Cigre Glossary of Terms Used in The Electricity Supply Industry

198
CIGRE
GLOSSARY OF TERMS
USED IN
THE ELECTRICITY SUPPLY INDUSTRY
Study Committees
37, 38 and 39
February 2002
CIGRE
GLOSSARY OF TERMS
USED IN
THE ELECTRICITY SUPPLY INDUSTRY
STUDY COMMITTEES
37, 38 AND 39
Copyright © 2005
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Disclaimer notice
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CONTENTS
Section 1 Electrical Quantities
Section 2 Electricity Systems
Section 3 System Operations
Section 4 Electricity Market
Section 5 Entities in the Electricity Market
ANNEXES
Section 1 Electrical Quantities
Section 2 Electricity Systems
Section 3 System Operations
Section 4 Electricity Market
Section 5 Entities in the Electricity Market
Section 6 Electrical Plant – Primary
Section 7 Electrical Plant – Secondary
Section 8 Electrical Plant – General
References
• North American Electric Reliability Council (NERC)—Glossary of Terms, August 1996

• Electricity Trust of South Australia (NECA)
• Institute of Electrical and Electronics Engineers (IEEE) Reprinted with permission from
IEEE. Catalog Number 96 TP 110-0 “Glossary of Terms and Definitions Concerning
Electric Power Transmission System Access and Wheeling”
SECTION 1 ELECTRICAL QUANTITIES
DEFINITION
Active power The time average of the instantaneous power over one period of
wave. Note: For sinusoidal quantities in a two-wire circuit, it is the
product of the voltage, the current, and the cosine of the phase
angle between them. For nonsinusoidal quantities it is the sum of
all the harmonic components. In a polyphase circuit, it is the sum
of the active powers of the individual phases.
Alternating current A periodic current the average value of which over a period is
[AC] (amps) zero. The term refers to a current that reverses at regularly
recurring intervals of time and that has alternatively positive and
negative value.
Apparent (phaser) power S=V•I

where: V is the rms value of the voltage
I is the rms value of the current
Apparent power For sinusoidal quantities in either singlephase or polyphase

circuits, apparent power is the square root of the sum of the
squares of the active and reactive powers.
Direct current A unidirectional current in which the changes in value are either
[DC] (amps) zero or so small that they may be neglected. The term designates a
practically nonpulsating current.
Economy energy Energy sold on an hourly basis to allow the buyer to reduce or
withhold from service more expensive generation or schedule less
from other sources. The buying system has adequate capacity to
cover its own load and may not include economy energy towards
meeting its reserve requirements. Seller may include the
transaction in its reserve.
Reactive power For sinusoidal quantities in a two-wire circuit, reactive power is

the product of the voltage, the current, and the sine of the phase
angle between them. For nonsinusoidal quantities, it is the sum of
all the harmonic components. In a polyphase circuit, it is the sum
of the reactive powers of the individual phases.
Reactive power The portion of electricity that establishes and sustains the electric
and magnetic fields of alternating current equipment, such as
motors and transformers. It also must supply the reactive losses on
transmission facilities. Reactive power is provided by generator,
synchronous condensers or electrostatic equipment such as
capacitors, and directly influences electric system voltage.
3
SECTION 2 ELECTRICITY SYSTEMS
DEFINITION
Adequacy The ability of the electric system to supply the aggregate electrical
demand and energy requirements of the customers at all times, taking
into account scheduled and unscheduled outages of system facilities.
Ancillary services All services required for the secure operation of a transmission system
including those in generating plants and distribution systems.
Examples include frequency regulation, voltage support, and provision
of reserve plant for a contingency event.
Available transmission That amount of transmission capacity available to a transmission

capacity provider which is not reasonably required to accommodate the
transmission provider's: (i) Native Load; (ii) existing contractual
commitments for firm wholesale purchases, exchanges, deliveries and
sales (where not included in Native Load); (iii) existing contractual,
statutory and regulatory commitments for firm transmission service
(where not included in Native Load); (iv) Prudent Reserve and (v)
other pending potential uses of the transmission provider's transmission
by the transmission provider and other transmission users, to the extent
reasonable and consistent with then-applicable Energy Regulatory
Commission policies
Baseload capacity Capacity used to serve an essentially constant level of customer

demand. Baseload generating units typically operate whenever they
are available, and they generally have a capacity factor that is above
60%.
Billing demand The demand that is used to determine the demand charges in
accordance with the provisions of a rate schedule or contract.
Bulk electric system The aggregate of electric generating plants, transmission lines, and
related equipment of a power system; the term may refer to the fact
within one electric utility or within a group of utilities whose
transmission lines are interconnected.
Bulk power system An interconnected system for the movement or transfer electric energy
in bulk on transmission levels.
Capability When referring to generation, capability is synonymous with capacity

(see below).
4
Capacity When referring to generation, capacity is a measure of the ability to
generate electric power, usually expressed in MW or kW. Capacity can
refer to the output of a single generator, a plant, an entire electric
system, a power pool, or a region. There are different subdefinitions,
such as available capacity, installed capacity, operating capacity,
registered capacity, etc.
Capacity emergency A power deficit. Such a deficit exists when a system’s or pool’s
operating capacity plus firm purchases from the grid, to the extent
available or limited by transfer capability, are inadequate to meet this
demand plus its regulating requirements.
Capacity margin The difference between installed generating capacity and peak load, in
relation to the installed generating capacity. When expressed as a
percentage of peak load it is often referred to as plant margin (see also
generation reserve).
Coincident versus The peak demands of individual electric utilities in a region or

noncoincident demand subregion may occur in different months within a given season. The
regional and subregional demands in this report range from coincident
hourly peak demands to noncoincident seasonal peak demands. The
sum of subregional data may not equal regional totals due to
subregional demand diversity. The majority of the regional data
represent noncoincident seasonal peaks.
Conservation energy Energy sold to supplement energy storage or conserve fuel supplies on
the buyer's system. Such transactions normally do not include
capacity, and are counted in the seller's reserves.
Contractual path The physical transmission path(s) between interconnected utility

systems defined by a contract covering the delivery of power from one
system to the other.
Control area An area comprised of an electric system or systems, bounded by

interconnection metering and telemetry, capable of controlling its
generation to maintain its interchange schedule with other control
areas, and contributing to frequency regulation of the interconnection.
A control area must be able to:
• Directly control its generation to continuously balance its
actual interchange and scheduled interchange,
And
• Help the entire interconnection regulate and stabilize the
frequency (see also the definition of “System operator”
below).
A system capable of regulating its generation in order to control its
electric energy interchange with other systems.
5
Demand side The term for all activities or programmes undertaken by an electric
management (DSM) system on its management (DSM) customers to influence the amount
and timing of electricity use.
Direct control load The magnitude of customer demand that can be interrupted at the time
management of the council or reporting party seasonal peak by direct control of the
system operator by interrupting power supply to individual appliances
or equipment on customer premises. This type of control usually
reduces the demand of residential customers. Direct control load
management as defined here does not include interruptible demand.
Distribution The function of distribution is the transport of electrical energy from

transmission network (or from generation within the distribution
network) to the final customer.
Economic dispatch control An automatic generation control subsystem designed to allocate unit
generation to minimize the incremental cost of delivered power.
Electric system losses Total electric energy losses in the electric system. The losses consist of
transmission, transformation and distribution losses between supply
sources and delivery points. Electric energy is lost primarily due to
heating of transmission and distribution elements
Facility ratings The operational limits of an electric system facility or element under a
set of special conditions.
Generation The function of generation is the conversion of primary energy into

electrical energy. This function includes the construction and operation
of power stations and the procurement or harnessing of the primary
energy.
Generation shift Increasing the output from one or more generating units while
simultaneously decreasing the output from others in order to alleviate
problems on the transmission system, most always to the detriment of
economic operation.
Interchange Operational term for electric power that flows from one control area to
another. “Interchange” is synonymous with “transfer”.
• Actual Interchange – Metered electric power that flows from one
control area to another
• Scheduled Interchange - Electric power scheduled to flow
between control areas, usually the net of all sales, purchases, and
wheeling transactions between those areas at a given time.
6
Interconnection The facilities that connect two electric systems or control areas.
Interconnected transmission That portion of each member's transmission system utilized for bulk
systems power transactions, generally at voltages of 115 kV and higher.
Interconnection agreement A document usually filed with the appropriate regulatory authorities
which describes the facilities, understanding and compensation
arrangements agreed by two or more companies for the transfer of
power between them.
Load The amount of electric power required or delivered at any specified

point or points on a system (sometimes referred to as demand).
Load factor The sum of all hourly loads in a given period divided by the peak
hourly load multiplied by the number of hours in the period.
Loop flow The power that flows around a closed transmission path established by
interconnections between systems; it is the circulating power flow that
exists when all systems are supplying their own load from their own
generation; its magnitude depends on the level of the system load,
generation dispatch and system configuration.
Maintenance outage The planned removal of an electrical facility from service to perform
work on that facility so it can continue to adequately perform its
function.
Neighbouring systems Adjacent systems interconnected across a common border.
Parallel path flow The flow of electric power on an electric system’s transmission
facilities resulting from scheduled electric power transfers between two
other electric systems.
Peak demand The peak hour integrated demand that includes the demands of all
customers that a system serves.
Prudent utility practice These practices, methods and acts, including levels of reserves and
provisions for contingencies, as may be modified from time to time,
that are engaged in or approved by any commonly used by utilities to
(i) operate electric system dependably, reliably, safely, efficiently,
economically and in accordance with all applicable laws and
governmental rules, regulations and orders; (ii) serve native load
customers; and (iii) prevent adverse effects on neighboring electric
systems and control areas.
7
Reliability Electric system reliability can be addressed by considering two basic
and functional aspects of the electric system adequacy and security.
Security The ability of the electric system to withstand sudden disturbances

such as electric short circuits or unanticipated loss of system facilities.
Subtransmission network Transmission network between the main grid and distribution
networks. A subtransmission network transmits power only within a
region. Subtransmission voltages are usually 115 kV or lower.
Supply Sale of electricity to an end-user.
System facility Any generating unit, transmission line, transformer, or other piece (or
element) of electrical equipment comprising an electric system.
Transmission The function of transmission is the transfer of electrical energy in bulk

from generation or import sources to the distribution level and to
reduce the investment in generating capacity. This function also
includes transfer of electrical energy between electricity grids or
control areas.
Transmission path An electrical connection, link, or line consisting of one more parallel
transmission elements between two areas of the interconnected
systems, or portions thereof.
Transmission system A network of transmission lines and the switching stations and
substations which the lines are connected.
Transmitting utility Any electric utility (e.g., investor owned, cooperative, municipal or
state agency), qualifying cogeneration facility, qualifying small power
production facility, or federal power agency, that owns or operates
electric power transmission facilities which are used for the sale of
electric energy at wholesale.
8
SECTION 3 SYSTEM OPERATIONS
DEFINITION
Available reserves Generating capacity owned or contracted that is realizable at short notice
to meet increases in demand or losses in generation that are not forecast.
Circulating power Large circulating flows that result from network characteristics and
distribution of flows loads and generation determined by the
superposition of “loop flows” and to parallel path flows.
Daily capacity Capacity, with or without energy, sold in a daily basis to enable buyer to
meet its load, operating reserve, and firm commitments. Buyer includes
the capacity purchased in its operating reserves, seller subtracts from its
operating reserves.
Demand scheduling The decisions and processes which determine the status and level of
and dispatch demand, including pumped storage plant and interconnector transfer, to
which generation is scheduled and dispatched and which includes for
example:
• MW (and associated Mvar) demand which may be scheduled and
dispatched in relation to energy market or price signals
• MW (and associated Mvar) demand which may be offered as
ancillary or essential service product.
Generation reserves Generation capacity in excess of peak demand.
Generation scheduling The decisions and processes which determine which generating plant is
and dispatch synchronized to a power system and what interconnector transfer take
place, and which includes for example:
• target or set point MW at a reference frequency
• target or set point Mvar at a reference voltage
• status in relation to various ancillary or essential service products
(eg frequency response, regulating capacity, black start, system to
generator intertripping status).
Hourly capacity Capacity, with or without energy, sold on an hourly basis to enable the
buyer to meet its load, operating reserve, and firm commitments. Hourly
capacity may only be purchased if the buyer has not intentionally left
generating facilities out of service or avoided other capacity purchases
available to it for economic reasons. Buyer includes the capacity
purchased in its operating reserves; seller subtracts from its operating
reserves.
Installed reserves Installed generating capacity owned or contracted for in excess of peak
demand, expressed as a percent of peak demand. (Sometimes referred to
as plant margin).
9
Operating reserves That reserve above firm system load required to provide for regulation
load forecast error, loss of equipment, local area protection. It consists of
spinning or nonspinning reserve, or both.
Primary reserves Generating capacity under primary control which reacts within seconds
to restore the balance between generation and loads. It is distributed over
the interconnected system.
Regulating capacity Generating capacity under automatic control capable of maintaining

system frequency and tie line loads within acceptable deviations from
schedules (see control area).
Reliability constraint A level of power transfer which, if exceeded, would result in violation of
(limit) an established maximum physical capability or contingency criterion.
Reserve energy Energy sold to enable the buyer to avoid load relief measures if the seller
has no surplus capacity above its operating reserve. Buyer does not add
to its operating reserves, but the transaction has the net effect of
increasing the buyer's spinning reserve. The seller may include the
transaction in its reserve.
Scheduling/Schedule An agreement between the system operations of two companies, which

are either directly interconnected or have arranged for appropriate
transmission services, for one to over-generate and the other to under-
generate in equal amounts and simultaneously for the purpose of
transmitting power from one company to the other.
Scheduling and The deliverables to “customers” from system scheduling and dispatch –
dispatch deliverables the combined activities of generation, demand and transmission
scheduling and dispatch – which include for example:
• MW and Mvar into and out of the system which are secure against
stated generation, demand and transmission contingencies
• frequency to defined quality
• voltage to defined quality
• emergency system restoration for undefined contingencies
• area control/transfer error to defined quality.
Secondary reserves Generating capacity under secondary control which reacts within
minutes to restore exchanges between control areas to schedules and to
restore system frequency to normal.
Short term capacity Capacity and associated energy sold for one or more weeks to
supplement or replace available generating capacity on the buyer’s
system. Buyer includes such capacity in its operating reserves, seller
subtracts from its reserves.
10
Spinning reserves The decisions and processes which determine the status and/or output of
generating plant, interconnector transfers, demand and transmission
plant. The amount of unloaded generating capacity, on units that are in
the generating mode and connected to the interconnected system, which
can be fully applied in 10 minutes or less.
System scheduling and Scheduling normally relates to timescales up to about a week before the
dispatch event down to hours before the event. Dispatching normally means real
time or near real time activity.
Transfer capability The normal maximum amount of power that can be transmitted across
an interface between companies, power pools or other entities,
calculated in accordance with industry-accepted reliability principles.
Transmission The decisions and processes which determine the network topology, the
scheduling and status of transmission plant and the status and level of primary control
dispatch parameters and which includes for example:
• switch and disconnector status
• power transformer and phase change transformer control settings
• reactive compensation plant (series and shunt) status and output and
control settings
• status and configuration of automatic tripping and/or switching
schemes
Wheeling A term commonly used to describe the provision of transmission

services.
11
SECTION 4 ELECTRICITY MARKET
DEFINITION
Associated costs Costs associated with but not necessarily limited to administration,
operation and maintenance, taxes, insurance, financing, transmission
losses, and dispatching services, discernible as costs for firm
transmission service provided. .
Avoided cost The cost which a utility would otherwise incur to provide its own
generation sources if other options such as purchase from non-utility
(QF) sources were not available.
Commercial information Information that can be used in the marketplace.
Commonly owned unit A generating unit whose capacity is owned or leased and divided among
two or more entities. Synonym: Jointly Owned Unit
Competitive bidding Utilities invite bids for new generating capacities as an alternative to the
construction of own generating plant or to the conclusion of a purchase
contract.
Cost based pricing Transmission pricing based upon cost elements.
Economy transactions Sale by one company of lower cost power to permit another company to
reduce higher cost generation, often priced to split the difference in
generating cost and usually cancellable on short notice
Embedded cost pricing Pricing based on original cost less accumulated depreciation (as opposed
to marginal cost pricing and replacement cost).
Existing facilities Those transmission facilities on a member's electrical system that are in
the member's plant accounts as plant-in-service at the time the initial
request for firm transmission service is made.
First price auctions Payment according to the bid price.
Fixed charges Costs that are independent of system operation, resulting from having
made an investment. Fixed charges include a return on the investment,
depreciation and taxes.
Franchises Concessions granted by states or municipalities ensuring the delineation

of exclusive service areas.
12
Hedging Procedure for systematic reduction or elimination of risks associated
with future price fluctuations of a particular commodity. The party
seeking to reduce its risk pays a fixed, up-front fee to another party
which agrees to perform some action in the future at the discretion of the
first party and thus assumes all or a portion of the risks that the first
party would otherwise have to bear.
Incremental additions Additions, improvements or capital betterments (including

interconnection facilities) to a member's/members' electric transmission
system reasonably required for the purpose of increasing transmission
capacity to accommodate a transmission service request of another
member.
Incremental cost A transmitting member's actual cost per unit of rated capacity of
transmission facilities added or upgraded to meet a request for firm
transmission service from a requesting member.
Incremental costs of Long-term expansion costs.

