Glossary of Terms
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Regulatory authorization for a utility to cease provision of a particular service and/or to shut down a particular facility.
- Access Charge
In 1996, the Federal Energy Regulatory Commission (FERC) published rules to establish open access to electric transmission lines as a major step toward electricity deregulation. A provision of those rules established open-access tariffs that would permit companies to recover part of the “stranded” costs represented by investments in their transmission lines and supporting equipment. At the same time, the rules were designed to assure that companies could not exercise an unfair competitive advantage by charging competing generators or resellers exorbitant rates for access to their lines.
The actual commodities or physical cash commodities, as opposed to futures contracts or derivatives. Also called spot commodities or cash commodities. Utilities trade these commodities daily as a way to make sure the right amount of power gets to the right place at the right time.
- Additions to Utility Plant
a. Gross Additions - Expenditures for construction (including Allowance for Funds Used During Construction) and/or utility plant purchased and acquired.
b. Net Additions - Gross additions less retirements and adjustments of utility plant. It is the net change in utility plant between two dates.
- Adequate Regulating Margin
The minimum online capacity of a system that can be adjusted instantly to handle changes in electricity use.
- Administrative Law Judge (ALJ)
The officer designated by the FERC to conduct the proceedings in a rate or other tariff filing.
- Advances for Construction
A deferred credit account representing cash advances paid to the utility by customers requiring the construction of facilities in their behalf. These advances are refundable -- the time or extent of refund is dependent on the contract provisions of the advance (usually dependent on whether or not during a specified period the revenue from the installation warrants the refund). The unrefunded balance, if any, must be transferred to the appropriate plant account. Compare CONTRIBUTIONS IN AID OF CONSTRUCTION.
- Affiliate Transactions
Selling and trading between companies, one of which owns a controlling or influential share of the other(s) or all of which are being controlled by the same parent company.
- Affiliated Marketer
A marketer that is owned either by a distribution or transmission company, or by a corporation that also owns a distribution or transmission company.
- Affiliated Power Marketing Companies
Power marketers that are more than 5 to 10 percent owned by an electric utility or independent power producer.
A legal representative of buyers, sellers or shippers of natural gas in negotiation or operations of contractual agreements.
A program which allows suppliers to group customers together in order to reduce administrative burdens. Being able to purchase and schedule supplies, nominate customer deliveries and manage imbalances for a ‘pool’ of customers eases operational burdens.
- Air-Gas Ratio
The ratio of the air volume to the gas volume. A specified ratio is necessary to achieve a desired character of combustion.
The process of determining ownership rights to the gas delivered to a meter.
- Allocation Method
A method of allocating volumes to affected parties when an imbalance occurs.