• Energy Efficiency

    Using less energy/electricity to perform the same function. Programs designed to use electricity more efficiently - doing the same with less. "Energy conservation" is a term, which has also been used but it has the connotation of doing without in order to save energy rather than using less energy to do the same thing and so is not used as much today. Many people use these terms interchangeably.

  • Energy Emergency

    An energy emergency exists when a system or pool does not have an adequate fuel supply (including water for hydroelectric units) to provide its customers' expected energy requirements over a given period.

  • Energy Imbalance Service

    Corrects hourly imbalances between transmission customer's energy scheduled and actually received.

  • Energy Merchant

    An energy merchant buys and sells energy as a commodity. A merchant plant is one that is built with the aim of marketing and selling its output on the open market. This differs from building a plant to meet customer needs and the obligation to serve that a regulated utility has.

  • Energy Policy Act

    The Energy Policy Act of 1992.

  • Energy Receipts

    Energy generated by one electric utility system and received by another system through one or more transmission lines.

  • Energy Source

    Raw materials that are converted to electricity through chemical, mechanical, or other means. Energy sources include coal, petroleum and petroleum products, gas, water, uranium, wind, sunlight, geothermal, and other sources.

  • Energy Value Chain

    The energy value chain links the sources, production, forms, marketing and delivery of energy. Value can be added by analyzing the energy value chain, learning where competitive advantage can be exploited within a firm's value chain and through interrelationships among the value chains that serve different segments, industries or geographic areas.

  • Enhanced Oil Recovery (EOR)

    The introduction of an artificial drive and displacement mechanism, usually steam, into a reservoir to produce oil unrecoverable by primary and secondary recovery methods.

  • Enriching

    Increasing the heat content of natural gas by mixing it with a gas of higher Btu content (often propane).

  • Enterprise Resource Planning (ERP)

    A collection of software programs that tie together an enterprise's various functions, such as human resources, finance, marketing and sales. The software also enables an analysis of the data to plan production, forecast sales and analyze quality.

  • Entitlement, Working Interest

    A working interest owner's share of production from a well. This amount may not be equal to actual sales due to contractual or market conditions.

  • EPA

    The Environmental Protection Agency. A federal agency charged with protecting the environment.

  • Equity Capital

    The sum of capital from retained earnings and the issuance of stocks.

  • Escalator Clause

    A clause in a purchase or sale contract that permits adjustment of the contract price under specified conditions.

  • ESCO

    Efficiency Service Company. A company that offers to reduce a client's electricity consumption with the cost savings being split with the client.

  • Essential Facilities

    A doctrine developed in anti-trust law which defines certain facilities, found necessary for transporting a product to market, as a potential monopoly and requires such facilities to be made available on a non-discriminatory basis.

  • Ethane (C2H6)

    A hydrocarbon molecule consisting of two carbon atoms and six hydrogen atoms, used as petrochemical feedstock in production of chemicals and plastics, and as a solvent in enhanced oil recovery processes.

  • Ethylene (C2H4)

    A hydrocarbon molecule consisting of two carbon atoms and four hydrogen atoms, used as petrochemical feedstock in production of chemicals and plastics, and as a solvent in enhanced oil recovery processes.

  • Evergreen Clause

    A contract clause that extends the contract beyond the initial term, perhaps on a month-to-month or year-to-year basis, until one of the parties gives a required notice of termination.

  • Exchange

    Transportation of natural gas by displacement over two pipelines, each of which takes and retains possession of gas contractually allocated to the other.

  • Exchange Gas

    Natural gas that is received from, or delivered to, another party in exchange for natural gas delivered to, or received from that other party.

  • Exchange of Futures for Physicals (EFP)

    A futures contract provision by which the physical product is delivered from one market participant to another, with a simultaneous assumption of equal and opposite futures positions between the two participants.

  • Exchange or E-Market

    Online trading community that links buyers and sellers.

  • Exempt Wholesale Generator (EWG)

    A class of generators defined by the Energy Policy Act of 1992 that includes the owners and/or operators of facilities used to generate electricity exclusively for wholesale or that are leased to utilities.

  • Exercise Price

    The price at which an option may be exercised. A decrease in the exercise price has the same effect as an increase in the current price of the underlying asset.