expansion
Incremental facilities Those transmission facilities on a member's electrical system that (i) are
under construction or completed but not cleared into plant-in-service
accounts on the books and records of the member at the time the initial
request for firm transmission service is made, or (ii) are built by a
member as a result of a request for firm transmission service.
Least cost planning Utility expansion planning, taking equal account of generating plant and
demand-side investments.
Lowest losing bid Lowest bid price submitted in the framework of competitive bidding that
does win a contract.
Marginal cost pricing Pricing based on the additional cost needed to supply an infinitesimally
small increment of power/energy etc. – today usually calculated with
replacement cost of capacity investments.
Market based pricing Transmission pricing negotiated on prevailing bulk transmission market
conditions where a competitive market of transmission providers can be
shown to exist.
Nodal pricing Pricing often based on approximate power flow calculations, that assigns
different prices at different nodes in a network.
13
Opportunity costs Extra costs incurred to accommodate a wheeling or transit request from
a third party, resulting from the need to change system dispatch from
minimum cost or from restrictions in interchanges with other systems.
Original cost All historical costs associated with the acquisition of an asset.
Ownership-like rights The rights, benefits and obligations associated with ownership of a fixed
amount of transmission capacity (which shall not be affected by future
changes in rated transfer capability) resulting from construction of
incremental facilities, including the right to use, assign, sell or otherwise
dispose of such transmission capacity for as long as the transmission
user meets the financial obligation to pay for all costs, including, but not
limited to, operation, maintenance and replacement costs and taxes
allocated to such incremental facility; but excluding: (i) legal title, (ii)
participation rights in future increases or decreases in transfer capability,
(iii) the cost of upgrades and (iv) the authority and responsibility for
operating, maintaining and replacing such incremental facilities. Costs
to be allocated to the recipient of ownership-like rights shall be
reasonable, in accordance with the Federal Power Act (FPA) and subject
to reasonable provisions for auditing and oversight of such expenses.
Subject to the foregoing, ownership-like rights shall be enjoyed for the
life of the incremental facilities with which they are associated.
Postage stamp ratemaking The transport customer pays a MW-based fee (regardless of the
distance). Rate making to the companies whose networks are being used
for the transport, irrespective of the point of delivery/point of receipt.
Power exchange A procedure through which generators and customers participate in

short and long-term transactions at a market price.
Privatisation Sale of the property and facilities of a utility owned by federal, state or
municipal government agencies to private shareholders. Because shares
may be owned by individuals, corporations or government agencies and
are traded in the market place, it is often important to note what
percentage of shares is still held by government agencies after a
privatisation. Sometimes shares are not traded in the market, e.g., power
stations in Northern Ireland were privatized by trade sale, there are no
shares traded in the market place.
Replacement costs The amount the asset in question would cost today or in the future.
Resource planning Planning of generating as well as demand side management resources to

meet forecast demand.
14
Retail wheeling Wheeling of power to end-users.
Rolled in costs/pricing Average costs (e.g. per MW of transmission capacity) of all

transmission. Pricing facilities regardless of voltage level or type of
facilities, such as lines, transformers, circuit breakers, etc.
Second price auctions Bid evaluation where all winners are paid according to the bid price of
the best loser.
Self-service wheeling Wheeling of power from industrial autoproducers to their own business
premises.
Shadow price The amount derived from the solution to a mathematical optimization
problem which measures the change in the objective function that will
result from a unit change in the right-hand side of one of the constraints
of the mathematical optimization problem. It can be used to measure
marginal cost if the objective function is the cost for which the marginal
cost is sought and the right-hand side of the relevant constraint is a
measure of the service provided or the output of goods produced.
Sham wholesale A transaction in which a third party supposedly purchases electric

energy. Transaction at wholesale for resale, but actually intends to use it
itself.
Stranded costs Increases in costs or loss of revenue incurred by a utility when customers
switch to buying power from other suppliers.
Stranded investments Refers to the cost of existing equipment of facilities that are no longer
needed after one or more customers stop buying power from the local
utility. Stranded investments may also refer to the cost of equipment of
facilities (not necessarily existing, a future investment may become
stranded) which are no longer needed because of a decision or action of
another participant in the electricity market.
Transit A transit is a transmission of which both the supplier and the recipient
are interconnected power companies (control area operators) whose
service areas (i.e. control areas) are not adjacent to one another.
Third party access Access of third parties to the transmission and/or distribution network of
an electric utility for the purpose of wheeling.
15
Unbundling Separation of generation, transmission and distribution operations. This
may be done by establishing separate management, accounting and cost
responsibility procedures or by establishing separate companies.
Vertically integrated An owner and operator of a power system including generation,

transmission and distribution that has the responsibility for the adequacy
and reliability of its system to all the customers served by it.
Wheeling The transfer of electric power and energy from a supplier to a receiving
load over transmission facilities owned by neither supplier nor receiving
entity.
Wholesale wheeling Wheeling through the network of third parties to utilities purchasing
electric energy solely for resale.
16
SECTION 5 ENTITIES IN THE ELECTRICITY MARKET
DEFINITION
Authorities Authorities are either federal, national, regional or local government
bodies which may have different institutional functions like granting
permits and licenses, developing of legislation and regulation, etc.
Cogenerator A facility which produces electric energy and steam or forms of energy
(such as heat) which are used for industrial and commercial heating or
cooling purposes.
Corporatisation A procedure to unbundle without forming separate companies.
Full requirements Small municipal utilities, cooperatives or electric utilities without own
customers generation whose demand is fully covered by larger utilities and/or
generators in the same area.
Holding company Company owning or controlling all or part of other electric utility
companies.
Holding company Power pool formed by subsidiaries of a holding company.

power pool
Independent power See Non–utility Generator.

Producers [IPP]
Independent system An operating organization not owning facilities with responsibility for
Operator [ISO] the reliable and economic operation of a system.
Investor owned utility Utility owned by private investors. In an investor owned company
officers make decisions and are responsible for their actions to the board
of directors and the shareholders.
License A license is an authorization issued by a regulator to a company

allowing to install a generation, transmission or distribution facility or
system carry on a business which is part of the electricity supply.
Non-utility generator Facility for generating electricity that is not owned by the electric utility
to which it sells its output. Also called independent power producer
[IPP] or, under certain US-specific conditions, Qualifying Facility or
Exempt Wholesale Generator.
17
Operating procedures A set of policies, practices, or system adjustments that may be
automatically or manually implemented by the system operator, within a
specified time frame, to maintain the operational integrity of the
interconnected electric systems. Actions or system adjustments may be
implemented in anticipation of or following a system contingency
(facility outage) or system disturbance.
Power broker An independent group arranging for a transaction between a seller and a
buyer for a fee.
Power marketer An independent group owning no electric power facilities that buys
capacity and energy from suppliers to sell it at a profit to others.
Power pool Grouping of utilities, usually on a voluntary basis, sometimes with
participation of independent power producers, which have agreed to
coordinate their planning and/or operation.
Regulator-Regulation Regulators have the responsibility to implement laws established by

legislative bodies. They have the legal authority to regulate companies
within the electricity sector, usually covering the terms or prices which
they charge for their various services.
Single buyer An arrangement under which all power suppliers compete in selling to a
single buying utility.
System operator A “control area” consists of many generators (which may include IPPS),
many customers with deliveries from many suppliers and a high voltage
transmission network when such an area is provided with the control
means and monitoring equipment to offset the mismatches between
generation and demand and control the power flows. These activities are
under the responsibility of the system operator, through its dispatching
centre(s).
Transmission system The transmission system operator [TSO] is responsible for provision of a
Operator [TSO] reliable transmission service and day-to-day operation of the total
integrated power system. This is similar to the independent system
operator [ISO], but a TSO may own the transmission facilities, and may
not be responsible for economic operation. (Someone else may set the
rules for dispatch, and these may not necessarily be economic).
18
ANNEXES
19
SECTION 1 ELECTRICAL QUANTITIES
DEFINITION
NECA
Active energy (watt-hours) The electrical energy flow, being the time integral of the product
of voltage and the in-phase component of current flow.
Active power (watts) The rate at which active energy is transferred.
Alternating current The flow of electrons in an electrical conductor.

[AC] (amps) Current flow changes direction a number of times per second (the
frequency).
Apparent power (VA) The vector addition of the active power and the reactive power.
NERC
Apparent power The product of the volts and amperes. It comprises both real and
reactive power, usually expressed in kilovoltamperes (kVA) or
megavoltamperes (MVA).
Back-up power Power provided by contract to a customer when that customer’s

normal source of power is not available.
IEEE
Back-up power Power which a wheeling utility must provide by contract or by
virtue of its control area responsibility to a customer as part of
customer wheeling when that customer's normal external source of
power is not available.
NERC
Back-up supply service See Interconnected Operations Services.
Banking Energy delivered or received by a utility with the intent that it will
be returned in kind in the future.
Baseload The minimum amount of electric power delivered or required over

a given period at a constant rate.
20
NECA Current flows in one direction only.
Direct current
[DC] (amps)
NERC
Economy energy Electrical energy produced and supplied from a more economical
source in one system and substituted for that being produced or
capable of being produced by a less economical source in another
system.
Electrical energy The generation or use of electric power by a device over a period
of time, expressed in kilowatt-hours (kWh), megawatt hours
(MWh) or gigawatt hours (GWh).
Emergency energy Electrical energy purchased by a member system whenever an

event on that system causes insufficient Operating Capability to
cover its own demand requirement.
Emergency voltage limits The operating voltage range on the interconnected systems that is
acceptable for the time sufficient for system adjustments to be
made following a facility outage or system disturbance.
Energy consumed Power (kW) x Time (h).
21
NECA
Extra high voltage [EHV] A voltage greater than 345 kV.
IEEE
Extra high voltage [EHV]* A term applied to voltage levels that are higher than 230000 volts.
NERC
Firm energy Electrical energy backed by capacity, interruptible only on
conditions as agreed upon by contract, system reliability
constraints, or emergency conditions and where the supporting
reserve is supplied by the seller.
NECA
Frequency For alternating current electricity, the number of cycles occurring
(Hz) in each second.
1 Hertz (Hz) = 1 cycle per second.
IEEE
Frequency Refers to the number of times per second that the voltage of an
alternating current system varies from positive polarity to negative
polarity and back to positive, each such variation being called a
cycle, with frequency being measured in cycles per second or
Hertz (Hz).
NERC
Frequency bias A value, usually given in megawatts per 0.1 Hertz (MW/0.1 Hz),
associated with a Control Area that relates the difference between
scheduled and actual frequency to the amount of generation
required to correct the difference.
Frequency deviation A departure from scheduled frequency.
Frequency error The difference between actual system frequency and the scheduled
system frequency.
Frequency regulation The ability of a Control Area to assist the interconnected system in
maintaining scheduled frequency. This assistance can include both
turbine governor response and automatic generation control.
*
From IEEE Std. 100-1996. Copyright 1996 IEEE. All rights reserved.
22
Frequency response The ability of a system or elements of the system to react or
(Equipment) respond to a change in system frequency.
Frequency response The sum of the change in demand, pus the change in generation,
(System) divided by the change in frequency, expressed in megawatts per
0.1 Hertz (MW/0.1 Hz).
NECA
High voltage [HV] A voltage greater than 1 kV.
IEEE
High voltage [HV]* A class of nominal system voltages equal to or greater than
100000 V and equal or less than 230000 V.
Inadvertent energy The difference between the quantity of energy scheduled for
delivery and the quantity of energy actually delivered pursuant to
such schedule.
Impedance (Z) The electrical characteristic (measured in ohms) of an electrical

network component, such as a transmission line or transformer,
which quantifies that element's ability to hinder (or impede) the
flow of electrical power.
NERC
Nonfirm energy Electrical energy that may be interrupted by either the provider or
the receiver of the energy by giving advance notice to the other
party to the transaction. This advance notice period is equal to or
greater than the minimum period agreed to in the contract.
Nonfirm energy may also be interrupted to maintain system
reliability of third-party transmission providers. Nonfirm energy
must be backed up by reserves.
Normal voltage limits The operating voltage range on the interconnected systems that is
acceptable on a sustained basis.
Off-peak energy Electrical energy supplied during a period of relatively low system
demands as specified by the supplier.
On-peak energy Electrical energy supplied during a period of relatively high

system demands as specified by the supplier.
*
23
NECA
Operating frequency band, Typically the range 49.9Hz to 50.1Hz.
normal
Operating frequency The range specified as being acceptable for infrequent and
excursion band, normal momentary excursions of frequency outside the normal operating
frequency band typically the range of 49.75 Hz to 50.25 Hz.
Operational frequency The range of frequency within which the power system is to be
tolerance band, normal operated to cater for the occurrence of a contingency event.
IEEE
Operating quantities of a Physical quantities, which can be measured or calculated, that can
power system be used to describe the operating conditions of a power system.
NERC
Power flow program A computerized algorithm that simulates the behavior of the
electric system under a given set of conditions.
Power pool Two or more interconnected electric systems planned and operated
to supply power for their combined demand requirements.
NECA
Power transfer The instantaneous rate at which active energy is transferred.
Reactive energy The alternating exchange of stored energy in inductors and

