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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 are the services (other than energy) required by system operators to ensure reliable operation of the electric grid.
Some oil wells also produce natural gas along with the oil. The produced gas is called associated-dissolved gas, or, more simply, associated gas …
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 is a term used in energy trading to describe the difference between two methods of setting prices.
In natural gas wholesale trading markets, bid week is the last five business days immediately preceding the first of each month.
A bilateral contract is a private trade between two parties. Bilateral transactions usually occur on the phone with two individuals negotiating …
In the early 2000s, California had a shortage of electricity supply caused by market manipulations and capped retail electricity prices. This ca …
The California Independent System Operator (CAISO) is a regional transmission organization that manages the flow of electricity across the high- …
When market participants contract to use specific facilities, they often contract for rights to use a specific amount of capacity on the facilit …
Capacity refers to the maximum amount of power available from an electric resource or the maximum capability of an electric device to transmit p …
In the natural gas industry, capacity measures the capability of a well, processing plant, pipeline, storage facility, or LNG facility to provid …
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.
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 refers to an entity or a process that has a net effect of removing greenhouse gases from the atmosphere.
A carbon offset is a tradeable instrument that represents a specific amount of reduction in greenhouse gas emissions or an increase in carbon st …
A clean energy standard, or CES, is a regulatory requirement obligating utilities, generation authorities, or load-serving entities to acquire a …
CME Group is an American global markets company. It is important because it operates many key energy futures markets in the U.S.
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 …