The charge for operations and maintenance of a utility's transmission and distribution systems

The rate of electricity usage (measured in kilowatt- or megawatt-hours) by a customer

Energy efficiency or load management programs that help customers manage their use (demand) of electricity, and that avoid the necessity to build new generation

A specialized security or contract whose value is based on an underlying security or factor such as a price index, and that may include options, futures, forwards, etc.

Using small amounts of generation on a utility's distribution system to meet local (substation level) peak loads and/or to displace the need to build new or upgrade existing local distribution lines; newer technologies include fuel cells, wind power, solar cells, reciprocating engines and microturbines (also called distributed power); problems include lack of standardized interconnection requirements, permitting, siting and safety hazards for interconnection of large numbers of small generating units

Buying power from the wholesale electricity market instead of from a supplier or local distribution company

The flow of electricity that is controllable as to direction and amount, and does not oscillate in voltage or current

An electric distribution company (sometimes called an EDU, electric distribution utility, or UDC, utility distribution company)

Moving electric power on low-voltage transmission lines from the bulk-power transmission grid

Generally, the low-voltage lines and transformers that transmit electricity from the large, bulk-power system to retail customers

An electric generation company

Conversion of nuclear, thermal, etc. energy into electricity

The interconnected power lines and generators that supply, transmit and distribute electric power to the customers connected to it

An independent company that operates an electric grid

A financial instrument that establishes the future prices and quantities of electricity independently of the short-term market, e.g., contracts for differences, forwards, futures, and option contracts

The market in which blocs of energy are traded on an hourly basis

A transmission network location where the price of electricity is used by traders as a reference price for spot transactions and for contracting

The portion of a generator's load that is in addition to its existing load

Electric power or energy that flows from one entity to another

A system consisting of two or more individual electric systems that operates synchroniously and have connecting tielines

Local distribution company

Pricing electricity to include the costs of transmission losses, congestion and the local costs of generation (also called location-based pricing)

Any consumer of electrical energy; also, the amount of power (demand) used by a utility system, electrical device or consumer. Load can be manually or automatically curtailed or shed temporarily during times of high usage (customers have agreed beforehand to such actions) or managed to ensure a reliable electricity supply

An area (city, etc.) that uses large amounts of electricity (also called a load pocket)

Planning by utilities to ensure that electric generators operate as scheduled, based upon load forecasts (also, operating a generator to balance short-term load fluctuations)

Planning by utilities to ensure a reliable electricity supply

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.

A transmission or distribution utility that has contractual or regulatory obligations to connect its load to the transmission grid

The difference between net capacity (a system's total capacity resources) and net internal demand, that is generally expressed in MW for operating reserves and as a percentage of either system load or installed generating capacity for planning reserves

The cost of providing additional electricity; "The competitive price of a MWh of electricity is equal to the additional amount it would cost to generate an additional MWh, once all current demand is met. This additional cost is commonly referred to as the marginal cost. The marginal cost of generating electricity rises as more electricity is produced, because different generators use different types and amounts of fuel_.under competition, the rising marginal cost of electricity leads to high prices when demand is high and low prices during low-demand periods." (GAO-02-828 Restructured... Read more about Marginal Cost

Under PURPA, a non-utility generator of electric power that has received a certificate from FERC, enabling it to sell electricity only at wholesale avoided cost to a utility

Accumulated capital cost of a utility's purchased or installed facilities that serve customers

in economics, finding reduced economies of scale and applying them across all alternatives

Pricing electricity based on the actual cost at the time it is demanded by a customer

A for-profit or non-profit entity that coordinates transmission planning, operations and use on a regional and inter-regional basis and that is subject to FERC approval

An intangible (deferred debt cost, accelerated depreciation, etc.) that appears on a regulated utility's balance sheet and that can be recovered from ratepayers under regulation

The measure of performance of a bulk-power system that results in electricity being delivered to consumers within accepted standards and in the amount desired; measured by frequency, duration and magnitude of adverse impacts on the electric supply (also called system reliability). Reliability comprises both generation adequacy and system security.

Allowing a customer to buy electricity from a supplier of choice and transmit (wheel) it on the grid

An alternative regulation plan that caps a utility's allowed revenues with an external index

An agreed-upon transaction size (measured in MW), start and end times, start and end ramp times and rates required for delivery and receipt of power and energy between contracting parties and the control areas involved in the transaction

The unit of measure of the power that maintains the constant variation of the electro-magnetic fields associated with alternating-current circuits

A utility that owns and controls generation, transmission and distribution components

The force that makes electricity flow; the unit of measure of electric potential

A fee for using the transmission or distribution system that is based on the volume of electricity that is transmitted

The bulk power market

Buying transmission services from a utility to transport (wheel) electricity to another utility, non-utility generator or a wholesale customer

Charging electric suppliers or their customers for the use of transmission or distribution wires