(var-hours) capacitors, which is the time-integral of the product of voltage and
the out-of-phase component of current flow.
NERC The portion of electricity that establishes and sustains the electric
Reactive power and magnetic fields of alternating-current equipment. Reactive
power must be supplied to most types of magnetic equipment, such
as motors and transformers. It also must supply the reactive losses
on transmission facilities. Reactive power is provided by
generators, synchronous condensers, or electrostatic equipment
such as capacitors and directly influences electric system voltage.
It is usually expressed in kilovars (kvar) or megavars (Mvar).
24
NECA
Reactive power (vars) The rate at which reactive energy is transferred. Reactive power
necessary component of alternating current electricity which is ...?
from active power and is predominantly consumed in the creation
magnetic fields in motors and transformers and produced by ....
as:?
(a) alternating current generators;
(b) capacitors, including the capacitive effect of parallel
transmission wires;
(c) synchronous condensers.
IEEE
Reactive power The portion of electricity that establishes and sustains the electric
and magnetic fields of alternating current equipment. Reactive
power must be supplied to most types of magnetic equipment, such
as motors and transformers. It also must supply the reactive losses
on transmission facilities. Reactive power is provided by
generators, synchronous condensers, or electrostatic equipment,
such as capacitors and directly influences the electric system
voltage.
NERC
Real power The rate of producing, transferring or using electrical energy,
usually expressed in kilowatts (kW) or megawatt (MW).
NECA
Single-phase supply, power in Power (kW) = Voltage (kV) x Current (A).
IEEE
Test energy Energy delivered by one party to another for the purpose of testing
facilities that are either directly or indirectly connected to the
"interconnection facilities" between the two parties. Both the
supplying and receiving systems have adequate capacity to cover
their own load. The receiving party may not include test energy
towards meeting its reserve requirements. The supplying party
may include test energy in its reserve.
25
NECA
Three phase supply, power Power (kW) = 3 x Voltage (kV) x Current (A).
In
NERC
Voltage collapse An event that occurs when an electric system does not have
adequate reactive support to maintain voltage stability. Voltage
collapse may result in outage of system elements and may include
interruption in service to customers.
IEEE
Voltage collape A condition that occurs when a power system does not have
adequate voltage support near the load areas, and a point can be
reached where the demands of loads, abetted by several levels of
transformer tap changer action, cannot be satisfied.
NERC
Voltage control The control of transmission voltage through adjustments in
generator reactive output and transformer taps, and by switching
capacitors and inductors on the transmission and distribution
systems.
Voltage reduction A means to reduce the demand by lowering the customer’s

voltage.
IEEE
Voltage reduction A means to reduce the demand on a utility by lowering the voltage
a few percent from nominal, usually on the distribution or
subtransmission system.
NERC
Voltage stability The condition of an electric system in which the sustained voltage
level is controllable and within predetermined limits.
IEEE
Voltage stability Condition of a power system in which the voltage level is
maintained within acceptable and predetermined limits. Voltage
stability is determined by the characteristics of the network, the
generation on line, the amount and location of reactive sources,
and the operating procedures used.
26
SECTION 2 ELECTRICITY SYSTEM
DEFINITION
NERC
Adequacy The ability of the electric system to supply the aggregate electrical
demand and energy requirements of the customers at all times,
taking into account scheduled and reasonably expected unscheduled
outages of system elements.
IEEE
Adequacy The ability of a bulk electric system to supply the aggregate
electrical demand and energy requirements of the consumers at all
times, taking into account scheduled and reasonably expected
unscheduled outages of system components.
Ancillary services Those services necessary to support the transmission of energy from
resources to loads while maintaining reliable operation of the
transmission provider’s transmission system in accordance with
good utility practice.
NERC
Ancillary services Interconnected operations services identified by the US Federal
Energy Regulatory Commission (Order No. 888 issued April 24,
1996) as necessary to effect a transfer of electricity between
purchasing and selling entities and which a transmission provider
must include in an open access transmission tariff. See also
Interconnected operations services.
NECA
Ancillary services All services required for the secure operation of a transmission
system including these in generating plants and distribution systems.
Examples include frequency regulation, voltage support, and
provision of reserve plant for a contingency event.
IEEE
Asynchronous operation of A machine is in asynchronous operation with a network or another
a machine machine to which it is connected if it is not in synchronous
operation.
Asynchronous operation of a A power system is in asynchronous operation if one or more of its

power system connected synchronous machines are in asynchronous operation.
The term 'nonsynchronous' is sometimes used as a synonym for
'asynchronous'.
27
NERC
Availability A measure of time a generating unit, transmission line, or other
facility is capable of providing service, whether or not it actually is
in service. Typically, this measure is expressed as a percent
available for the period under consideration.
Available resource The sum of existing generating capacity, plus new units scheduled
for service, plus the net of equivalent firm capacity purchases and
sales, less existing capacity unavailable due to planned outages.
Available transfer capability A measure of the transfer capability remaining in the physical
[ATC] transmission network for further commercial activity over and
above already committed uses. ATC is defined as the total transfer
capability (TTC), less the transmission reliability margin (TRM),
less the sum of existing transmission commitments (which includes
retail customer service) and the capacity benefit margin (CBM).
Average demand The electric energy delivered over any interval of time as
determined by dividing the total energy by the units of time in the
interval.
Backup supply service Provides capacity and energy to a transmission customer, as needed,
to replace the loss of its generation sources and to cover that portion
of demand that exceeds the generation supply for more than a short
time.
NECA
Base load generation Generating facilities within a power system which are operated to
the greatest extent possible to maximise system efficiency and to
minimise operating costs.
Note: This term has less meaning in a competitive electricity
Market
Black start Restarting generation units following a black system condition.
Black start capability In relation to a generating unit, the ability to start and synchronise
without using supply from the power system.
NERC
Black start capability The ability of a generating unit or station to go from a shutdown
condition to an operating condition and start delivering power
without assistance from the electric system.
NECA
Black start-up facilities The facilities required to restart generation units following a black
system condition.
28
Black system The absence of voltage on all or a significant part of the
transmission system or within a region following a major supply
disruption, affecting one or more power stations and a significant
number of customers.
NERC
Billing demand The demand upon which customer billing is based as specified in a
rate schedule or contract. It may be based on the contract year, a
contract minimum, or a previous maximum and, therefore, does not
necessarily coincide with the actual measured demand of the billing
period.
IEEE
Bottleneck facility A point on the system, such as a transmission line, through which
electricity must pass to go to its intended buyers. If there is limited
capacity at this point some priorities must be developed to decide
whose power gets through. It also must be decided if the owner of
the bottleneck may, or must, build additional facilities to relieve the
constraint.
Bulk power supply Often this term is used interchangeably with wholesale power
supply. In broader terms, it refers to the aggregate of electric
generating plants, transmission lines, and related-equipment. The
term may refer to those facilities within one electric utility, or within
group of utilities in which the transmission lines are interconnected.
NERC
Bulk transmission A functional or voltage classification relating to the higher voltage
portion of the transmission system.
Capacity The rated continuous load-carrying ability, expressed in megawatts

(MW) or megavolt-amperes (MVA) of generation, transmission, or
other electrical equipment.
Capacity benefit margin That amount of transmission transfer capability reserved by load
(CBM) serving entities to ensure access to generation from interconnected
systems to meet generation reliability requirements. Reservation of
CBM by a load serving entity allows that entity to reduce its
installed generating capacity below that which may otherwise have
been necessary without interconnections to meet its generation
reliability requirements. See Available transfer capability.
29
Capacity emergency A state when a system’s or pool’s operating capacity plus firm
purchases from other systems, to the extent available or limited by
transfer capability, is inadequate to meet the total of its demand,
firm sales, and regulating requirements. See Energy emergency.
IEEE
Capacity emergency* The operating situation that exists when a system is unable to supply
its firm demand and regulating requirements.
NECA
Cascading outage The occurrence of an uncontrollable succession of outages, each of
which is initiated by conditions (e.g. instability or overloading)
arising or made worse as a result of the event preceding it.
Circuit availability Actual Circuit Hours Available Per Year_____

Total Possible Circuit Hours Available Per Year
(8760 x number of circuits)
Cogeneration A generating installation that produces electrical energy and some

other form of useful energy (steam, heat etc) for industrial or
commercial heating or cooling purposes.
IEEE
Cogeneration* The generation of electric energy and commercial or industrial
quality heat or steam from a single facility.
NERC
Coincident demand The sum of two or more demands that occur in the same demand
interval.
IEEE
Coincident demand* Any demand that occurs simultaneously which any other demand,
also the sum of any set of coincident demands.
NECA
Connection, connect, To form a physical link to or through a transmission network or
Connected distribution network.
Connection assets Those components of a transmission or distribution system which

are specifically used to provide connection between separate entities
or to a customer or generator.
*
30
NERC
Contract demand The amount of capacity that a supplier agrees to make available for
delivery to a particular entity and which the entity agrees to
purchase.
IEEE
Contract demand* The demand that the supplier of electric service agrees to have
available for delivery.
Contract path Usually the most direct physical transmission tie between two
interconnected entities. When utility systems interchange power, the
transfer is presumed to take place across the “contract path”
notwithstanding the electrical fact that power flow in the network
will distribute in accordance with network flow conditions. This
term can also mean to arrange for power transfer between systems.
NERC
Contract path A specific contiguous electrical path from a point of receipt to a
point of delivery for which transfer rights have been contracted.
IEEE
Control area An electric power system, or a combination of electric power
systems to which a common single automatic generation control
scheme is applied in order to: 1. match, at all times, the power
output of the generators within the electric power system(s) and
capacity and energy purchased from entities outside the electric
power system (s), with the load within the electric power system (s);
2. maintain, within the limits of good utility practice, scheduled
interchange with other control areas; 3. maintain the frequency of
the electric power system(s) within reasonable limits in accordance
with good utility practice; and 4. provide sufficient generating
capacity to maintain operating reserves in accordance with good
utility practice.
NERC
Control area An electric system or systems, bounded by interconnection metering
and telemetry, capable of controlling generation to maintain its
interchange schedule with other Control Areas and contributing to
frequency regulation of the Interconnection.
IEEE
Critical clearing time If a particular action includes the initiation and isolation of a fault
on a power system, the critical clearing time is the maximum time
between the limitation and the isolation such that the power system
is transiently stable.
*
31
NECA
Current rating The maximum current that may be permitted to flow (under defined
conditions) through a transmission line or other item of equipment
that forms part of a power system.
NERC
Demand The rate at which electric energy is delivered to or by a system or
part of a system, generally expressed in kilowatts or megawatts, at a
given instant or averaged over any designated interval of time.
Demand should not be confused with load.
IEEE
Demand charge* That portion of the charge for electric service based upon a
customer’s demand.
Demand interval* The period of time during which the electric energy flow is
integrated in determining demand.
NERC
Demand interval The time period during which electric energy is measured, usually
in 15- , 30- or 60-minute increments.
Demand side management The term for all activities or programs undertaken by an electric
[DSM] system or its customers to influence the amount or timing of
electricity use.
NECA
Demand side management Activities undertaken by an electricity utility or customers to
[DSM] influence the amount and timing of electricity use.
NERC
Direct control load The customer demand that can be interrupted by direct control of
Management the system operator controlling the electric supply to individual
appliances or equipment on customer premises. This type of
control, when used by utilities, usually involves residential
customers.
IEEE
Distribution The delivery of electricity to the retail customer’s home or business
through relatively low voltage distribution lines.
*
32
NECA
Distribution line The conveyance of electricity through a distribution system. A
power line at voltages below 66 kV, including underground cables,
that is part of a distribution network.
IEEE
Distribution line* Electric power lines which distribute power from a main source
substation to consumers, usually at a voltage of 34.5 kV or less.
NECA
Distribution losses Electrical energy losses incurred in distributing electricity over a
distribution network.
Distribution network A network which is not a transmission network.
Distribution system A distribution network, together with the connection assets

associated with the distribution network, which is connected to
another transmission or distribution system.
IEEE
Distribution system* That portion of an electric system that transfers electric energy from
the bulk electric system to the customers.
NECA
Distribution system control The facility used by a distribution system operator for monitoring
centre and coordinating the operation of the relevant distribution system.
Double circuit line Two power lines built on the same towers or poles.
Dynamic performance The response and behaviour of networks and facilities which are
connected to the networks when the satisfactory operating state of
the power system is disturbed.
NERC
Dynamic schedule service Provides the metering, telemetering, computer software, hardware,
communications, engineering and administration required to
electronically move a transmission customer’s generation or
demand out of the Control area to which it is physically connected
and into a different Control area.
*
From IEEE Std 100-1996. Copyright 1996 IEEE. All rights reserved.
33
IEEE
Economic dispatch The distribution of total generation requirements among alternative
generator sources for optimum system economy with due
consideration of both incremental generating costs and incremental
transmission costs.
Electric system The generation, transmission, distribution, and other facilities,

operated as an electric utility or a portion thereof.
Electric system loss* Total electric energy loss in the electric system. It consists of
transmission, transformation and distribution losses between sources
of supply and points of delivery.
NECA
Electrical energy loss Energy loss incurred in the production, transportation and/or use of
electricity.
NERC
Element Any electric device with terminals that may be connected to other
electric devices, such as a generator, transformer, circuit, circuit
breaker, or bus section.
NECA
Embedded generating unit A generating unit connected within a distribution network and not
having direct access to the transmission network.
NERC
Emergency Any abnormal system condition that requires automatic or
immediate manual action to prevent or limit loss of transmission
facilitates or generation supply that could adversely affect the
reliability of the electric system.
NECA
Energy delivered to The annual energy in MWh delivered from the transmission
customers network to distribution and industrial customers.
Energy emergency A condition when a system or power pool does not have adequate
energy resources (including water for hydro units) to provide its
customers’ expected energy requirement. See capacity emergency.
Energy exchange Transaction whereby the receiver accepts delivery of energy for a
supplier’s account and returns energy later at times, rates, and in
amounts as mutually agreed.
*
34
IEEE
Energy loss* The difference between energy input and output as a result of
transfer of energy between two points.
NECA
Energy not supplied Annual energy in MWh not supplied to customers due to
transmission faults/outages.
NERC
Expected unserved energy The expected amount of energy curtailment per year due to demand
exceeding available capacity. It is usually expressed in megawatt
hours (MWh).
Fault An event occurring on an electric system such as a short circuit, a

broken wire, or an intermittent connection.
NECA
Fault outage Period when equipment is switched out of service by the automatic
opening of a circuit breaker initiated by protection responding to a
fault.
NERC
Firm capacity Capacity that is as firm as the seller’s native load unless modified by
contract. Associated energy may or may not be taken at option of
purchaser. Supporting reserve is carried by the seller.
IEEE
Firm capacity* That firm capacity that is purchased, or sold, in transactions with
other systems and that is not from designated units, but is from the
overall system of the seller. It is understood that the seller provides
reserve capacity for this type of transaction.
NERC
Firm demand That portion of the contract demand that a power supplier is
obligated to provide except when system reliability is threatened or
during emergency conditions.
*
35
IEEE
Firm transmission service Point-to-point transmission service that is reserved and/or scheduled
for a term of one year or more and that is of the same priority as that
of the transmission provider’s firm use of the transmission system.
Firm transmission service that is reserved and/or scheduled for a
term of less than one year shall be considered to be short-term firm
transmission service for purposes of service availability.
NERC
Forecast Predicted demand for electric power. A forecast may be short term
(e.g. 15 minutes) for system operation purposes, long-term (e.g.,
five to 20 years) for generation planning purposes, or for any range
in between. A forecast may include peak demand, energy, reactive
power, or demand profile. A forecast may be made for total system
demand, transmission loading, substation/feeder loading, individual
customer demand, or appliance demand.
Forecast uncertainty Probable deviations from the expected values of factors considered
in a forecast.
IEEE
Forced outage An unplanned facility failure or other system condition that requires
that the failed facility (or portion of the system) be disconnected or
removed from service to maintain the operational integrity of the
remaining electrical system facilities and to limit damage to the
failed facility.
NECA
Forced outage Period when equipment is switched out of service deliberately, with
less than 24 hours notice.
NERC
Forced outage The removal from service availability of a generating unit,
transmission line, or other facility for emergency reasons or a
condition in which the equipment is unavailable due to
unanticipated failure.
Forced outage rate The hours a generating unit, transmission line, or other facility is
removed from service, divided by the sum of the hours it is removed
from service, plus the total number of hours the facility was
connected to the electricity system, expressed as a percent.
36
NECA
Generating unit The actual generator of electricity and all the related equipment
essential to its functioning as a single entity.
Generating system A system comprising one or more generating units.
NERC
Generation (electricity) The process of producing electrical energy from other forms of
energy; also, the amount of electric energy produced, usually
expressed in kilowatt-hours (kWh) or megawatt hours (MWh).
Generation, gross The electrical output at the terminals of the generator, usually
expressed in megawatts (MW).
Generation, net Gross generation minus station service or unit service power
requirements, usually expressed in megawatts (MW).
NECA
Generation centre A geographically concentrated area containing a generating unit or
generating units with significant combined generating capability.
IEEE
Grid A system of interconnected power lines and generators that is
managed so that the generators are dispatched as needed to meet the
requirements of the customers connected to the grid at various
points.
NERC
Indirect demand side Programs such as conservation, improvements in efficiency of
management electrical energy use, rate incentives, rebates and other similar
activities to influence electricity use.
Integrated demand The average of the instantaneous demands over the demand interval.
Instantaneous demand The rate of energy delivered at a given instant.
Intermediate capacity Capacity intended to operate fewer hours per year than baseload
capacity but more than peaking capacity. Typically, such
generating units have a capacity factor of 20% to 60%.
IEEE
Interchange energy* Energy delivered to or received by one electric system from another.
*
37
Interconnection* The physical plant and equipment required to facilitate the transfer
of electric energy between two or more entities. It can consist of a
substation and an associated transmission line and communications
facilities or only a simple electric power feeder.
NECA
Interconnection, interconnector, A transmission line or group of transmission lines that connects the
interconnect, interconnected transmission networks in adjacent regions and which have limited
capability to transfer power between regions.
NERC
Interconnected operations Services that transmission providers may offer voluntarily to a
services (IOS) transmission customer under Federal Energy Regulatory
Commission Order No. 888 in addition to ancillary services. See
also ancillary services.
Interconnected system A system consisting of two or more individual electric systems that
normally operate in synchronism and have connecting tie lines.
IEEE
Interconnected system Individually owned and operated electric utility systems which are
electrically connected to each other through transmission network
components such as lines or transformers for the purpose of
delivering and receiving electrical power.
NECA
Interconnector capability The capability (in MW) of the transmission network connecting two
or more regions to transfer electricity between those regions.
Interconnector flow The quantity of electricity in MW being transmitted by an