  • Exercising the Option

    The action taken by the owner of a call option if he/she wants to exercise the right to purchase the underlying instrument or to settle in cash, or by the holder of a put option if he/she wants to sell the underlying instrument contract or settle in cash.

  • Exit Fee

    A fee that is paid by a customer leaving the utility system intended to compensate the utility in whole or part for the loss of fixed cost -contribution from the exiting customer.

  • Extraction Loss

    The reduction in volume of wet natural gas due to the removal of natural gas liquids, hydrogen sulfide, carbon dioxide, water vapor and other impurities from the natural gas stream. Also called SHRINKAGE.

  • Extranet

    A network that allows a company to share information with specific businesses and other stakeholders, while excluding others. Extranets, which are more private than external Web sites, transmit information over the Internet and require users to have a password to access data on internal company servers.

  • Face

    Area of a coal bed that exposed from which coal is extracted.

  • Facility

    An existing or planned location or site at which prime movers, electric generators, and/or equipment for converting mechanical, chemical, and/or nuclear energy into electric energy are situated, or will be situated. A facility may contain more than one generator of either the same or different prime mover type. For a cogenerator, the facility includes the industrial or commercial process.

  • Facility Ratings

    The operational limits of an electric system facility or element under a set of specified conditions. (See Normal Rating and Emergency Rating for more information.)

  • Farm-Out

    An interest in an oil or gas lease which is granted to a third party by the lease holder.

  • FASB

    Financial Accounting Standards Board.

  • FASB71

    An exception to generally accepted accounting rules. In a regulated industry, if an asset that has been created by regulators and its associated costs have been established as recoverable from the ratepayers in the future, a company may record the asset on its books.

  • Fault

    A short circuit can be either between two conductors (phase to phase) or between a conductor and a grounded surface (phase to ground).

  • Federal Energy Regulatory Commission (FERC)

    A quasi-independent regulatory agency within the Department of Energy having jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas transmission and related services pricing, oil pipeline rates, and gas pipeline certification. With respect to the natural gas industry, the general regulatory principles of the FERC are defined in the Natural Gas Act (NGA) , the Natural Gas Policy Act (NGPA), and the Natural Gas Wellhead Decontrol Act.

  • Federal Power Act

    Enacted in 1920, and amended in 1935, the Act consists of three parts. The first part incorporated the Federal Water Power Act administered by the former Federal Power Commission, whose activities were confined almost entirely to licensing non-Federal hydroelectric projects. Parts II and III were added with the passage of the Public Utility Regulatory Policies Act. These parts extended the Act's jurisdiction to include regulating the interstate transmission of electrical energy and rates for its sale as wholesale in interstate commerce. The Federal Energy Regulatory Commission is now charged with the administration of this law.

  • Federal Power Commission (FPC)

    The predecessor agency to the Federal Energy Regulatory Commission, which was created by an Act of Congress under the Federal Water Power Act on June 10, 1920. It was charged originally with regulating the electric power and natural gas industries. The FPC was abolished on September 20, 1977, when the Department of Energy was created. The functions of the FPC were divided between the Department of Energy and the Federal Energy Regulatory Commission.

  • Feedstock

    Natural gas used as an essential -component of a process for the production of a product (e.g., fertilizer, glass and white brick). Natural gas may be required as a feedstock due to the chemical reaction involved, or because of the physical burning characteristics of natural gas compared with other fuels, such as temperature and by-products.

  • FERC

    The Federal Energy Regulatory Commission.

  • FERC Gas Tariff

    A published statement filed by an interstate pipeline with the FERC that describes the rates, terms and conditions under which service will be provided. See also TARIFF.

  • FERC-Out

    A clause in a contract which allows the pipeline to adjust the rates and terms to reflect regulatory action.

  • Field

    A district or area from which natural gas is produced.

  • Filed Rate Doctrine

    The Doctrine under the Natural Gas Act which requires rates to be on file with the Commission and which prevents increased rates from being imposed retroactively.

  • Financial Assets

    Financial Assets are the record or the claim that facilitates an exchange of funds and a shift of risk.

