Operating a system so that the single, most severe contingency is sustained without causing instabilities, voltage collapse or overloads

A specific contiguous electrical path from a point of receipt to a point of delivery for which transfer rights have been contracted

An electric system or systems bounded by interconnection metering and telemetry that controls generation to maintain its interchange schedule with other areas and the frequency regulation of its interconnection

A rural electric cooperative that generates or buys wholesale electricity to distribute to its customers in a service territory that may cover a wide geographical area; a cooperative is owned and operated by its members and may offer additional services

Establishing the rates a utility charges its commercial, industrial and residential customers (customer classes) based on the reasonable and necessary costs of investment and servicing; in short, linking a utility's costs to its rate of return through regulation

Congestion Revenue Right. See "Financial Transmission Right"

A reduction in scheduled capacity or energy delivery

The ability of a customer to purchase power from a supplier at a rate agreed upon by both that is delivered to the customer's location (also called customer choice or retail competition)

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

Ensuring that electric service is not interrupted for customers who temporarily lack an electricity provider or who switch from one supplier to another

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