interconnector.
IEEE
Internal demand The peak hour integrated megawatt demand defined as the sum of
the demands of all customers that a system serves, including the
demands of the organization providing the electric service, plus the
losses incidental to that service. Internal demand is the sum of the
metered (net) outputs of all generators within the system and the
metered line flows into the system, less the metered line flows out
of the system. The demand of station service or auxiliary needs
(such as fan motors, pump motors, and other equipment essential to
operation of the generating units) should not be included in internal
demand.
*
38
NERC
Interruptible demand The magnitude of customer demand that, in accordance with
contractual arrangements, can be interrupted by direct control of the
system operator or by action of the customer at the direct request of
the system operator. In some instances, the demand reduction may
be initiated by the direct action of the system operator (remote
tripping) with or without notice to the customer in accordance with
contractual provisions. (Interruptible demand as defined here does
not include direct control load management).
IEEE
Interruptible demand The magnitude of customer demand that, in accordance with
contractual arrangements, can be interrupted by direct control of the
system operator or by action of the customer at the direct request of
the system operator. In some instances, the demand reduction may
be effected by direct action of the system operator (remote tripping)
after notice to the customer in accordance with contractual
provisions. For example, demands that can be interrupted to fulfill
planning or operating reserve requirements normally should be
reported as interruptible demand. Interruptible demand as defined
here does not include direct control load management.
NECA
Interruptible load A load which is able to be disconnected, either manually or
automatically initiated, to assist the restoration or control of the
power system frequency to cater for a power system contingency
event or shortages of supply.
IEEE
Interruptible wheeling Wheeling service which by contract terms may be interrupted under
specified conditions by the utility providing the wheeling service.
Large disturbance in a A large disturbance is a disturbance for which the equations that
power system describe the dynamics of the power system cannot be linearized for
the purpose of analysis.
NECA
Limiting element The element that is either operating at its appropriate rating or
would be following the limiting contingency and, as a result,
establishes a system limit.
Load A connection point or defined set of connection points at which

electrical power is delivered to a person or to another network or the
amount of electrical power delivered at a specific connection point,
or aggregated over a defined set of connection points.
39
NERC
Load An end-use device or customer that receives power from the electric
system. Load should not be confused with demand, which is the
measure of power that a load receives or requires. See Demand.
IEEE
Load The total amount of electric power needed by customers at any
given time.
NECA
Load centre A geographically concentrated area containing load or loads with
significant combined consumption capability.
NERC
Load cycle The normal pattern of demand over a specified time period
associated with a device or circuit.
Load duration curve A nonchronological, graphical summary of demand levels with

corresponding time durations using a curve, which plots demand
magnitude (power) on one axis and percent of time that the
magnitude occurs on the other axis.
Load factor A measure of the degree of uniformity of demand over a period of

time, usually one year, equivalent to the ratio of average demand to
peak demand expressed as a percentage. It is calculated by dividing
the total energy provided by a system during the period by the
product of the peak demand during the period and the number of
hours in the period.
NECA
Load factor A multiplier used to describe the additional electrical energy loss for
each incremental of electricity used or transmitted.
IEEE
Load following The obligation of the wheeling utility to provide from its own
generating sources any difference between the amount of power
being wheeled and the instantaneous requirements of the customer
receiving, or the supplier delivering, the wheeled power.
NECA
Load following An electric system’s process of regulating its generation to follow
the changes in its customers’ demand.
40
IEEE
Load frequency control The control system by which a utility continuously balances the
(LFC) generation sources and loads within its control area so as to
maintain the desired net area interconnection power flow and there
by keep frequency constant.
Load ratio share Ratio of a transmission customer’s network load to the transmission
provider’s total load calculated on a rolling twelve month basis.
Load shedding Disconnecting or interrupting the electrical supply to a customer

load by the utility, usually to mitigate the effects of generating
capacity deficiencies or transmission limitations.
NERC
Load shedding The process of deliberately removing (either manually or
automatically) preselected customer demand from a power system
in response to an abnormal condition to maintain the integrity of the
system and minimize overall customer outages.
Load shifting Demand side management programs designed to encourage

consumers to move their use of electricity from on-peak times to
off-peak times.
Maintenance outage The removal of equipment from service availability to perform work
on specific components that can be deferred beyond the end of the
next weekend, but requires the equipment be removed from service
before the next planned outage. Typically, a maintenance outage
may occur anytime during the year, have a flexible start date, and
may or may not have a predetermined duration.
IEEE
Maintenance outage The planned removal of an electrical facility from service to
perform work on that facility so it can continue to adequately
perform its system function.
41
NECA
Major disturbance Loss of supply to end use customers which exceeds one system
minute, or a major variation in frequency or voltage outside limits
declared to customers. [One system minute is the equivalent in
energy to an interruption of the total system load for one minute at
the time of annual peak load.]
IEEE
Mandated wheeling Wheeling service that must be provided under regulatory directive.
NECA
Maximum demand The highest amount of electrical power delivered, or forecast to be
delivered, in a defined period (day, week, month, season or year).
IEEE
Monotonic instability A power system is monotonically unstable for a particular steady-
state operating condition if following a disturbance its instability is
caused by insufficient synchronizing torque.
Note: The trajectory for monotonic instability may not be strictly
monotonic or have less than one oscillation. The main criterion is
insufficient synchronizing torque and the nomenclature is derived
historically from the fact that in most cases for such instability the
trajectories are monotonic.
NECA
Nameplate rating The maximum continuous output, consumption or throughput, in
MW or Mvar, of an item of equipment as specified by the
manufacturer.
National grid The sum of all connected transmission systems and distribution
systems (within Australia).
IEEE
Native load customers The wholesale and retail customers on whose behalf the
transmission provider, by statute, franchise, regulatory
requirements, or contract, has undertaken an obligation to construct
and operate the transmission provider’s system to meet the reliable
electric needs of such customers.
NERC
Net capacity The maximum capacity (or effective rating), modified for ambient
limitations, that a generating unit, power plant, or electric system
can sustain over a specified period, less the capacity used to supply
the demand of station service or auxiliary needs.
42
Noncoincident demand The sum of two or more demands that occur in different demand
intervals.
IEEE
Net energy for load (NEL) The electrical energy requirements of an electric system, defined as
system net generation plus energy received from others less energy
delivered to others through interchange. It includes system losses
but excludes energy required for the storage at energy storage
facilities.
Net internal demand Total internal demand less the sum of direct control load
management and interruptible demand.
NECA
Network The apparatus, equipment, plant and buildings used to convey, and
control the conveyance of electricity to customers excluding any
connection assets.
Network capability The capability of the network or part of the network to transfer
electricity from one location to another.
Network losses Energy losses incurred in the transfer of electricity over a

transmission network or distribution network.
NERC
Nonrecallable available transfer Total transmission capability less the transmission reliability
Capability (NATC) margin, less nonrecallable reserved transmission service (including
the capacity benefit margin).
IEEE
Optimization service Operations to improve service reliability of either or both systems
with or without transferring energy.
Oscillatory instability A power system is oscillatorilly unstable for a particular steady-state

operating condition if following a disturbance its instability is
caused by insufficient damping torque.
Parallel flow Electricity flow on a utility's transmission system resulting from

electricity flows scheduled on any other system. Electricity flows
on all parallel paths in amounts inversely proportional to each path's
impedance.
43
Peak demand The highest electric requirement including losses experienced by a
bulk electric system in a given period (e.g., a day, month, season, or
year). It is equal to the sum of the metered (net) power outputs of all
generators within a system and the metered line flows into the
system, less the metered line flows out of the system. Thus, actual
peak demand is the maximum (usually hourly integrated) demand of
all customer demands plus losses. Often expressed in MW.
NERC
Peak demand The highest electric requirement occurring in a given period (e.g. an
hour, a day, month, season or year). For an electric system, it is
equal to the sum of the metered net outputs of all generators within
a system and the metered line flows in the system, less the metered
line flows out of the system.
IEEE
Peak internal demand The peak hour integrated demand that includes the demands of all
customers that a system serves, the peak demands of the
organization providing the electric service, plus the losses incidental
to that service. Internal Demand is also the sum of the metered (net)
outputs of all generators within the system and the metered
interconnection line flows into the system, less the metered
interconnection line flows out of the system. The demand of station
service or auxiliary needs (such as fan motors, pump motors, and
other equipment essential to the operation of the generating units) is
not included. Internal Demand represents actual customer demand
and, therefore, is net of (reduced by) utility indirect demand–side
management (DSM) programs. In contrast, Internal Demand is
generally not reduced by direct control DSM programs such as
Direct Control Load Management or Interruptible Demand.
However, the representation of direct control DSM programs
depends on specific contract terms and the practices of the
individual electric systems employing these types of programs.
NERC
Peaking capacity Capacity used to serve peak demand. Peaking generating units
operate a limited number of hours per year, and their capacity factor
is normally less than 20%.
NECA
Peak load Maximum load.
Physical plant capability The maximum MW output or consumption which an item of

electrical equipment is capable of achieving for a given period.
44
Planned outage Period when equipment is switched out of service deliberately, and
known about at least 24 hours in advance.
NERC
Planned outage Removing the equipment from service availability for inspection
and/or general overhaul of one or more major equipment groups.
This outage usually is scheduled well in advance.
IEEE
Power flow The delivery of electrical power through any component of the
transmission network.
Power interchange The power flow which occurs between two interconnected electric
utility systems.
Power pool An entity established to coordinate operations to maintain system

stability and achieve least-cost dispatch. The dispatch provides
backup supplies, excess sales, reactive power support, and spinning
reserve. Historically, some of these services were provided on an
unpriced basis as part of the pool member’s utility franchise
obligations. Coordinating operations includes the aggregation and
firming of power from various generators, arranging exchanges
between generators and establishing (or enforcing) the rules of
conduct for wholesale transactions. The pool may own manage
and/or operate the transmission lines (“wires”) or be an independent
entity that manages the transactions between entities.
NECA
Power pool A grouping of utilities with or without independent power producers
which have agreed to coordinate their dispatch of generating plants
to achieve lowest costs of supply.
IEEE
Power system A network of one or more electrical generating units, loads, and/or
power transmission lines, including the associated equipment
electrically or mechanically connected to the network.
NECA
Power system A network including associated generation and transmission and
distribution networks for the supply of electricity, operated as an
integrated arrangement.
45
Power system damping The rate at which electrical disturbances of the satisfactory
operating state reduce in magnitude.
Power system demand The total load (in MW) supplied from the power system.
Power system security The safe scheduling and control of the power system on a
continuous basis.
Power transfer capability The maximum permitted power transfer through a transmission or
distribution network or part thereof.
Profile With respect to the output from a generating unit, electricity

consumption by a load, or power system demand, means the
quantification in MW of the variation of that output, consumption or
demand over a given period.
Pumping load Electrical power consumed by electrically operated pumps.
Ramp rate The rate of change of electricity produced from a generating unit.
Reactive power capability The maximum rate at which reactive energy may be transferred
from a generating unit to a connection point.
Reactive power reserve Unutilised sources of reactive power arranged to be available to

cater for the possibility of the unavailability of another source of
reactive power or increased requirements for reactive power.
NERC
Reactive supply and voltage Provides reactive supply through changes to generator reactive
Control from generating output to maintain transmission line voltage and facilitate electricity
Sources service transfers.
Real power loss Compensates for losses incurred by the host control area (s) as a
Service result of the interchange transaction for a transmission customer
Federal Energy Regulatory Commission’s Order No. 888 requires
that the transmission customer’s service agreement with the
transmission provider identify the entity responsible for supplying
real power loss.
46
Recallable available Total transmission capability less the transmission reliability
Transmission capability margin, less recallable transmission service, less non-recallable
(RATC) transmission service (including the capacity benefit margin). RATC
must be considered differently in the planning and operating
horizons. In the planning horizon, the only data available are
recallable and nonrecallable transmission service reservations,
whereas in the operating horizon transmission schedules are known.
NECA
Regulating capability The capability to perform frequency regulating duty.
Regulating duty In relation to a generating unit, the duty to have its generated output
adjusted frequently so that any power system frequency variations
can be corrected.
NERC
Regulation and frequency Provides for following the moment-to-moment variations in the
Response service demand or supply in a control area and maintaining scheduled
interconnection frequency.
Reliability The degree of performance of the elements of the bulk electric

system that results in electricity being delivered to customers within
accepted standards and in the amount desired. Reliability may be
measured by the frequency, duration, and magnitude of adverse
effects on the electric supply. Electric system reliability can be
addressed by considering two basic and functional aspects of the
electric system - Adequacy and Security.
IEEE
Reliability Electric system reliability has two components – adequacy and
security. Adequacy is the ability of the electric system to supply the
aggregate electrical demand and energy requirements of the
customers at all times, taking into account scheduled and
unscheduled outages of system facilities. Security is the ability of
the electric system to withstand sudden disturbances such as electric
short circuits or unanticipated loss of system facilities.
NECA
Reliability The probability of a system, device, plant or equipment performing
its function adequately for the period of time intended, under the
operating conditions encountered.
47
Reliable The expression of a recognised degree of confidence in the certainty
of an event or action occurring when expected.
Reliable operating state The power system is operating with all parameters within the
normal ranges of tolerance, can sustain any predicted event without
disruption, and has adequate short and medium reserves to meet the
forecast load.
NERC
Restoration service Provides an offsite source of power to enable a host control area to
restore its system and a transmission customer to start its generating
units or restore service to its customers if local power is not
available.
Scheduling, system control Provides for a) scheduling, b) confirming and implementing an

and dispatch service interchange schedule with other control areas, including
intermediary control areas providing transmission service, and c)
ensuring operational security during the interchange transaction.
Security The ability of the electric system to withstand sudden disturbances

such as electric short circuits or unanticipated loss of system
elements.
NECA
Secure operating state The power system is in a satisfactory operating state and system can
be promptly returned to a satisfactory operating state following the
occurrence of a single credible contingency event with the
frequency remaining within the operational frequency tolerance
band.
Single circuit line A power line built on its own individual towers or poles.
Single phase supply Delivery via 1 active and 1 neutral (return) conductors.
IEEE
Short-term firm transmission Firm point-to-point transmission service that is reserved and/or
Service scheduled for a term of less than one year and that is of the same
priority as that of the transmission provider’s firm use of the
transmission system.
Short-term non-firm Non-firm point-to-point transmission service that is reserved and/or

