Markets

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Aggregator

An aggregator is an entity that combines end-use customers or distributed energy assets into groups for the purpose of participating in wholesal …

Ancillary services

Ancillary services are the services (other than energy) required by system operators to ensure reliable operation of the electric grid.

Associated gas

Some oil wells also produce natural gas along with the oil. The produced gas is called associated-dissolved gas, or, more simply, associated gas …

Avoided cost of electricity

The term ‘avoided cost’ is used to describe the incremental cost to an electric utility to generate or purchase power.

Balancing (natural gas volumes)

Balancing is a technique used throughout the natural gas industry to allow parties to manage day-to-day fluctuations in gas deliveries and/or re …

Basis

Basis is a term used in energy trading to describe the difference between two methods of setting prices.

Bid week

In natural gas wholesale trading markets, bid week is the last five business days immediately preceding the first of each month.

Bilateral electric contract

A bilateral contract is a private trade between two parties. Bilateral transactions usually occur on the phone with two individuals negotiating …

California energy crisis

In the early 2000s, California had a shortage of electricity supply caused by market manipulations and capped retail electricity prices. This ca …

California ISO (CAISO)

The California Independent System Operator (CAISO) is a regional transmission organization that manages the flow of electricity across the high- …

Capacity (contractual)

When market participants contract to use specific facilities, they often contract for rights to use a specific amount of capacity on the facilit …

Capacity (electricity)

Capacity refers to the maximum amount of power available from an electric resource or the maximum capability of an electric device to transmit p …

Capacity (natural gas)

In the natural gas industry, capacity measures the capability of a well, processing plant, pipeline, storage facility, or LNG facility to provid …

Capacity payment

A capacity payment is made by a user of an energy asset to the owner of that asset in return for the rights to utilize the asset’s capacity.

Capacity release

In the U.S., holders of firm natural gas pipeline transportation or storage capacity can resell their capacity rights to other market participan …

Carbon negative

Carbon negative refers to an entity or a process that has a net effect of removing greenhouse gases from the atmosphere.

Carbon offset

A carbon offset is a tradeable instrument that represents a specific amount of reduction in greenhouse gas emissions or an increase in carbon st …

CME Group

CME Group is an American global markets company. It is important because it operates many key energy futures markets in the U.S.

Commodity

A commodity is a product that is mass produced and unspecialized, and as such it is easily interchangeable with a similar product from another s …

Complete retail competition electric market model

Under complete retail competition the utility has been completely removed from the supply function and is simply a transporter of electricity th …