| Actual Peak Reduction | The actual reduction in annual system peak load (measured in kilowatts) achieved through consumer’s participation in a utility DSM (See Demand Side Management) program. It reflects the changes in the demand for electricity resulting from a utility DSM program that is in effect at the same time the utility experiences its annual system peak load, as opposed to the installed peak load reduction capability (i.e. potential peak reduction). |
| Average Demand | The measure of the total of energy loads placed by customers on a system divided by the time period over which the demands are incurred. |
| Backup Supply Service | Capacity and energy provided to a transmission customer to replace the loss of its generation sources and to cover that portion of demand that exceeds the generation supply. |
| Base Load | The minimum amount of electric power or natural gas delivered or required over a given period of time at a steady rate. The minimum continuous load or demand in a power system over a given period of time usually not temperature sensitive. |
| Blackout | The emergency loss of the source of electricity serving an area caused by failure of the generation, transmission, or distribution system. |
| Brownout | The partial reduction of electrical voltages caused by customer demand being higher than anticipated or by the failure of the generation, transmission, or distribution system. A brownout results in lights dimming and motor-driven devices slowing down. |
| Cogeneration | (1) Any of several processes which either use waste heat produced by electricity generating to satisfy thermal needs or process waste heat to electricity or produce mechanical energy. (2) The use of a single prime fuel source in a reciprocating engine or gas turbine to generate both electrical and thermal energy to optimize fuel efficiency. The dominant demand for energy may be either electrical or thermal. Usually it is thermal with excess electrical energy, if any, being transmitted into the local power supply companies’ lines. |
| Cogenerator | An entity owning a generation facility that produces electricity and another form of useful thermal energy (such as heat or steam), used for industrial, commercial, heating, or cooling purposes. |
| Conservation | Demand-Side Management (DSM) strategy for reducing generation capacity requirements by implementing programs to encourage customers to reduce their load during many hours of the year. Examples include utility rebate and shared savings activities for the installation of energy efficient appliances, lighting and electrical machinery, and weatherization materials. A resource produced by increasing the efficiency of energy use, production, distribution. |
| Demand | The rate at which electric energy or natural gas is delivered to or by a system at a given instant or averaged over a designated period, usually expressed in kilowatts or megawatts (electric); Mcfs or MMBtus (natural gas). |
| Demand-Side Management (DSM) | The term for all activities or programs undertaken by an electric system or its customers to influence the amount and timing of electricity use. Included in DSM are the planning, implementation, and monitoring of utility activities that are designed to influence consumer use of electricity in ways that will produce desired changes in a utility’s load shape, such as, among other things, direct load control, interruptible load and conservation. |
| Deregulation | The elimination of regulation from a previously regulated industry or sector of an industry. |
| Energy | The capability of doing work (potential energy) or the conversion of this capability to motion (kinetic energy). Energy has several forms, some of which are easily convertible and can be changed to another form useful for work. Most of the world’s convertible energy comes from fossil fuels that are burned to produce heat which is then used as a transfer medium to mechanical or other means in order to accomplish tasks. |
| 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. |
| 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. |
| Kilowatt (kW) | A unit of electrical power equal to one thousand watts. |
| Kilowatt-hour (kWh) | A unit of electrical energy which is equivalent to one kilowatt of power used for one hour. One kilowatt-hour is equal to 1,000 watthours. An average household will use between 800 - 1300 kWh per month depending upon geographical area. It is equivalent to 3,412 Btu. |
| Load Shedding | Removal of pre-selected customer demand from a power system, as a result of the occurrence of an abnormal condition, in a effort to maintain the integrity of the system and minimize overall customer outages. |
| Load-Shifting | DSM programs designed to shift load from on -peak times of the day to off-peak times. |
| Megawatt (MW) | A unit of electrical power equal to one million watts or one thousand kilowatts. |
| Megawatt-hour (MWh) | One million watt-hours of electric energy. A unit of electrical energy which equals one megawatt of power used for one hour. |
| Off Peak | The period during a day, week, month or year when the load being delivered by a natural gas or electric system is not at or near the maximum volume delivered by that system for a similar period of time. (night vs. day; Sunday vs. Tuesday) |
| On-Peak Energy | Electricity supplied during a period of high system demands as specified by the supplier. |
| Peak Demand | The maximum load during a specified period of time. |
| Peak Load | The maximum load consumed or produced by a unit or group of units in a stated period of time. |
| Utility | A regulated entity which exhibits the characteristics of a natural monopoly. For the purposes of electric industry restructuring, "utility" refers to the regulated, vertically integrated electric company. "Transmission utility" refers to the regulated owner/operator of the transmission system only. "Distribution utility" refers to the regulated owner/operator of the distribution system which serves retail customers.
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