Transmission service scheduled on a daily weekly, or monthly basis for renewable terms
of not more than thirty (30) days each and is subject to interruption.
48
Small disturbance in a A small disturbance is a disturbance for which the equations that
Power system describe the dynamics of the power system may be linearized for the
purpose of analysis.
Spinning reserves The difference between the capability and actual output of
generating units which are operating and connected to the electrical
network.
NERC
Spinning reserve service Provides additional capacity from electricity generators that are on-
line, loaded to less than their maximum output, and available to
serve customer demand immediately should a contingency occur.
IEEE
Stability The ability of a power system to maintain a state of equilibrium
during normal and abnormal system conditions or disturbances.
Steady-state stability Refers to system’s ability to withstand small changes or

disturbances from the equilibrium state without the loss of
synchronism between the synchronous machines in the system.
Steady-state stability of a A power system is steady-state stable for a particular steady-state

Power system operating condition if, following any small disturbance, it reaches a
steady-state operating condition which is identical or close to the
pre-disturbance operating condition. This is also known as small
disturbance stability of a power system.
Steady-state stability limits The steady-state stability limit is a steady-state operating condition
for which the power system is steady-state stable but for which an
arbitrarily small change in any of the operating quantities in an
unfavorable direction causes the power system to lose stability.
This is also known as the small disturbances stability limit.
NECA
Stranded asset An element of the power system that has been made redundant,
wholly or in part, by the installation of competitive generation or
transmission facilities, or by the option of the customer to change
energy type (e.g. electricity to gas).
Substation A facility at which two or more lines are switched for operational
purposes. May include one or more transformers so that some
connected lines operate at different nominal voltages to others.
49
NERC
Subtransmission A functional or voltage classification relating to the lower voltage
portion of the transmission system.
NECA
Supply The delivery of electricity.
NERC
Supplemental reserve service Provides additional capacity from electricity generators that can be
used to respond to a contingency within a short period, usually ten
minutes.
NECA
Switchyard The connection point of a generating unit into the network,
generally involving the ability to connect the generating unit to one
or more outgoing network circuits.
Also, the outdoor component of a substation.
IEEE
Synchronous operation of a A machine is in synchronous operation with a network or another
Machine machine to which it is connected if its average electrical speed
(product of its rotor angular velocity and the number of a pole pairs)
is equal to the angular frequency of the alternating current network
voltage or to the electrical speed of the other machine.
Synchronous operation of a A power system is in synchronous operation if all its connected

Power system synchronous machines are in synchronous operation with the
alternating current network and with each other.
NERC An interconnected combination of generation, transmission, and

System distribution components comprising an electric utility, an electric
utility and independent power producer(s) (IPP), or group of utilities
and IPP(s).
IEEE
System The generation, transmission, distribution and other facilities
operated as an integral unit under one control, management or
operating agent. A control area may provide system operation
services for more than one system.
NECA
System The physically connected electricity facilities operated as an integral
unit under one control, management or operating supervision.
50
System control centre state The facility used by the system operator for directing the minute to
control centre minute operation of the power system (typically the transmission
system and generation dispatch).
System reliability Energy not supplied in MWh x 60

(system minutes) System maximum Demand in MW
IEEE
System stability A condition that exists in a power system if it operates with stability
when not subject to an aperiodic disturbance or becomes constant
following an aperiodic disturbance. A condition that relates to the
ability of generators of a system to maintain synchronism and the
tendency to return to an remain at a steady–state operation point
following a system disturbance.
NECA
Three phase supply Delivery via 3 active and 1 neutral conductors.
IEEE
Transient stability limit The transient stability limit for a particular disturbance is the steady-
state operating condition for which the power system is transiently
stable but for which an arbitrarily small change in any of the
operating quantities in an unfavorable direction causes the power
system to lose stability for that disturbance.
Transient stability of a A power system is transiently stable for a particular steady-state

power system operating condition and for a particular disturbance if, following
that disturbance, it reaches an acceptable steady-state operating
condition.
NERC
Transmission An interconnected group of lines and associated equipment for the
movement or transfer of electric energy between points of supply
and points at which it is transformed for delivery to customers or is
delivered to other electric systems.
NECA
Transmission circuit faults Faults which result in the automatic opening of a circuit breaker
initiated by protection without the intervention staff. Faults may be
caused by lightning, primary equipment failure or secondary
equipment failure.
51
Transmission circuit An outage in excess of one hour of any total line, line segment or
outages line terminal.
NERC
Transmission constraints Limitations of a transmission line or element that may be reached
during normal or contingency system operations.
Transmission customer Any eligible customer (or its designated agent) that can or does
execute a transmission service agreement or can or does received
transmission service.
NECA
Transmission element A single identifiable major component of a transmission system
involving an individual transmission circuit or a phase of that
circuit, a major item of transmission plant necessary for the
functioning of a particular transmission circuit or connection point
(such as a transformer or a circuit breaker).
Transmission equipment Annual Energy Sent Out in Period in MWh x 100

utilisation factor (%) Transmission Transformer Capacity (MVA) x 8760
Transmission line A power line that is part of a transmission network.
Transmission losses (%) The difference between the power measured leaving the
generation plant connected to the transmission system and the
metering points at which the power leaves the transmission
system.
(Energy Sent Out – Electricity received by Distribution Networks) x 100

Energy Sent Out
IEEE
Transmission margin The difference between actual loading and maximum capability of a
transmission facility.
NECA
Transmission network A network operating at nominal voltages of 220 kV and above,
plus any part of a network operating at nominal voltages between
66 kV and 220 kV that operates in parallel to, and provides support
to, the higher voltage transmission network.
NERC
Transmission provider Any public utility that owns, operates, or controls facilities used for
the transmission of electric energy in interstate commerce.
52
Transmission reliability That amount of transmission transfer capability necessary to ensure
margin [TRM] that the interconnected transmission network is secure under a
reasonable range of uncertainties in system conditions. See
Available transfer capability.
IEEE
Transmission path An electrical connection, link, or line consisting of one or more
parallel transmission elements between two areas of the
interconnected electric systems, or portions thereof.
Transmission services The transport of power from one point to another and all of the
ancillary functions which system operators must perform such as
voltage control, load frequency control, etc. which make the
transport of power possible.
Transmission system The facilities owned, controlled, operated or supported by the

transmission provider and/or transmission customer that are used to
provide transmission service.
NECA
Transmission system A transmission network that is connected to another system.
Transmission system Total Energy Not Supplied (MWh) x 60__________

reliability Total Energy Not Supplied (MWh) + Total Energy Delivered (MWh)
Unsupplied energy incidents Annual number of incidents where energy is not supplied to
customers due to transmission outages.
Wheeling The transfer of electric power from a supplier to a receiving load

over transmission facilities owned by neither the supplier or the
receiver.
IEEE
Wheeling The transmission of electricity by an entity that does not own or
directly use the power it is transmitting. Wholesale wheeling is used
to indicate bulk transactions in the wholesale, market, whereas retail
wheeling would allow power producers direct access to retail
customers. This term is sometimes used colloquially as meaning
transmission.
Wheeling customer Any party contracting with a utility for wheeling service on that
utility's transmission system. The party may either be the producer
or purchaser of the electricity being wheeled.
Wheeling utility A utility providing transmission service for another party's

electricity.
53
SECTION 3 SYSTEM OPERATIONS
DEFINITION
IEEE
Actual interchange Metered electric power that flows from one control area to another.
NERC
Actual interchange Metered electric power that flows from one entity to another.
Adequate regulating The minimum on-line capacity that can be increased or decreased to
margin allow the electric system to respond to all reasonable instantaneous
demand changes to be in compliance with the control performance
criteria.
Area control error The instantaneous difference between actual and scheduled
interchange, taking into account the effects of frequency bias.
Automatic generation Equipment that automatically adjusts a control area’s generation to

control (AGC) maintain its interchange schedule plus its share of frequency
regulation.
The following AGC modes are typically available:
a. Tie Line Bias Control - Automatic generation control with both

frequency and interchange terms of area control error considered.
b. Constant Frequency (Flat Frequency) Control - Automatic

generation control with the interchange term of area control error
ignored. This automatic generation control mode attempts to
maintain the desired frequency without regard to interchange.
c. Constant Net Interchange (Flat Tie Line) Control - Automatic

generation control with the frequency term of area control error
ignored. This automatic generation control mode attempts to
maintain interchange at the desired level without regard to
frequency.
IEEE
Automatic generation control The automatic regulation of the power output of electric generators
(AGC) within a prescribed area in response to change in system frequency,
or tie-line loading, so as to maintain the scheduled system
frequency, or the established interchange with other areas within
predetermined limits.
Automatic operating systems Special protection systems (or remedial action schemas) or other
operating systems installed on the electric system that require no
intervention on the part of system operators for their operation.
54
NERC
Automatic operating Special protection systems, remedial action schemes, or other
systems operating systems installed on the electric systems that require no
intervention on the part of system operators.
Available margin The difference between available resources and net internal demand,
expressed as a percent of available resources. This is the capacity
available to cover random factors such as forced outages of
generating equipment, demand forecast errors, weather extremes,
and capacity service schedule slippages.
Capacity margin The difference between net capacity resources and net internal
demand expressed as a percent of net capacity resources.
NECA
Central dispatch The process of dispatch managed centrally for the whole of a power
system. For Australia, the national Grid.
Commission, commit To connect to a network in operating condition.
Commitment The commencement of the process of starting up and synchronising

a generating unit to the power system.
Constraint, constrained A limitation on the capability of a network, load or a generating unit

preventing it from either transferring, consuming or generating the
level of electrical power which would otherwise be available if the
limitation was removed.
NERC
Contingency An event which could reasonably be expected under normal
conditions, for which the design or operation of the relevant part of
the meshed power system would adequately cater so as to avoid
significant disruption to power system security.
The unexpected failure or outage of a system component, such as a
generator, transmission line, circuit breaker, switch, or other
electrical element. A contingency also may include multiple
components, which are related by situations leading to simultaneous
component outages.
IEEE
Contingency An unexpected event usually the loss of one or more elements in the
system. A single contingency refers to one element. A multiple
contingency refers to more than one element simultaneously.
55
NECA
Contingency capacity Actual active and reactive energy capacity, interruptible load
reserve arrangements and other arrangements organised to be available to be
utilised on the actual occurrence of one or more contingency events
to allow the restoration and maintenance of power system security.
Contingency event An event affecting the power system which would be likely to
involve the failure or removal from operational service of a
generating unit or transmission element.
NERC
Contingency reserve An additional amount of operating reserve sufficient to reduce area
control error to zero in ten minutes following loss of generating
capacity, which would result from the most severe single
contingency. At least 50% of this operating reserve shall be
spinning reserve, which will automatically respond to frequency
deviation.
Continuous rating The rating as defined by the equipment owner that specifies the
level of electrical loading, usually expressed in megawatts (MW) or
other appropriate units that a system, facility, or element can support
or withstand through the daily demand cycles without loss of
equipment life.
IEEE
Control center The facility from which instructions and signals are issued for
controlling the bulk electric system and the distribution system.
56
NECA
Credible contingency A contingency event the occurrence of which is reasonably possible
event in the surrounding circumstances.
Critical single credible Examples typically include the unexpected automatic or manual
contingency event disconnection of, one operating generating unit, or the unexpected
disconnection of one major item of transmission plant (e.g.
transmission line, transformer or reactive plant) other than as a
result of a three phase electrical fault.
Critical single credible The contingency capacity reserves available for the purpose of
contingency capacity arresting a frequency decline due to a critical single credible
contingency event.
IEEE
Corrective operation The use of fast automatic controls to quickly reduce transmission
loading within safe limits if a contingency occurs.
NERC
Curtailability The right of a transmission provider to interrupt all or part of a
transmission service due to constraints that reduce the capability of
the transmission network to provide that transmission service.
Transmission service is to be curtailed only in cases where system
reliability is threatened or emergency conditions exist.
Curtailment A reduction in the scheduled capacity or energy delivery.
NECA
Decommission, decommit To disconnect from a network and remove from service.
NERC
De-energize, The act of operation of switching equipment, which results in there
de-energization being a zero voltage on the transmission or distribution network,
beyond the switch.
Derating (generator) A reduction in a generating unit’s net dependable capacity.
57
NECA
Delayed response That part of the contingency capacity reserve capable of realisation
capacity reserve within 5 minutes of a major frequency decline in the power system.
NERC
De-synchronizing Disconnection of a generating unit from the power system, normally
de-synchronization under controlled circumstances.
NECA
Dispatch The operating control of a power system involving:
• the assignment of generation to specific generating stations and
other sources of supply;
• the control of principle tie lines and switching; and
• the scheduling of energy transactions with interconnected
electric utility.
Dispatch algorithm The algorithm used to the loading level for each scheduled
generating unit or scheduled load in each dispatch interval.
NERC
Dispatchable generation Generation available physically or contractually to respond to
changes in system demand or to respond to transmission security
constraints.
Disconnection, disconnect The operation of switching equipment or other action so as to

prevent the flow of electricity.
Disturbance An unplanned event that produces an abnormal system condition.
IEEE
Disturbance in a power system A disturbance in a power system is a sudden change or a sequence
of changes in one or more of the parameters of the system, or in one
or more of the operating quantities.
NERC
Diversity factor The ratio of the sum of the coincident maximum demands of two or
more loads to their noncoincident maximum demand for the same
period.
Dynamic rating The process that allows a system element rating to vary with the
changing environmental conditions in which the element is located.
58
Dynamic schedule A telemetered reading or value that is updated in real time and used
as a schedule in the automatic generation control/area control error
equation and the integrated value of which is treated as a schedule.
Commonly used for “scheduling” commonly owned generation or
remote load to or from another control area.
Dynamic schedule service See Interconnected Operations Services.
Economic dispatch The allocation of demand to individual generating units on line to

effect the most economical production of electricity.
Emergency rating The rating as defined by the equipment owner that specifies the
other appropriate units, that a system, facility, or element can
support or withstand for a finite period. The rating assumes
acceptable loss of equipment life or other physical or safety
limitations for the equipment involved.
IEEE
Emergency rating The rating as defined by the facility owner that specifies the level of
electrical loading (generally expressed in megawatts, or other
appropriate units) that a facility can support or withstand for a
period of time sufficient for the adjustment of transfer schedules or
generation dispatch in an orderly manner with acceptable loss of
equipment life, or other physical or safety limitations, of the facility
or equipment involved. This rating is not a continuous rating.
Emergency transfers Electric power that is scheduled and reliably transferred from an
area with sufficient generating capacity margin to an area that has a
temporary deficiency of generating capacity or other deficit system
condition.
Emergency voltage limits The operating voltage range on the interconnected systems, above or
below nominal voltage and generally expressed in kilovolts, that is
acceptable for the time sufficient for system adjustments to be made
following a facility outage or system disturbance.
NERC
Energize, energization The operation of switching equipment, which results in there being
a finite voltage on the transmission or distribution network, beyond
the switch.
59
Forced derating An unplanned component failure (immediate, delayed, postponed)
or other condition that requires the output of the unit be reduced
immediately or before the next weekend.
NECA
Frequency response mode The mode of operation of a generating unit which allows automatic
changes to the generated power when the frequency of the power
system changes.
NERC
Host control area A Control Area that confirms and implements scheduled
(HCA) interchange for a Transmission Customer that operates generation or
serves customers directly within the Control Area’s metered
boundaries. The Control Area within whose metered boundaries a
commonly owned unit or terminal is physically located.
Imbalance A condition where the generation and interchange schedules do not

match demand.
Inadvertent energy A control area’s accounting of its inadvertent interchange, which is