  • Financial Market

    A financial market is the place or mechanism whereby financial assets are exchanged and prices of these assets are set.

  • Firm Customer

    A customer for whom contract demand is reserved and to whom the supplier is obligated to provide service.

  • Firm Demand

    The capacity that a supplier is required by contract to provide (except during extreme emergencies).

  • Firm Energy

    Energy sales which, although not subject to interruption for economic purposes, may be interrupted under force majeure conditions.

  • Firm Energy Load Carrying Capability (FELCC)

    The amount of firm energy that can be produced from a hydroelectric power system based on that system's lowest recorded sequence of streamflows and the maximum amount of reservoir storage currently available to the system.

  • Firm Gas

    Gas sold on a continuous basis for a defined contract term (e.g., one year).

  • Firm Power

    Electric 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, but subject to force majeure interruptions. Firm power consists of either firm energy, firm capacity, or both.

  • Firm Recallable Capacity

    Firm capacity which is released subject to the releasing shipper's right to recall, in accordance with specified criteria, such as cold weather, force majeure, loss of market, loss of gas, etc.

  • Firm Service

    Service offered to customers under schedules or contracts that anticipate no interruptions, regardless of class of service, except for force majeure.

  • First Contingency Criteria

    A criteria for system operation that states that the system should be able to survive the loss of any single element (generator, line, transformer, switch, etc.) without any critical loss of function, overload or alarm condition.

  • First Sale

    A term adopted under the NGPA to describe certain sales of natural gas; Le., any sale of any volume of natural gas (i) to any interstate pipeline or intrastate pipeline; (ii) to any local distribution company; (iii) to any person for use by such person; (iv) which precedes any sale described in clauses (i), (ii), or (iii); and (v) any sale which precedes or follows any sale described in clauses (i), (ii), (iii), or (iv) and is defined by the FERC as a first sale in order to prevent circumvention of any maximum lawful price established under the NGPA. The NGPA excludes from the term "first sale" the sale of any volume of natural gas by any interstate or intrastate pipeline, local distribution company, or any affiliate thereof, unless such sale is attributable to volumes of natural gas produced by such affiliates thereof.

  • Fixed Charge

    The charge calculated in rate design to recover all or a portion of the fixed costs of a utility plant, including the generation facility and transmission lines, meters, and some taxes.

  • Fixed Cost

    Cost associated with capital investment such as equipment, overhead, property taxes; any cost included in the cost of service that does not tend to fluctuate with the amount of energy produced

  • Fixed Operating Cost

    Cost, other than that associated with capital investment, that does not vary with the operation, such as base maintenance and labor.

  • Fixed Price

    A contract in which a named, exact price is specified for commodities. A fixed price contract usually has variations to the fixed price such as escalators or redeterminations for increased costs or incentives for meeting various goals.

  • Fixed Price Tariff

    A standard energy charge that remains fixed for a specified period of time except for adjustments to reflect changes in fuel costs,

  • Flaring

    The act, illegal in the United States, of burning gas that could not be sold at the field site.

  • Flex Rates

    Monthly price adjustments in pipeline rates, within a minimum and maximum cap.

  • Floor

    A rate option strategy that allows its holder to set a floor or minimum interest rate for his floating rate deposits over a period of time. A floor is analogous to a series of put options on interest rates protecting the buyer from interest rates falling below a specific level.

  • Floor Broker

    In the context of futures trading, an exchange member who executes trades on the floor of a commodities exchange.

  • Floor Trader or Local

    An exchange member who executes trades for his own account.

  • Flow

    The volume of water passing a given point per unit of time.

  • Flue Gas Desulfurization Unit (Scrubber)

    Equipment used to remove sulfur oxides from the combustion gases of a boiler plant before discharge to the atmosphere. Chemicals, such as lime, are used as the scrubbing media.

  • Flue Gas Particulate Collectors

    Equipment used to remove fly ash from the combustion gases of a boiler plant before discharge to the atmosphere. Particulate collectors include electrostatic precipitators, mechanical collectors (cyclones), fabric filters (baghouses), and wet scrubbers.

  • Fluidized-Bed Combustion

    Process which removes sulfur from coal combustion, while limiting the formation of nitrogen oxides.

