Glossary of Energy Terms
Adjustable speed drives: Drives that save energy by ensuring the motor's speed is properly matched to the load placed on the motor.
Ancillary Services: The electric industry’s services and products, and/or as otherwise required by ISO rules, required to supplement wholesale Energy transactions in preparing for and facilitating delivery of Electricity to the Delivery Point as a full, firm requirements product meeting the load requirements of the Participant.
Base load: The minimum amount of electric power delivered or required over a given period of time at a steady rate.
British thermal unit: The quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit at the temperature at which water has its greatest density (approximately 39 degrees Fahrenheit).
Btu: The abbreviation for British thermal unit(s).
Cogeneration: The production of electrical energy and another form of useful energy (such as heat or steam) through the sequential use of energy.
Combined heat and power (CHP) plant: A plant designed to produce both heat and electricity from a single heat source. Note: This term is being used in place of the term "cogenerator" that was used by EIA in the past. CHP better describes the facilities because some of the plants included do not produce heat and power in a sequential fashion and, as a result, do not meet the legal definition of cogeneration specified in the Public Utility Regulatory Policies Act (PURPA).
Congestion: A condition that occurs when insufficient transfer capacity is available to implement all of the preferred schedules for electricity transmission simultaneously.
Day-ahead and hour-ahead markets: Forward markets where electricity quantities and market clearing prices are calculated individually for each hour of the day on the basis of participant bids for energy sales and purchases.
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.
Decatherm: Ten therms or 1,000,000 Btu.
Demand interval: The time period during which flow of electricity is measured (usually in 15-, 30-, or 60-minute increments.)
Demand-metered: Having a meter to measure peak demand (in addition to total consumption) during a billing period. Demand is not usually metered for other energy sources.
Demand-side management (DSM): The planning, implementation, and monitoring of utility activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. It refers to only energy and load-shape modifying activities that are undertaken in response to utility-administered programs. It does not refer to energy and load-shaped changes arising from the normal operation of the marketplace or from government-mandated energy-efficiency standards. Demand-Side Management covers the complete range of load-shape objectives, including strategic conservation and load management, as well as strategic load growth.
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.
Gate station: Location where the pressure of natural gas being transferred from the transmission system to the distribution system is lowered for transport through small diameter, low pressure pipelines.
Greenhouse gases: Those gases, such as water vapor, carbon dioxide, nitrous oxide, methane, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride, that are transparent to solar (short-wave) radiation but opaque to long-wave (infrared) radiation, thus preventing long-wave radiant energy from leaving Earth's atmosphere. The net effect is a trapping of absorbed radiation and a tendency to warm the planet's surface.
Heating degree-days (HDD): A measure of how cold a location is over a period of time relative to a base temperature, most commonly specified as 65 degrees Fahrenheit. The measure is computed for each day by subtracting the average of the day's high and low temperatures from the base temperature (65 degrees), with negative values set equal to zero. Each day's heating degree-days are summed to create a heating degree-day measure for a specified reference period. Heating degree-days are used in energy analysis as an indicator of space heating energy requirements or use.
Henry Hub: A pipeline interchange, located in Vermilion Parish, Louisiana, which serves as the delivery point of natural gas futures contracts.
Interstate pipeline: Any person engaged in natural gas transportation subject to the jurisdiction of Federal Energy Regulatory Commission (FERC) under the Natural Gas Act.
ISO: The Independent System Operator-New England.
Kilowatt (kW): One thousand watts.
Kilowatt-electric (kWe): One thousand watts of electric capacity.
Kilowatthour (kWh): A measure of electricity defined as a unit of work or energy, measured as 1 kilowatt (1,000 watts) of power expended for 1 hour. One kWh is equivalent to 3,412 Btu.
Liquefied natural gas (LNG): Natural gas (primarily methane) that has been liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure.
Liquefied petroleum gases: A group of hydrocarbon-based gases derived from crude oil refining or natural gas fractionation. They include ethane, ethylene, propane, propylene, normal butane, butylene, isobutane, and isobutylene. For convenience of transportation, these gases are liquefied through pressurization.
Load (electric): An end-use device or customer that receives power from the electric system. (NERC definition)
Load-Serving Entity (electric): Secures energy and transmission service (and related Interconnected Operations Services) to serve the electrical demand and energy requirements of its end-use customers. (NERC definition)
Load shape: A method of describing peak load demand and the relationship of power supplied to the time of occurrence.
Local distribution company (LDC): A legal entity engaged primarily in the retail sale and/or delivery of natural gas through a distribution system that includes mainlines (that is, pipelines designed to carry large volumes of gas, usually located under roads or other major right-of-ways) and laterals (that is, pipelines of smaller diameter that connect the end user to the mainline). Since the restructuring of the gas industry, the sale of gas and/or delivery arrangements may be handled by other agents, such as producers, brokers, and marketers that are referred to as "non-LDC."
Locational Marginal Price ("LMP"): The hourly integrated market clearing marginal price for Energy in a Load Zone as defined by the ISO.
Low E glass: Low-emission glass reflects up to 90% of long-wave radiation, which is heat, but lets in short-wave radiation, which is light. Windows are glazed with a coating that bonds a microscopic, transparent, metallic substance to the inside surface of the double-pane or triple-pane windows.
Lumen: An empirical measure of the quantity of light. It is based upon the spectral sensitivity of the photosensors in the human eye under high (daytime) light levels. Photometrically it is the luminous flux emitted with a solid angle (1 steradian) by a point source having a uniform luminous intensity of 1 candela.