Balancing the accumulated difference between actual and scheduled
interchange.
Inadvertent interchange or The difference between a control area’s net actual interchange and
Inadvertent net scheduled interchange.
IEEE
Inadvertent interchange The difference between a control area's actual interchange and
scheduled interchange.
NERC
Incremental energy cost The additional cost that would be incurred by producing or
purchasing the next available unit of electrical energy above the
current base cost.
Incremental heat rate The amount of additional heat that must be added to a thermal
generating unit at a given loading to produce an additional unit of
output. It is usually expressed in British thermal units per kilowatt
hour (Btu/kWh) of output.
Interchange Electric power or energy that flows from one entity to another.
60
IEEE
Interchange Operational term for electric power that flows from one control area
to another. “Interchange” is synonymous with “transfer”.
NERC
Interchange scheduling The actions taken by scheduling entities to arrange transfer of
electric power. The schedule consists of an agreement on the
amount, start and end times, ramp rate, and degree of firmness.
Interface The specific set of transmission elements between two areas or

between two areas comprising one or more electrical systems.
Intermediary control area A control area that has connecting facilities in the scheduling path
between the sending and receiving control areas and has operating
agreements that establish the conditions for the use of such
facilities.
Intra-control area A transaction from one or more generating sources to one or more
transactions delivery points where all the sources and delivery points are entirely
within the metered boundaries of the same control area.
IEEE
Interconnection When capitalized (Interconnection), any one of the four major
interconnected areas of NERC, which are comprised of one or more
of the electric systems in the United States and Canada: the Eastern
Interconnection, the Western Interconnection, the Quebec
Interconnection and the ERCOT Interconnection. When not
capitalized (interconnection), the facilities that connect two systems
or control areas.
NERC
Island A portion of a power system or several power systems that is
electrically separated from the interconnection due to the
disconnection of transmission system elements.
Joint unit control Automatic generation control of a generating unit by two or more
entities.
Lambda A term commonly given to the incremental cost that solves the
economic dispatch calculation. It represents the cost of the next
kilowatt hour that could be produced from dispatchable units on the
system.
61
Loss of load expectation The expected number of days in the year when the daily peak
(LOLE) demand exceeds the available generating capacity. It is obtained by
calculating the probability of daily peak demand exceeding the
available capacity for each day and adding these probabilities for all
the days in the year. The index is referred to as hourly loss-of-load-
expectation if hourly demands are used in the calculations instead of
daily peak demands. LOLE also is commonly referred to as loss-of
load-probability.
Maintenance derating The removal of a component for scheduled repairs that can be
deferred beyond the end of the next weekend, but requires a
reduction of capacity before the next planned outage.
Margin The difference between net capacity resources and net internal
demand. Margin is usually expressed in megawatts (MW).
Metered value A measured electrical quantity that may be observed through

telemetering, supervisory control and data acquisition (SCADA), or
other means.
Metering The methods of apply? devices that measure and register the amount
and direction of electrical quantities with respect to time.
Must-run generation Generation designated to operate at a specific level and not available
for dispatch.
Net capacity resource The total owned capacity, plus capacity available from independent
power producers, plus the net of total capacity purchases and sales,
less the sum of inoperable capacity, and less planned outages.
Net dependable capacity The maximum capacity a unit can sustain over a specified period.
Net energy for load The electrical energy requirements of an electric system, defined as
system net generation, plus energy received from others, less energy
delivered to others through interchange. It includes system losses
but excludes energy required for storage at energy storage facilities.
Net internal demand The metered net outputs of all generators within a system, plus the
metered line flows into the system, less the metered line flows out
of the system, less direct control load management and, less
interruptible demand.
62
Net schedule The algebraic sum of all scheduled transactions across a given
transmission path or between control areas for a given period or
instant in time.
NECA
Non-credible contingency A single credible contingency event, that has the potential for the
event most significant impact on the power system at that time. Typically
this would be the instantaneous loss of the largest generating unit on
the power system or the instantaneous loss of an interconnection.
NERC
Nonspinning reserve That operating reserve not connected to the system but capable of
servicing demand within a specific time, or interruptible demand
that can be removed from the system in a specified time.
Interruptible demand may be included in the nonspinning reserve
provided that it can be removed from service within ten minutes.
Normal (precontingency) Operating procedures that are normally invoked by the system
operating procedures operator to alleviate potential facility overloads or other potential
system problems in anticipation of a contingency.
Normal rating The rating as defined by the equipment owner that specifies the
other appropriate units that a system, facility, or element can support
or withstand through the daily demand cycles without loss of
equipment life.
Off peak Those hours or other periods defined by contract or other
agreements or guides as periods of lower electrical demand.
On peak Those hours or other periods defined by contract or other

agreements or guides as periods of higher electrical demand.
Open-access same-time An electronic posting system for transmission access data that
information system (OASIS) allows all transmission customers to view the data simultaneously.
Operating criteria The fundamental principles of reliable interconnected systems

operation.
Operating guides Operating practices that a control area or systems functioning as part
of a control area may wish to consider. The application of guides is
optional and may vary among control areas to accommodate local
conditions and individual system requirements.
63
Operating instructions Training documents, appendices, and other documents that explain
the criteria, requirements, standards, and guides.
Operating policies The doctrine developed for interconnected systems operation. This
doctrine consists of criteria, standards, requirements, guides, and
instructions and apply to all control areas.
IEEE
Operating procedures A set of policies, practices, or system adjustments that may be
automatically or manually implemented by the system operator
within a specified time frame, to maintain the operational integrity
of the interconnected electric systems. These actions or system
adjustments may be implemented in anticipation of or following a
system contingency (facility outage) or system disturbance, and
include, among others, opening or closing switches (or circuit
breakers) to change the system configuration, the redispatch of
generation, and the implementation of Direct Control Load
Management or Interruptible Demand.
NERC
Operating requirements Obligations of a control area and systems functioning as part of a
control area.
Operating reserve That capability above firm system demand required to provide for
regulation, load forecasting error, equipment forced and scheduled
outages, and local area protection.
IEEE
Operating reserves That reserve above firm system load required to provide for
regulation, load forecast error, loss of equipment, and/or local area
protection. It consists of spinning or nonspinning reserve, or both.
NERC
Operating standards The obligations of a control area and systems functioning as part of
a control area that are measurable. A standard may specify
monitoring and surveys for compliance.
Operating transmission The maximum value of the most critical system operating
limit parameter(s) which meets: (a) precontingency criteria as determined
by equipment loading capability and acceptable voltage conditions,
(b) transient performance criteria or, (c) postcontingency loading
and voltage criteria.
64
Overlap regulation A method of providing regulation service in which the control area
service providing the regulation service incorporates some or all of another
control area’s tie lines and schedules into its own automatic
generation control/area control error equation.
IEEE
Parallel flows Electricity flow on a utility’s transmission system resulting from
electricity flows scheduled on any other system. Electricity flows on
all parallel paths in amounts inversely proportional to each path’s
impedance.
NERC
Parallel path flow The difference between the scheduled and actual power flow,
assuming zero inadvertent interchange, on a given transmission
path. Synonyms: Loop Flows, Unscheduled Power Flows, and
Circulating Power Flows.
Planning (System) The process by which the performance of the electric system is
evaluated and future changes and additions to the bulk electric
systems are determined.
Planning guides Good planning practices and considerations that Regions,

subregions, power pools, or individual systems should follow. The
application of Planning Guides may vary to match local conditions
and individual system requirements.
Planning policies The framework for the reliability of interconnected bulk electric
supply in terms of responsibilities for the development of and
conformance to NERC Planning Principles and Guides and
Regional planning criteria or guides, and NERC and Regional issue
resolution processes. NERC Planning Procedures, Principles, and
Guides emanate from the Planning Policies.
Planning principles The fundamental characteristics of reliable interconnected bulk

electric systems and the tenets for planning them.
Planning procedures An explanation of how the planning policies are addressed and
implemented by the NERC Planning Committee, its subgroups, and
the Regional Councils to achieve bulk electric system reliability.
65
Planning reserve The difference between a control area’s expected annual peak
capability and its expected annual peak demand expressed as a
percentage of the annual peak demand.
IEEE
Planned derating The removal of a component for repairs that is scheduled well in
advance and has a predetermined duration.
Planned outage The removal of a unit from service to perform work on specific
components that is scheduled well in advance and has a
predetermined duration (e.g. nuclear refueling, annual overhaul,
inspections, testing).
Point(s) of delivery Point(s) of interconnection on the transmission provider’s

transmission system where capacity and/or energy transmitted by
the transmission provider will be made available to the receiving
party.
NERC
Point of delivery A point on the electric system where a power supplier or wheeling
entity delivers electricity to the receiver of that energy or to a
wheeling entity. This point could include an interconnection with
another system or a substation where the transmission provider’s
transmission and distribution systems are connected to another
system.
Point of receipt A point on the electrical system where an entity receives electricity
from a power supplier or wheeling entity. This point could include
an interconnection with another system or generator bus bar.
IEEE
Point(s) of receipt Point(s) of interconnection on the transmission provider’s
transmission system where capacity and/or energy will be made
available to the transmission provider by delivering party.
Point-to-point transmission The reservation and/or transmission of energy on either a firm basis
service and/or non-firm basis from the point(s) of receipt to the point(s) of
delivery including any ancillary services that are provided by the
transmission provider in conjunction will such service.
66
NERC
Postcontingency operating Operating procedures that are invoked by the system operator to
procedures mitigate or alleviate system problems after a contingency has
occurred.
IEEE
Power flow The delivery of electrical power through any component of the
Power transfer Often used interchangeably with "power interchange", but is more
general in that it refers to movement of power by reducing one or
more generating sources and increasing one or more sources of
similar amount anywhere in the interconnected systems.
Power transfer distribution A measure of the responsiveness or change in electrical loadings on

factor (PTDF) system facilities due to a change in electric power transfer from one
area to another, expressed in percent (up to 100%) of the change in
power transfer. The PTDF applies only for the pre-contingency
configuration of the systems under studies.
NECA
Pre-dispatch Forecast of dispatch performed one day before the trading day on
which dispatch is scheduled to occur.
Pre-dispatch schedule A schedule published daily for each trading interval for the period
from the 0430 trading interval on the next day to the 0400 trading
interval on the second day after the day on which the pre-dispatch
schedule is published.
NERC
Pseudo-tie A telemetered reading or value that is updated in real time and used
as a tie line flow in the automatic generation control/area control
error equation but for which no physical tie or energy metering
actually exists. The integrated value is used as a metered
megawatthour (MWh) value for interchange accounting purposes.
IEEE
Preventive operation The practice of limiting transfers to what can be safety transmitted
even if the worst single contingency occurs.
NERC
Ramp period The time between ramp start and end times usually expressed in
minutes.
67
Ramp rate (Schedule) The rate, expressed in megawatts per minute, at which the
interchange schedule is attained during the ramp period.
Rating The operational limits of an electric system, facility or element

under a set of specified conditions.
NECA
Reactive power support, The provision of reactive power.
Reactive support
NERC
Real-time operations The instantaneous operations of a power system as opposed to those
operations that are simulated.
Recallability The right of a transmission provider to interrupt all or part of a

transmission service for any reason, including economic, that is
consistent with Federal Energy Regulatory Commission policy and
the transmission provider’s transmission service tariffs or contract
provisions.
Regional transmission group Voluntary organisation of transmission owners, transmission users,

(RTG) and other entities interested in coordinating transmission planning
and expansion and use on a regional and interregional basis.
Regulating reserve An amount of spinning reserve responsive to automatic generation

control, which is sufficient to provide normal regulating margin.
Reliability criteria Principles used to design, plan, operate, and assess the actual or
projected reliability of an electric system.
Rerating A change in the capability of a generator due to a change in

conditions such as age, upgrades, auxiliary, equipment, cooling etc.
68
NECA
Reserve The active power and reactive power available to the power system
at a nominated time but not currently utilised.
NERC
Response rate Emergency response rate - The rate of load change that a generating
unit can achieve under emergency conditions, such as loss of a unit,
expressed in megawatts per minute (MW/Min).
IEEE
Right-of-way (ROW) The defined corridor under and to each side of a transmission line in
which land use is restricted so as to permit safe operation of the line.
NERC
Schedule An agreed-upon transaction size (megawatts), start and end time,
beginning and ending ramp times and rate, and type required for
delivery and receipt of power and energy between the contracting
parties and the control area(s) involved in the transactions.
Schedule confirmation The process of verifying the accuracy of an interchange schedule(s)

between all the entities to the transaction.
Schedule implementation The process of entering the details of a negotiated schedule into the
control system(s) of a control area(s) involved in a transaction of
power and energy.
Schedule period The length of time between the nominal starting and ending time of
each schedule.
Scheduled derating A combination of maintenance and planned deratings.
Scheduled losses The scheduled power transfer to a transmission provider for

compensation of losses incurred on that provider’s transmission
system due to a transfer of power between purchasing and selling
entities.
Scheduled interchange Electric power scheduled to flow between entities, usually the net of
all sales, purchases, and wheeling transactions between those areas
at a given time.
69
IEEE
Scheduled interchange Electric power scheduled to flow between control areas, usually the
net of all sales, purchases, and wheeling transactions between those
areas at a given time.
Single contingency The sudden, unexpected failure or outage of a system facility or

element (generating unit, transmission line, transformer, etc.).
NECA
Single contingency A contingency event which in the circumstances, is considered to
have a very low probability of occurrence. Examples could include
three phase electrical faults on the power system, or simultaneous
disruptive events such as multiple generating unit failures or double
circuit transmission line failure caused by tower collapse.
Single credible contingency A sequence of related events which result in the removal from
event service of one transmission or distribution line, or transformer. The
sequence of events may include the application and clearance of a
fault of defined severity.
Short term capcity reserve The amount of surplus or unused generating capacity indicated as
being available for any half hour period, assessed as being in excess
of the capacity requirement to meet the current forecast load
demand.
Short term capacity The level of short term capacity reserve required for a particular
reserve standard period.
NERC
Small-signal stability The ability of the electric system to withstand small changes or
disturbances without the loss of synchronism among the
synchronous machines in the system.
Spinning reserve An amount of spinning reserve responsive to automatic generation

control, which is sufficient to provide normal regulating margin.
IEEE
Spinning reserves The difference between the capability and actual output of
generating units which are operating and connected to the electrical
network.
70
Stability The ability of a power system to maintain a state of equilibrium
during normal and abnormal system conditions or disturbances.
NERC
Stability limit The maximum power flow possible through some particular point in
the system while maintaining stability in the entire system or the
part of the system to which the stability limit refers.
Storage Energy transferred from one entity to another entity that has the
ability to conserve the energy (i.e., stored as water in a reservoir,
coal in a pile, etc.) with the intent that the energy will be returned at
a time when such energy is more usable to the original supplying
entity. See also Banking and Energy Exchange. Synonym: Energy
Banking.
Subregion A portion of a Region. A subregion may consist of one or more

control areas.
Substation A facility for switching electrical elements, transforming voltage,