  • Fly Ash

    Finely divided particles of ash entrained in gases resulting from the combustion of fuel. Approx. 6 million tons of fly ash is used each year in the U.S. in major concrete projects, such as highway construction.

  • Force Majeure

    A common law concept borrowed from the French civil law. "Force majeure" means superior or irresistible force that excuses a failure to perform. It has been defined by the United States Supreme Court as a cause that is "beyond the control and without the fault or negligence" of the party excused. Force majeure events also must not have been reasonably foreseeable; e.g., a blizzard in Houston in January may be a force majeure event, but a blizzard in Montana will not qualify.

  • Forced Derating

    An unplanned component failure (immediate, delayed, postponed) or other condition that requires the load on the unit be reduced immediately or before the next weekend.

  • Forced Outage

    An unplanned component failure (immediate, delayed, postponed, startup failure) or other condition that requires the unit be removed from service immediately or before the next weekend.

  • Forced Outage Rate

    The rate of shutdown of a generating unit, transmission line, or other facility, for emergency reasons or a condition in which the generating equipment is unavailable for load because of unanticipated breakdown.

  • Forced Outage Reserves

    An amount of peak generating capability planned to be available to serve peak loads during forced outages.

  • Forecast

    Prediction of demand for electricity.

  • Forecast Uncertainty

    Probable deviations from the expected forecast.

  • Forecasting

    The process of estimating or calculating electricity load or resource production requirements at some point in the future.

  • Forward Buying

    Providing commodities (such as power) for future needs assuring that it will be on hand when needed and that there will be no disruption of service.

  • Forward Contract

    A commitment to buy (long) or sell (short) an underlying asset at a specified date at a price (known as the exercise or forward price) specified at the origination of the contract.

  • Forward Curve

    A Forward Curve is the sequence of future yields corresponding to the floating reference rates on a swap.

  • Forward Price

    Forward Price is the future yield of an instrument that will determine the Forward Curve.

  • Forward Rate Agreement (FRA)

    A transaction in which two counterparties agree to a single exchange of cash flows based on a fixed and a floating rate respectively. A Forward Rate Agreement can be viewed as a one-date interest rate swap.

  • Forward Rate (interest)

    Arrangement for a loan to begin at some point in the future with a promise today to receive a specific interest rate or interest rates prevailing today for future loans. The term structure of interest rates is the relation between the current long-term and short-term interest rates, but underlying this is a relationship between the current long-term rate and the rates on current and future short-term loans.

  • Forward Swap

    Swaps that begin more than one year in the future. The terms are fixed before the start date. Also known as a deferred-start swap.

  • Forwards

    A commodity bought and sold for delivery at some specific time in the future. It is differentiated from futures markets by the fact that a forward contract is customized, non exchange traded, and a non regulated hedging mechanism.

  • Fossil Fuel

    Fuel such as coal, crude oil or natural gas, formed from the fossil remains of organic material.

  • Fossil-Fuel Plant

    A plant using coal, liquid fuel (e.g., oil), or natural gas as its source of energy.

  • FPA

    Federal Power Act.

  • FPC

    Federal Power Commission.

  • Fractionation

    The process of separating liquid hydrocarbons from natural gas into propane, butane, ethane, etc.

  • Franchise

    A special privilege conferred by a government on an individual or corporation to occupy and use the public ways and streets for benefit to the public at large. Local distribution companies typically have exclusive franchises for utility service granted by state or local governments.

  • Free on Board (FOB)

    An arrangement in which the seller provides a product at an agreed upon unit price. This arrangement will occur at a specified loading port within a specified period, with the buyer having responsibility to arrange for transportation and insurance.

  • Frequency

    The oscillatory rate in Hertz (cycles per second) of the alternating current electric service. Nominally 60 Hz (no lower than 59.5 or higher than 60.5) in the United States and 50 Hz in Europe.

  • Frequency Bias

    A value, associated with a control area, that relates the difference between scheduled and actual frequency to the amount of generation required to correct the difference.

  • Frequency Bias Setting

    A value, in MW/O. 1 Hz, set into a control area's automatic generating control equipment to represent a control area's response to deviation from scheduled frequency.

  • Frequency Deviation

    Frequency changes in the system.