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A renewable portfolio standard, often called an RPS, is a regulatory requirement obligating utilities, generation authorities, or...
A retail marketer is a non-utility entity that sells electric supply, natural gas supply, and other energy services directly to end-use...
Revenue allocation is a step in the ratemaking process where the revenue requirement is divided among specific utility functions and,...
A revenue requirement is the total amount of money a utility must collect from customers to pay all its costs, including its return on...
Risk management refers to techniques used to control and limit an organization’s exposure to financial risks. Risk management is often...
A service territory defines the geographic area where a utility is allowed and required to provide services. Typically, a utility has...
The voltage configuration that is provided by the utility at the customer meter is called the service voltage. In many cases, two...
Return on equity, also known as ROE or the cost of equity capital, describes the return on the equity portion of the rate base that...
Settlement refers to the calculation, billing, and invoicing of charges and payments for market services in electric or natural gas...
An alternative to a full-blown regulatory proceeding is a settlement. A settlement is a negotiated solution presented to the regulatory...
Under the single-buyer electric market model, the utility company creates a supply purchasing group whose job is to competitively procure...
A stranded cost refers to the amount invested in an asset that exceeds the market value of that asset. Stranded costs often arise during...
Supply-side competition refers to competition between providers of a commodity. In natural gas markets it refers to competition between...
Tariffs are public documents, written by regulated entities and approved by the regulatory commission, that detail a utility’s rates,...
A test year is the 12-month period used in a rate case to determine a utility’s cost of service to be included in future rates. There are...
A therm is a measure of the energy content of natural gas and is equal to 100,000 British thermal units (Btu). Many gas utilities bill...
Time-of-use rates change the price of electricity according to the time of day in which it is consumed. A time-of-use rate is structured...
Trading arrangements define how business transactions are performed to allow energy, reserves, and other ancillary services to be...
A transmission system operator (TSO) is a stand-alone natural gas or electric transmission company that owns transmission facilities and...
Transmission companies, or transcos, are independent owners of transmission facilities. They are commonly investor-owned, and like IOUs...
