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Business and Regulation

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Administrative and general expenses

Administrative and general expenses are a sub-category of expenses incurred in the normal day-to-day operations of a business. Utility...

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Administrative ratemaking

Administrative ratemaking is an alternative to cost-of-service ratemaking in which a government agency determines rates rather than...

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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...

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Allowance for funds used during construction (AFUDC)

Allowance for funds used during construction, commonly called AFUDC, is a regulatory method of compensating a utility for the financing...

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Amortization

Amortization is the process of reducing or paying off a financial obligation with regular payments. An example is making equal monthly...

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Balance sheet

A balance sheet is a financial snapshot of the value of the assets owned by a company and the liabilities owed by a company at a point in...

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Balancing account

A balancing account is an accounting mechanism used by regulated utilities to keep track of the difference between projected expenses and...

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Basis

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

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Bilateral electric contract

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

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Bundled service

The service that gas and electric end users receive is actually two services: commodity (which is the natural gas or electron flow) as...

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Bypass

Bypass is the act of connecting an end-use customer directly to a gas or electric delivery system other than the customer’s utility...

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CME Group

CME Group is an American global markets company. It is the world's largest financial derivatives exchange, and it trades in asset classes...

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California energy crisis

California implemented electric deregulation on April 1, 1998. In the first years (1998–1999) wholesale electric prices dropped — so much...

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Cap and Trade

Cap and Trade is a regulatory mechanism tied to reducing emissions by power plants or other industries. It is designed for flexibility in...

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Capacity (contractual)

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

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Capacity (natural gas)

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

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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...

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Capacity release

Capacity release (also called capacity brokering) is the act of reselling firm pipeline rights to a new entity. The market where capacity...

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Capital

Monetary capital is the money required to acquire and construct long-term assets (capital assets) necessary to safely and reliably...

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Capital expenditure

A utility capital expenditure refers to money spent to buy or build assets with a life expectancy of longer than one year. Typical...

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