regulating power, or metering.
Supervisory control A form of remote control comprising an arrangement for the

selective control of remotely located facilities by an electrical means
over one or more communications media.
Surge A transient variation of current, voltage, or power flow in an electric

circuit or across an electric system.
IEEE
Synchronism The process of operating all alternating current generating units
connected to the same electrical system at the same frequency with
their voltages having the same polarity at every instant.
NERC
Synchronize The process of connecting two previously separated alternating
current apparatuses after matching frequency, voltage, phase angles,
etc. (e.g., parallelling a generator to the electric system).
System operator An individual at an electric system control center whose

responsibility it is to monitor and control that electric system in real
time.
71
Telemetering The process by which measurable electrical quantities from
substations and generating stations are instantaneously transmitted
using telecommunication techniques.
Thermal rating The maximum amount of electrical current that a transmission line
or electrical facility can conduct over a specified time period before
it sustains permanent damage by overheating or before it violates
public safety requirements.
Tie line A circuit connecting two or more control areas or systems of an

electric system.
Tie line bias A mode of operation under automatic generation control in which
the area control error is determined by the actual net interchange
minus the biased scheduled net interchange.
Time error An accumulated time difference between control area system time
and the time standard. Time error is caused by a deviation in
interconnection frequency from 60.0 Hertz.
Time error correction An offset to the interconnection’s scheduled frequency to correct for
the time error accumulated on electric clocks.
Total transfer capability The amount of electric power that can be transferred over the
(TTC) interconnected transmission network in a reliable manner based on
all of the following conditions:
1. For the existing or planned system configuration, and with
normal (precontingency) operating procedures in effect, all
facility loadings are within normal ratings and all voltages are
within normal limits.
2. The electric systems are capable of absorbing the dynamic
power swings, and remaining stable, following a disturbance
that results in the loss of any single electric system element,
such as a transmission line, transformer, or generating unit.
3. After the dynamic power swings subside following a disturbance
that results in the loss of any single electric system element as
described in 2 above, and after the operation of any automatic
operating systems, but before any postcontingency operator-
initiated system adjustments are implemented, all transmission
facility loadings are within emergency ratings and all voltages
are within emergency limits.
72
4. With reference to condition 1 above, in the case where
precontingency facility loadings reach normal thermal ratings at
a transfer level below that at which any first contingency
transfer limits are reached, the transfer capability is defined as
that transfer level at which such normal ratings are reached.
5. In some cases, individual system, power pool, subregional, or

Regional planning criteria or guides may require consideration
of specified multiple contingencies, such as the outage of
transmission circuits using common towers or rights-of-way, in
the determination of transfer capability limits. If the resulting
transfer limits for these multiple contingencies are more
restrictive than the single contingency considerations described
above, the more restrictive reliability criteria or guides must be
observed. See Available Transfer Capability.
IEEE
Transfer capability The measure of the ability of interconnected electric systems to
reliably move or transfer electric power (generally measured in
megawatts) from one area to another area by way of all transmission
lines (or paths) between those areas under specified system
conditions. In this context, area refers to the configuration of
generating stations, switching stations, substations, and connecting
transmission lines that may define an individual electric system,
power pool, control area, subregion, or Region, or a portion thereof.
Transient stability A condition that exists in a power system if after a periodic

disturbance, the system regains steady-state stability.
NERC
Transient stability The ability of an electric system to maintain synchronism between
its parts when subjected to a disturbance of specified severity and to
regain a state of equilibrium following that disturbance.
Unit commitment The process of determining which generators should be operated

each day to meet the daily demand of the system.
Wheeling A term commonly used to describe the provision of transmission

services.
73
SECTION 4 ELECTRICITY MARKET
DEFINITION
IEEE
Ancillary cost 1. A cost of providing an auxiliary or supplementary good and/or
service that is related to, required by, or integral to another good
or service.
2. An evolving term of art in the context of electricity transmission,
it generally refers to the cost of any service provided in support of
the transmission grid. Such services might include: reactive
power, frequency support, phase shifting, black start capability,
circuit disconnection or other such services that may be provided
on request of system control center.
Bilateral contract A direct contract between the power producer and user or broker
outside centralized power pool.
NERC
Broker A third party who establishes a transaction between a seller and a
purchaser. A broker does not take title to capacity or energy.
IEEE
Buy-through An agreement between utility and customer import power when the
customer’s service would otherwise be interrupted.
Capacity Purchases/Sales Total of all capacity purchases/sales from entities outside the
interconnection boundaries of the reporting party. Transfers such as
economy, maintenance, general purpose, nondisplacement or
emergency should not be included.
NECA
Common service A service that ensures the integrity of a transmission or distribution
system and benefits all network users and cannot reasonably be
allocated to network users on a locational basis.
Connection point The agreed point of supply established between network service
provider(s) and another code participant, non-registered customer or
franchise customer.
Constrained off In respect to a generating unit, the state where, due to a constraint on
a network the output of that generating unit is limited below the level
to which it would otherwise have been dispatched by National
Electricity Market Management Company Limited (NEMMCO) on
the basis of its dispatch offer.
74
Contestable In relation to transmission services or distribution services, a service
which is permitted by the laws of the relevant participating
jurisdiction to be provided by more than one network service provider
as a contestable service or on a competitive basis.
Cost pool A pool used to collect the costs associated with the use of asset
categories by a group of distribution network users with like load,
metering and voltage characteristics for the purpose of preparing
distribution service prices.
Cost reflective network A cost allocation method which reflects the value of assets used to
pricing provide transmission or distribution services to network users.
NERC
Contract path A specific contiguous electrical path from a point of receipt to a point
of delivery for which transfer rights have been contracted.
NECA
Contract path The transmission path specified in a contract for power transport
transactions. Frequently a considerable amount of the transaction
will not flow over this path.
Delivery Delivery is the supply of electric energy to a point of exchange.
IEEE
Delivering Party The entity supplying the capacity and/or energy to be transmitted at
point(s) of receipt.
NECA
Demand based price A price expressed in dollars per kilowatt per time period or dollars
per kilovolt ampere per time period.
Dispatch bid A bid submitted by a market participant for dispatch of a scheduled

load.
Dispatch offer An offer submitted by a market participant for dispatch of a

scheduled generating unit.
Dispatched generating unit A generating unit which has received instructions from the system
operator in accordance with a dispatch schedule.
Dispatched generation The generation which has been dispatched as part of central dispatch.
Dispatched load The load which has been dispatched as part of central dispatch.
75
IEEE
Distribution factors Measures of the electrical effects of an electric power transfer on
system facilities or an outage (or removal from service) of a system
facility or element on the remaining system facilities.
Economic efficiency 1. The relationship between the input of scarce resources and the
resulting output of a goods and services; production of a given output
(of one or more goods and/or services) with the smallest total
expenditure for resources; with a given set of resources producing
outputs with the greatest value to society. 2. How closely this ideal is
approached.
Economy transfers Electric power that is scheduled and reliably transferred between two
areas or entities in the short term, or on the spot market, to take
advantage of the disparity in the cost of electric power between the
entities, thereby reducing, operating costs and providing mutual
benefit.
NERC
Energy constrained scheduled A scheduled generating unit in respect of which the amount of
generating unit electricity it is capable of supplying on a trading day is less than the
amount of electricity it would supply on that trading day if it were
dispatched to its full nominated availability for the whole trading day.
Energy constrained A scheduled load in respect of which the amount of electricity it can
scheduled load take in a trading day, if normally off, or it can off-load, if normally
on, is constrained.
NECA
Energy based price A price expressed in cents per kilowatt hour of energy.
IEEE
Firm purchase A purchase of electricity by one utility from another under contract,
arranged in advance of delivery.
Firm transmission service Point-to-point transmission service that is reserved and/or scheduled
for a term of one year or more and that is of the same priority as that
of the transmission provider’s firm use of the transmission system.
Firm transmission service that is reserved and/or scheduled for a term
of less than one year shall be considered to be short-term firm
transmission service for purposes of service availability.
Fixed cost (FC) The cost a firm would incur even if its output for the period in
question were zero. This cost includes contractual commitments and
investment-related costs to which a firm is already committed.
76
Incremental cost The additional cost (or increase in total cost) required to produce a
given incremental of additional output.
Long-run marginal cost Marginal cost – i.e., the increase (decrease) in total cost required to
(LRMC) produce one unit more (less) – under the conditions of the long run,
namely that all of the factors of production can be fully adjusted.
Long-term marginal cost Marginal cost, under conditions of the long term.
(LTMC)
Marginal Cost The cost to the utility of providing the next (marginal) unit of
electricity, irrespective of sunk costs.
Marketer An agent for generation projects who markets power on behalf of the
generator. The marketer may also arrange transmission, firming or
other ancillary services as needed. Though a marketer may perform
many of the same functions as a broker, the difference is that a
marketer represents the generator while a broker acts as a middleman.
NERC
Marketer An entity that has the authority to take title to electrical power
generated by itself or another entity and remarket that power at
market-based rates.
IEEE
Opportunity cost or 1. (General economics) the value or worth of the next best use (or
economic cost opportunity) for an economic good, or the value of the sacrificed
alternative. 2. (General economics) the cost savings or benefit
foregone by adhering to an externally imposed constraint (e.g.,
government edict or pre-existing contractual obligations). That is, the
difference between what can be achieved while adhering to the
constraint and what can be achieved in the absence of the constraint.
3. (Electric power industry context) increase in net cost including the
net cost of economy energy purchases and sales or other valid
economic costs which result from the provision of an incremental
transmission service.
NECA
Postage stamp basis A system of charging network users for transmission service or
distribution service in which the price per unit is the same regardless
of how much energy is used by the network user or the location in the
transmission network or distribution network of the network user.
Purchase Purchase is the receipt of electric energy at a point of delivery.
77
NERC
Regulating capability Constraints on the formulation of a realizable dispatch or predispatch
constraints schedule due to the need to provide for regulating capability.
Regulatory authority Any state regulatory authority or local governing board acting as a
regulatory body, and any federal regulatory body, including Federal
Energy Regulatory Commission (FERC), with jurisdiction over a
decision, resolution or action arising in connection with these Bylaws.
NECA
Settlements The activity of producing bills and credit notes for market
participants.
Short term forward The market established by National Electricity Market Management
market (STFM) Company Limited (NEMMCO) to facilitate trading by market
participants in short term hedge contracts in the trading days leading
up to dispatch.
Short term forward A hedge contract traded in the short term forward market.
market contract
Short term forward A transaction in the short term forward market if National Electricity
market transaction Market Management Company Limited (NEMMCO) is conducting
the short term forward market or a transaction involving a short term
forward market contract to which NEMMCO is a counterparty.
Spot market The spot market established and operated by National Electricity
Market Management Company Limited (NEMMCO) as a mechanism
for balancing electricity supply and demand and setting a spot price
for electricity at each regional reference node and market connection
point for each trading interval.
Spot market transaction In each trading interval, in relation to each connection point for which
a market participant is financially responsible, a spot market
transaction occurs, which results in a trading amount for that market
participant determined in accordance with a specific formula in the
code.
Spot price The price for electricity in a trading interval at a regional reference
node or a connection point.
Spot price forecast A forecast of the spot price.
78
IEEE
Standby demand The demand specified by contractual arrangement with a customer to
provide power and energy to that customer as a secondary source or
backup for the outage of the customer's primary source. Standby
demand is usually intended to be used infrequently by any one
customer.
Stranded fixed costs Costs associated with investments or other unavoidable fixed costs
made to provide service to a (normally, wholesale) customer which
has ceased to be a customer before the end of the useful life of such
investments. Such costs remain stranded fixed costs only until such
time as additional customer load is acquired to render the investments
and other unavoidable fixed costs in question necessary to provide
service to the then aggregate load of the utility and the additional
customer load pays a sufficiently high price to replace the revenue
lost from the customer which ceased to be a customer.
Stranded investment Refers to the cost of existing equipment or facilities that are no longer
needed after one or more customers stop buying power from the local
utility and instead choose to purchase power from outside sources
(major concern with retail wheeling and transmission access).
Stranded investment costs Costs associated with investments made to provide service to a
(normally, wholesale) customer which has ceased to be a customer
before the end of the useful life of such investments net of any
operational savings accruing to remaining customers as a result of the
customers cessation of service. Such costs remain stranded
investment costs only until such time as additional customer load is
acquired to render the investment in question necessary to provide
service to the then aggregate load of the utility and the additional
customer load pays a sufficiently high price to replace the revenue
lost from the customer which ceased to be a customer.
Sunk cost In economics, a sunk cost is a cost that has already been incurred, and
therefore cannot be avoided by any strategy going forward.
Tariff A document, approved by the responsible, regulatory agency, listing

the terms and conditions, including a schedule of prices, under which
utility services will be provided.
79
NECA
Transaction A spot market transaction, reallocation transaction, short term
forward market transaction, inter-regional hedge transaction or any
other transaction either in the market or to which National Electricity
Market Management Company Limited (NEMMCO) is a party.
IEEE
Transmission access The ability of third parties to make use of existing transmission
facilities owned by others (wheeling utility) to deliver power to the
customers of the wheeling utility.
Transmission provider The public utility (or its designated agent) that owns or controls
facilities used for the transmission of electric energy in interstate
commerce and provides transmission service.
NECA
Transmission provider Any member possessing a right to transmission capacity either
through ownership or contractual arrangements.
Transmission requester Any member or members requesting transmission service from a

transmission provider.
Uncontrollable force Any cause beyond the control of the member affected, including, but
not limited to, failure of or threat of failure of facilities, flood,
earthquake, storm, fire, pestilence, lightning or other natural
catastrophes, epidemic, famine, war, riot, civil disturbance or
disobedience, labor dispute, strike, labor or material shortage,
sabotage, government priorities, restraint by court order or public
authority, and action or non-action by or inability to obtain necessary
authorizations or approvals from any governmental agency or
authority which, by exercise of prudent utility practice, due diligence
and foresight, such member could not reasonably have been expected
to avoid and which, by exercise of due diligence, it has been unable to
overcome.
80
SECTION 5 ENTITIES IN THE ELECTRICITY MARKET
DEFINITION
NECA
Code Change Panel A panel established by National Electricity Code Administrator
(CCP) Limited (NECA) to make recommendations to NECA on suggested
changes to the Code.
Code participant A person being:

(a) National Electricity Market Management Company Limited
(NEMMCO) or
(b)
a person who is registered with NEMMCO including a network
service provider, a system operator, a special participant, a generator,
a customer and a market participant.
Code participant agent An agent of a code participant appointed to coordinate operations of

one or more of its facilities on its behalf.
NERC
Connecting utility The utility to which the non-utility generator is connected. (Often
referred to as the “host utility”).
Control area utility The utility operating the control area in which the non-utility
generator is located.
NECA A person who:

Customer 1. engages in the activity of purchasing electricity supplied through
a transmission on distribution system; and
2. registers with National Electricity Market Management Company
Limited (NEMMCO) as a Customer.
Distribution customer A customer, distribution network service provider, non-registered

customer and a franchise customer having a connection point with a
Distribution network owner The owner of any part of a distribution network.
Distribution network service A person who engages in the activity of owning, controlling, or
Provider operating a distribution system.
Distribution network user A distribution customer or an embedded generator.
81
Distribution system A person who is responsible under this code or otherwise for the
Operator management of any portion of a distribution system of for directing
its operations during power system emergencies and who is registered
with National Electricity Market Management Company Limited
(NEMMCO).
IEEE
Distribution utility The regulated electric utility entity that constructs and maintains the
distribution wires connecting the transmission grid to the final
customer. It also performs other services such as aggregating
customers, purchasing power supply and transmission services for
customers, billing customers and reimbursing suppliers, and offering
other regulated or non-regulated energy services to retail customers.
Electric utility Any person or state agency with a franchise (including any
municipality) which sells electric energy to end-use customers this
term includes the Tennessee Valley Authority, but does not include
other Federal power marketing agencies (from EP Act).
NERC
Electric utility Any entity owning and operating and electric system for the purposes
of sale or resale to the end users.
NECA
Embedded generator A generator who owns, operates or controls an embedded generating
unit.
NERC
Existing facilities Those transmission facilities owned by a member that are in service
or transmission capacity under contract to a member using
transmission facilities that are in service.
NECA A customer which has classified its electricity purchase at any