Lumens/Watt (lpw): A measure of the efficacy (efficiency) of lamps. It indicates the amount of light (lumens) emitted by the lamp for each unit of electrical power (Watts) used.
Megawatt (MW): One million watts of electricity.
Megawatt electric (MWe): One million watts of electric capacity.
Megawatthour (MWh): One thousand kilowatt-hours or 1 million watt-hours.
Methane: A colorless, flammable, odorless hydrocarbon gas (CH4) which is the major component of natural gas. It is also an important source of hydrogen in various industrial processes. Methane is a greenhouse gas. See also Greenhouse gases.
MMBtu: One million British thermal units.
MMcf: One million cubic feet.
Mercaptan: An organic chemical compound that has a sulfur like odor that is added to natural gas before distribution to the consumer, to give it a distinct, unpleasant odor (smells like rotten eggs). This serves as a safety device by allowing it to be detected in the atmosphere, in cases where leaks occur.
Metered data: End-use data obtained through the direct measurement of the total energy consumed for specific uses within the individual household. Individual appliances can be submetered by connecting the recording meters directly to individual appliances.
Metered peak demand: The presence of a device to measure the maximum rate of electricity consumption per unit of time. This device allows electric utility companies to bill their customers for maximum consumption, as well as for total consumption.
Natural gas: A gaseous mixture of hydrocarbon compounds, the primary one being methane. Note: The Energy Information Administration measures wet natural gas and its two sources of production, associated/dissolved natural gas and nonassociated natural gas, and dry natural gas, which is produced from wet natural gas.
Natural gas marketer: A company that arranges purchases and sales of natural gas. Unlike pipeline companies or local distribution companies, a marketer does not own physical assets commonly used in the supply of natural gas, such as pipelines or storage fields. A marketer may be an affiliate of another company, such as a local distribution company, natural gas pipeline, or producer, but it operates independently of other segments of the company. In States with residential choice programs, marketers serve as alternative suppliers to residential users of natural gas, which is delivered by a local distribution company.
Natural gas utility demand-side management (DSM) program sponsor: A DSM (demand-side management) program sponsored by a natural gas utility that suggests ways to increase the energy efficiency of buildings, to reduce energy costs, to change the usage patterns, or to promote the use of a different energy source.
Off-Peak: The Monday through Sunday hours ending ("HE") 0100 through HE 0700 and HE 2400 and Saturday through Sunday HE 0800 through HE 2300. Off Peak also includes NERC Holidays HE 0100 through HE 2400. HE shall be at Eastern prevailing time.
On-Peak: The Monday through Friday HE 0800 through HE 2300, excluding NERC Holidays. HE shall be at Eastern prevailing time.
Open access (electric): Federal Energy Regulatory Commission Order No. 888 requires public utilities to provide non-discriminatory transmission service over their transmission facilities to third parties to move bulk power from one point to another on a nondiscriminatory basis for a cost-based fee. Order 890 expanded Open Access to cover the methodology for calculating available transmission transfer capability; improvements that opened a coordinated transmission planning processes; standardization of energy and generation imbalance charges; and other reforms regarding the designation and undesignation of transmission network resources. (NERC definition)
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.
Photovoltaic cell (PVC): An electronic device consisting of layers of semiconductor materials fabricated to form a junction (adjacent layers of materials with different electronic characteristics) and electrical contacts and being capable of converting incident light directly into electricity (direct current).
Purchased power adjustment: A clause in a rate schedule that provides for adjustments to the bill when energy from another electric system is acquired and its cost varies from a specified unit base amount.
PURPA: The Public Utility Regulatory Policies Act of 1978, passed by the U.S. Congress. This statute requires States to implement utility conservation programs and create special markets for co-generators and small producers who meet certain standards, including the requirement that States set the prices and quantities of power the utilities must buy from such facilities.
Qualifying facility (QF): A cogeneration or small power production facility that meets certain ownership, operating, and efficiency criteria established by the Federal Energy Regulatory Commission (FERC) pursuant to the Public Utility Regulatory Policies Act (PURPA).
Rate case: A proceeding, usually before a regulatory commission, involving the rates to be charged for a public utility service.
Renewable energy resources: Energy resources that are naturally replenishing but flow-limited. They are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. Renewable energy resources include: biomass, hydro, geothermal, solar, wind, ocean thermal, wave action, and tidal action.
Renewable fuels (other): Fuels and fuel blending components, except biomass-based diesel fuel, renewable diesel fuel, and fuel ethanol, produced from renewable biomass. Note: This category “other” pertains to the petroleum supply data system.
Reserve generating capacity: Amount of generating capacity available to meet peak or abnormally high demands for power and to generate power during scheduled or unscheduled outages.
Self-Generator: A plant whose primary product is not electric power, but does generate electricity for its own use or for sale on the grid; for example, industrial combined heat and power plants.
Therm: One hundred thousand (100,000) Btu.
Unaccounted for (natural gas): Represents differences between the sum of the components of natural gas supply and the sum of components of natural gas disposition. These differences may be due to quantities lost or to the effects of data reporting problems. Reporting problems include differences due to the net result of conversions of flow data metered at varying temperatures and pressure bases and converted to a standard temperature and pressure base; the effect of variations in company accounting and billing practices; differences between billing cycle and calendar-period time frames; and imbalances resulting from the merger of data reporting systems that vary in scope, format, definitions, and type of respondents.
Watt (W): The unit of electrical power equal to one ampere under a pressure of one volt. A Watt is equal to 1/746 horsepower.
Watthour (Wh): The electrical energy unit of measure equal to one watt of power supplied to, or taken from, an electric circuit steadily for one hour.
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.
