposes, a devicethat converts energy to electricity directly (e.g.,photovoltaic solar and fuel cells).

Profit: The income remaining after all businessexpenses are paid.

Public Authority Service to Public Authorities:Public authority service includes electricitysupplied and services rendered to municipalitiesor divisions or agencies of State or Federalgovernments, under special contracts oragreements or service classifications applicableonly to public authorities.



Pumped Storage Hydroelectric Plant: A plantthat usually generates electric energy duringpeak-load periods by using water previouslypumped into an elevated storage reservoir duringoff-peak periods when excess generating capacityis available to do so. When additional generatingcapacity is needed, the water can be releasedfrom the reservoir through a conduit to turbinegenerators located in a power plant at a lowerlevel.

Purchased Power Adjustment: A clause in arate schedule that provides for adjustments to thebill when energy from another electric system isacquired and it varies from a specified unit baseamount.

Pure Pumped Storage Hydroelectric Plant: Aplant that produces power only from water thathas previously been pumped to an upperreservoir.

Qualifying Facility (QF): A cogeneration orsmall power production facility that meets certainownership, operating, and efficiency criteriaestablished by the Federal Energy RegulatoryCommission (FERC) pursuant to the Public UtilityRegulatory Policies Act (PURPA). (See the Codeof Federal Regulations, Title 18, Part 292.)

Rate Base: The value of property upon which autility is permitted to earn a specified rate ofreturn as established by a regulatory authority.The rate base generally represents the value ofproperty used by the utility in providing serviceand may be calculated by any one or acombination of the following accounting methods:fair value, prudent investment, reproduction cost,or original cost. Depending on which method isused, the rate base includes cash, workingcapital, materials and supplies, and deductions foraccumulated provisions for depreciation,contributions in aid of construction, customeradvances for construction, accumulated deferredincome taxes, and accumulated deferredinvestment tax credits.

Ratemaking Authority: A utility commission'slegal authority to fix, modify, approve, ordisapprove rates, as determined by the powersgiven the commission by a State or Federallegislature.

Receipts: Purchases of fuel.

Receiving Party: The entity receiving thecapacity and/or energy transmitted by theTransmission Provider to the Point(s) of Delivery.

Regional Transmission Group: A voluntaryorganization of transmission owners, transmissionusers, and other entities approved by theCommission to efficiently coordinate transmissionplanning (and expansion), operation, and use ona regional (and interregional) basis.

Regulation: The government function ofcontrolling or directing economic entities throughthe process of rulemaking and adjudication.

Reserve Margin (Operating): The amount ofunused available capability of an electric powersystem at peak load for a utility system as apercentage of total capability.

Residential: The residential sector is defined asprivate household establishments which consumeenergy primarily for space heating, water heating,air conditioning, lighting, refrigeration, cooking,and clothes drying. The classification of anindividual consumer's account, where the use isboth residential and commercial, is based onprincipal use.

Retail: Sales covering electrical energy suppliedfor residential, commercial, and industrial end-usepurposes. Other small classes, such asagriculture and street lighting, also are included inthis category.

Revenue: The total amount of money receivedby a firm from sales of its products and/orservices, gains from the sales or exchange ofassets, interest and dividends earned oninvestments, and other increases in the owner'sequity except those arising from capitaladjustments.

Running and Quick-Start Capability: The netcapability of generating units that carry load orhave quick-start capability. In general, quick-startcapability refers to generating units that can beavailable for load within a 30-minute period.

Sales: The amount of kilowatt-hours sold in agiven period of time; usually grouped by classesof service, such as residential, commercial,industrial, and other. Other sales include public



street and highway lighting, other sales to publicauthorities and railways, and interdepartmentalsales.

Sales for Resale: Energy supplied to otherelectric utilities, cooperatives, municipalities, andFederal and State electric agencies for resale toultimate consumers.

Scheduled Outage: The shutdown of agenerating unit, transmission line, or other facility,for inspection or maintenance, in accordance withan advance schedule.

Service Agreement: The initial agreement andany supplements thereto entered into by theTransmission Customer and the TransmissionProvider for service.

Short Ton: A unit of weight equal to2,000 pounds.

Small Power Producer (SPP): Under the PublicUtility Regulatory Policies Act (PURPA), a smallpower production facility (or small powerproducer) generates electricity using waste,renewable (water, wind, and solar), or geothermalenergy as a primary energy source. Fossil fuelscan be used, but renewable resource mustprovide at least 75 percent of the total energyinput. (See Code of Federal Regulations,Title 18, Part 292.)

Spinning Reserve: That reserve generatingcapacity running at a zero load and synchronizedto the electric system.

Spot Purchases: A single shipment of fuel orvolumes of fuel, purchased for delivery within1 year. Spot purchases are often made by a userto fulfill a certain portion of energy requirements,to meet unanticipated energy needs, or to takeadvantage of low fuel prices.

