Frequently Asked Questions

Interchange

Electric power or energy that flows from one entity to another

Load Response

Reducing electricity use from the grid during peak periods to increase reliability and moderate the energy-clearing price during system-wide peak demand; reducing electric load or using qualifying emergency generators on the customer side of the meter.

Operating Reserve

The generating capability (spinning and non-spinning reserve) above firm system demand needed to provide for regulation, load forecasting errors, scheduled and unplanned equipment outages and local area protection

PUC (Public Utilities Commission)

A state agency (often called a department of public utility control, public service commission, etc.) comprised of elected or appointed regulators that oversees utility (including electric, gas, telecom, taxi, weights and measures and the like) rates, services, etc., under applicable FERC or other federal agency guidelines

Universal Service

Electric service sufficient for basic needs that is available to all members of the population regardless of income

Available Transfer Capability (ATC)

The measure of the transfer capability remaining in the physical transmission network for commercial activity beyond already committed uses

Cascading

An uncontrolled successive loss of system elements triggered by an incident at any locale which typically results in widespread service interruptions and cannot be restrained from spreading ("cascading") beyond an area predetermined by appropriate studies

Day-Ahead Market

The trading of multi-hour blocs of electricity for delivery the next day (also called a forward market)

Electric System Losses

Transmission, transformation and distribution losses of electric energy between sources of supply and points of delivery (generally, losses are due to heating of transmission and distribution elements)