Stability: The property of a system or elementby virtue of which its output will ultimately attain asteady state. The amount of power that can betransferred from one machine to another followinga disturbance. The stability of a power system isits ability to develop restoring forces equal to orgreater than the disturbing forces so as tomaintain a state of equilibrium.

Standby Facility: A facility that supports a utilitysystem and is generally running under no load. Itis available to replace or supplement a facilitynormally in service.

Standby Service: Support service that isavailable, as needed, to supplement a consumer,a utility system, or to another utility if a scheduleor an agreement authorizes the transaction. Theservice is not regularly used.

Steam Electric Plant (Conventional): A plant inwhich the prime mover is a steam turbine. Thesteam used to drive the turbine is produced in aboiler where fossil fuels are burned.

Stocks: A supply of fuel accumulated for futureuse. This includes coal and fuel oil stocks at theplant site, in coal cars, tanks, or barges at theplant site, or at separate storage sites.

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

System (Electric): Physically connectedgeneration, transmission, and distribution facilitiesoperated as an integrated unit under one centralmanagement, or operating supervision.

Total DSM Cost: Refers to the sum of totalutility cost and nonutility cost.

Total DSM Programs: Refers to the total neteffects of all the utility's DSM programs. For thepurpose of this survey, it is the sum of the effectsfor Energy Efficiency, Direct Load Control,Interruptible Load, Other Load Management,Other DSM Programs, and Load Building. Netgrowth in energy or load effects should bereported as a negative number, shown with aminus sign.

Total Nonutility Costs: Refers to total cashexpenditures incurred by consumers and tradeallies that are associated with participation in aDSM program, but that are not reimbursed by theutility. The nonutility expenditures should includeonly those additional costs necessary to purchaseor install an efficient measure relative to a lessefficient one. Costs are to be reported in nominaldollars in the year in which they are incurred,regardless of when the actual effects occur. Tothe extent possible, respondents are asked to



provide the best estimate of non-utility costs ifactual costs are unavailable.

Total Utility Costs: Refers to the sum of thetotal Direct and Indirect Utility Costs for the year.Utility costs should reflect the total cashexpenditures for the year, reported in nominaldollars, that flowed out to support DSM programs.They should be reported in the year they areincurred, regardless of when the actual effectsoccur.

Transformer: An electrical device for changingthe voltage of alternating current.

Transmission: The movement or transfer ofelectric energy over an interconnected group oflines and associated equipment between points ofsupply and points at which it is transformed fordelivery to consumers, or is delivered to otherelectric systems. Transmission is considered toend when the energy is transformed fordistribution to the consumer.

Transmission System (Electric): Aninterconnected group of electric transmission linesand associated equipment for moving ortransferring electric energy in bulk between pointsof supply and points at which it is transformed fordelivery over the distribution system lines toconsumers, or is delivered to other electricsystems.

Turbine: A machine for generating rotarymechanical power from the energy of a stream offluid (such as water, steam, or hot gas). Turbinesconvert the kinetic energy of fluids to mechanicalenergy through the principles of impulse andreaction, or a mixture of the two.

Uniform System of Accounts: Prescribedfinancial rules and regulations established by theFederal Energy Regulatory Commission forutilities subject to its jurisdiction under theauthority granted by the Federal Power Act.

Useful Thermal Output: The thermal energymade available for use in any industrial orcommercial process, or used in any heating orcooling application, i.e., total thermal energymade available for processes and applicationsother than electrical generation.

Utility-Earned Incentives: Costs in the form ofincentives paid to the utility for achievement inconsumer participation in DSM programs. Thesefinancial incentives are intended to influence theutility's consideration of DSM as a resource optionby addressing cost recovery, lost revenue, andprofitability.

Watt: The electrical unit of power. The rate ofenergy transfer equivalent to 1 ampere flowingunder a pressure of 1 volt at unity power factor.

Watt-hour (Wh): An electrical energy unit ofmeasure equal to 1 watt of power supplied to, ortaken from, an electric circuit steadily for 1 hour.

Wheeling Service: The movement of electricityfrom one system to another over transmissionfacilities of intervening systems. Wheeling servicecontracts can be established between two or moresystems facilities of intervening systems.Wheeling service contracts can be establishedbetween two or more systems.

Wholesale Sales: Energy supplied to otherelectric utilities, cooperatives, municipals, andFederal and State electric agencies for resale toultimate consumer.

Voltage Reduction: Any intentional reduction ofsystem voltage by 3 percent or greater forreasons of maintaining the continuity of service ofthe bulk electric power supply system.

Water Heating: Energy Efficiency programpromotion to increase efficiency in water heating,including low-flow showerheads and water heaterinsulation wraps. Could be applicable toresidential, commercial, or industrial consumersectors.

Documents

ENERGY MARKETING GLOSSARY - Powerex Cycle: An electric ... by the exhaust gas of the combustion turbine(s). Combined Pumped-Storage Plant: A pumped-storage …