First-tier customer connection point as a first tier load.
Franchise customer A person who does not meet its local jurisdiction requirements to
make it eligible to register with National Electricity Market
Management Company Limited (NEMMCO) as a customer for a load
and who must continue to purchase electricity for that load from its
local retailer.
Generator A person who engages in the activity of owning, controlling, or

operating a generating system that supplies electricity to, or who
otherwise supplies electricity to, a transmission or distribution system
and who is registered with National Electricity Market Management
Company Limited (NEMMCO).
82
Jurisdictional regulator The person authorised by a participating jurisdiction to regulate
distribution service prices in that jurisdiction.
Incremental facilities Transmission facilities, other than existing facilities, that are
reasonably required to satisfy a request for transmission service from
a transmission user.
Intending customer A customer which has classified any load as an intending load.
Interruptible customer A utility customer that, by contract or tariff, can be shed by the utility
before shedding other customers.
IEEE
Investor-owned utility A stockholder owned company that provides utility services.
(IOU)
NECA
Local network service Within a local area, the network service provider to which that
Provider geographical area has been allocated by the jurisdictional regulator.
Participating jurisdiction A jurisdiction that is a “participating jurisdiction” under the national

electricity law.
Local retailer In relation to a local area, the customer who is:

1. a business unit or related body corporate of the relevant local
network service provider; or
2. responsible under the laws of the relevant participating
jurisdiction for supply of electricity to franchise customers in that
local area; or
3. if neither 1 or 2 is applicable, such other customer as National
Electricity Market Management Company Limited (NEMMCO)
may determine
Market customer A customer who has classified any of its loads as a market load and
who is also registered with National Electricity Market Management
Market generator A generator who has classified at least one generating unit as a.
Market participant A person who has registered with National Electricity Market
Management Company Limited (NEMMCO) as a market generator, a
trader or a market customer.
83
IEEE
Marketer An agent for generation projects who markets power on behalf of the
generator. The marketer may also arrange transmission, firming or
other ancillary services as needed. Though a marketer may perform
many of the same functions as a broker, the difference is that a
marketer represents the generator while a broker acts as a middleman.
NECA
Metering provider A person who provides the facilities and service to of metering and is
registered with National Electricity Market Management Company
Limited (NEMMCO).
IEEE
Native load customers The wholesale and retail customers on whose behalf the transmission
provider, by statute, franchise, regulatory requirements, or contract,
has undertaken an obligation to construct and operate the
transmission provider’s system to meet the reliable electric needs of
such customers.
NECA
Network owner The owner of a transmission network or a distribution network.
Network service provider A person who engages in the activity of owning, controlling or
operating a transmission or distribution system and who is registered
in that capacity with National Electricity Market Management
Non-market generator A generator who has classified a generating unit as a non-market

generating unit.
Non-registered A person who:

Customer 1. purchases electricity through a connection point with the national
grid than from the spot market; and
2. is eligible to register as a customer and classify the load described
in (1) a first-tier load or a second-tier load, but has not so
classified the load.
Non-registered A person who:

second-tier customer 1. purchases electricity through a connection point with the national
grid a person other than the local retailer or the spot market; and
2. has not classified that load as a second-tier load as part of the
registration process.
Non-utility generator Facility for generating electricity that is not exclusively owned by an
electric utility and that operates connected to an electric utility
system.
84
IEEE
Non-utility generators Facilities for generating electricity that are not owned exclusively by
(NUGs) an electric utility and which operate connected to an electric utility
system. Included are qualifying cogeneration and independent power
production facilities under the Public Utility Regulatory Policies Act
(PURPA) of 1978 (referred to as qualifying facilities, Qfs) facilities
installed under the competitive bidding process, and other
independent power producers (IPPs) that operate connected to the
electric utility system.
Obligation to serve The obligation of a utility to provide electric service to any customer
who seeks that service, and is willing to pay the rates set for that
service. Traditionally, utilities have assumed the obligation to serve in
return for an exclusive monopoly franchise.
NERC
Party A buyer, producer, or wheeler of electricity in an interchange
agreement or contract.
Power pool Two or more companies operating together in an integrated manner to

achieve certain mutual benefits.
IEEE
Provider of last resort A legal obligation (traditionally given to utilities) to provide service
to a customer where competitors have decided they do not want that
customer’s business.
Purchasing utility The utility that is purchasing electrical energy or capacity from
another utility or non-utility generator.
Receiving party The entity receiving the capacity and/or energy transmitted by the
transmission provider to point(s) of delivery.
Regional transmission group A voluntary organization of transmission owners, transmission users

(RTG) and other entities formed to efficiently coordinate transmission
planning (and expansion), operation and use on a regional (and
interregional) basis.
NECA
Reliability panel A panel established by National Electricity Code Administrator
Limited (NECA) to monitor, review and report on the performance of
the market in terms of reliability of the power system.
Scheduled generator A generator which has classified any generating unit as a scheduled
generating unit.
Second-tier customer A customer which has classified any load as a second tier load.
Special participant A system operator or a distribution system operator.

85
Subregional transmission Voluntary subregional associations involving members organized to
group. exchange information, promote transmission access and coordinate
local transmission planning in subregions of the Western
Interconnection.
A person whom National Electricity Market Management Company

System operator Limited (NEMMCO) has appointed as its agent to carry out some or
all of NEMMCO’s rights and obligations under the code and who is
registered as a system operator with NEMMCO.
A person who has registered with National Electricity Market

Trader Management Company Limited (NEMMCO) and who trades in
financial contracts through the market.
Transmission customer A customer, non-registered customer or distribution network service

provider having a connection point with a transmission network.
Transmission network owner The owner of a transmission network.
Transmission network A person who engages in the activity of owning, controlling, or

service provider operating a transmission system.
Transmission network user A transmission customer, a generator whose generating unit is

directly connected to the transmission network or a network service
provider whose network is connected to the transmission network.
Transmitting member Any member possessing a right to existing firm transmission capacity
either through ownership or contractual arrangements.
IEEE
Transmitting utility A regulated entity which owns, and may construct and maintain,
wires used to transmit wholesale power. It may or may not handle the
power dispatch and coordination functions. It is regulated to provide
non-discriminatory connections, comparable service and cost
recovery. According to the EPAct, any electric utility, qualifying
cogeneration facility, qualifying small power production facility, or
Federal power marketing agency which owns or operates electric
power transmission facilities which are used for the sale of electric
energy at wholesale.
86
Utility A corporation, person, agency, authority or other legal entity or
instrumentality that owns and/or operates facilities for the generation,
transmission, distribution, and/or sale of electric energy primarily for
use by the public.
NERC
Wheeling utility A utility providing transmission service for a non-utility generator.
IEEE
Wholesale competition A system whereby a distributor of power would have the option to
buy its power from a variety of power producers, and the power
producers would be able to compete to sell their power to a variety of
distribution companies.
Wholesale power market The purchase and sale of electricity from generators to resellers along
with the ancillary services needed to maintain reliability and power
quality at the transmission level.
87
SECTION 6 ELECTRICAL PLANT - PRIMARY
DEFINITION
NECA
Air break A switch for connecting or disconnecting lines primarily of distribution
voltages. May or may not be able to disconnect loaded circuits.
Breaker, circuit breaker Equipment used to connect and disconnect lines, generators,
transformers and other primary plant both under normal and fault
conditions. The extinguishment of the arc caused when switching high
voltage plant may be aided by air, oil or sulphur hexafluoride.
IEEE
Bus A conductor or a group of conductors that serve as a common
connection for two or more electric circuits within a station.
NECA
Busbar A common connection point in a power station switchyard or a
transmission network substation.
Capacitor bank Electrical equipment used to generate reactive power and therefore
support voltage levels on distribution and transmission lines in periods
of high load.
88
IEEE
Circuit breaker A switching device capable of making, carrying and breaking currents
under normal circuit conditions and also making, carrying for a
specified time, and breaking currents under specified abnormal
conditions such as those of a short circuit.
NECA
Current transformer A transformer for use with meters and/or protection devices in which
[CT] the current in the secondary winding is, within prescribed error limits,
proportional to and in phase with the current in the primary winding.
IEEE
Disconnect switch A mechanical switching device used for changing the connections in a
circuit or for isolating a circuit or equipment from a voltage source.
NECA
Generator, generating unit The actual generator of electricity and all the related equipment
essential to its functioning as a singe entity.
Instrument transformer Either a current transformer [CT] or a voltage transformer [VT] used
for measuring, metering and/or protection purposes.
Isolator (switchgear) A switch for isolating primary high voltage plant for safety and
maintenance. Cannot be used to connect or disconnect loaded circuits.
Reactive plant Plant which is normally specifically provided to be capable of

providing or absorbing reactive power.
Reactor A device, similar to a transformer, specifically arranged to be

connected into the transmission system during periods of low load
demand or low reactive power demand to counteract the natural
capacitive effects of long transmission lines in generating excess
reactive power and so correct any transmission voltage effects during
these periods.
Reclose The automatic closing of a circuit breaker following its opening

because the detection of a fault. A reclose is initiated after a preset
delay on the presumption that the fault was transient.
89
Recloser A line mounted circuit breaker used in distribution systems.
IEEE
Shunt capacitors Static electrical devices which may be connected to the power system
to provide a source for reactive power.
NECA
Shunt capacitor A type of plant connected to a network to generate reactive power.
Shunt reactor A type of plant connected to a network to absorb reactive power.
Static VAR compensator A device specifically provided on a network to provide the ability to
generate and absorb reactive power and to respond automatically and
rapidly to voltage fluctuations or voltage instability arising from a
disturbance or disruption on the transmission network.
IEEE
Static VAR compensator Device which primary purpose is to provide a source of controlled
(SVC) reactive power by using high speed switching devices connected to
reactors and capacitors.
Static VAR system A system of static capacitors and reactors using solid state electrical
controls to provide a rapidly controllable source of reactive power.
NECA
Synchronous condenser Plant, similar in construction to a generating unit of the synchronous
generator category, which operates at the equivalent speed of the
frequency of the power system, specifically provided to generate or
absorb reactive power through the adjustment of rotor current.
90
IEEE
Synchronous condenser A machine which is designed to generate reactive power and to operate
at synchronous speed.
NECA
Synchronous generator, The alternating current generators of most thermal and hydro (water)
synchronous generating unit driven power turbines which operate at the equivalent speed of the
frequency of the power system in its normal operating state.
Transformer A plant or device that reduces or increases the voltage of alternating

current.
Tap-changing transformer, A transformer with the capability to allow internal adjustment of output
on-load tap-changing voltages which can be automatically or manually initiated and which is
transformer [OLTC] used as a major component in the control of the voltage of the
transmission and distribution networks in conjunction with the
operation of reactive plant.
Transformer tap position Where a tap changer is fitted to a transformer, each tap position
represents a change in voltage ratio of the transformer which can be
manually or automatically adjusted to change the transformer output
voltage. The tap position is used as a reference for the output voltage of
the transformer.
Voltage transformer A transformer for use with meters and/or protection devices in which
[VT] the voltage across the secondary terminals is, within prescribed error
limits, proportional to and in phase with the voltage across the primary
terminals.
Winding The copper coils of a transformer through which the electrical current
flows.
91
SECTION 7 ELECTRICAL PLANT - SECONDARY
DEFINITION
NECA
Automatic generation A control system to manage the real time operating characteristics of
control system [AGC] generating units connected to a power system as dictated by a chosen
operating mode and input parameters measured remotely.
Automatic meter reading A system for reading a meter, preparing and conditioning the data and
transmitting the accumulated information to a central data accumulation
device.
Automatic reclose The equipment which automatically recloses circuit breaker(s) of the
equipment relevant transmission line or distribution line following their opening as
a result of the detection of a fault in the line.
Back-up protection Protection which is intended to operate when the main protection, or
associated circuit breaker, fails.
Circuit breaker fail That part of the protection system that protects electrical facilities
against the non-operation of a circuit breaker that is required to open.
Control system Means of monitoring and controlling the operation of the power system
or equipment including generating units connected to a transmission or
Data collection system All equipment and arrangements that lie between the metering database
and the point where the metering data enters a telecommunications
network.
Data logger A device that collects energy data, packages it into 30 minute intervals
(or sub-multiples), holds a minimum of 35 days of data, and is capable
of being accessed electronically via a data collection system.
Differential protection A protection system that analyses the differential sum of (typically) the
System currents coming into the protected area.
Distance impedance A protection system that analyses measured electrical parameters to

Protection system assess the distance to the fault and the acts in accordance with present
decisions.
Fuse An inline fusible link used in distribution systems to isolate faulty line
sections in case of a fault.
92
Grading The process of designing and/or setting serially arrayed protection
devices such that operations upon detection of a fault, are constrained to
disconnecting the smallest amount of the system.
Meter A device which measures the production or consumption of electrical

energy.
Metering Recording the production or consumption of electrical energy.
Metering data The data obtained from a metering installation, the processed data or
substituted data.
Metering database A database of metering data.
Metering installation The assembly of components between the metering point(s) and the
point of connection to a telecommunications network.
Metering point The point of physical connection of the device measuring the current in
the power conductor.
Microwave link A radiocommunications link between two fixed locations, provided in

the electricity supply industry for the purpose of providing operational
telecommunications.
Operational control Equipment installed to enable monitoring of status and data of a facility
system [OCS] from a control centre.
Operational Telecommunications services provided for the direct support of power

telecommunications system operation, usually of a higher order of reliability than available
from the public telecommunications network.
Optical fibre cable A communications cable with the cores(s) constructed from glass fibres
suitable for transmitting modulated light.
Overcurrent protection A protection system that measures current flow in a transmission or

distribution line and assesses a fault to exist if the current exceeds a
preset threshold.
93
IEEE
Phase Angle Regulator An electrical device which has the ability within certain physical limits
to control power flow through a particular component of the
NECA
Pilot cable A communications cable provided in the electricity supply industry for
the purpose of providing operational telecommunications.
Traditionally pilot cables used copper conductors, but more recently they
have used optical fibres.
Protection signalling The use of a telecommunications circuit to permit signals to be

transmitted between the two ends of a power line to enable the
protection equipment to intercommunicate and enhance the protection
process.
Powerline carrier [plc] The technique of superimposing limited telecomunications facilities on a

power transmission line.
Protection system The electrical and mechanical devices (from measured process variables
to protective action system input terminals) involved in generating those
signals associated with the protective functions.
Protection system A system, which includes equipment, used to protect electrical facilities
from damage due to an electrical or mechanical fault or due to certain
conditions of the power system.
Remote control Equipment used to control the operation of elements of a power station
equipment or substation from a control centre.
Remote monitoring The terminating equipment installed at the location remote from the
equipment control centre to convert the collected data into a form suitable for
transmission over a telecommunications network.
94
IEEE
Relay A device which detects abnormal conditions on a power system and
automatically initiates control action to protect endangered equipment,
often by activating other devices which will separate the endangered
equipment from the rest of the system.
Remote terminal unit A remotely located station wherein units of switchgear or other
[RTU] equipment are controlled by supervisory control or from which
supervisory control indications or selected telemeter readings are
obtained.
NECA
Reactive energy meter A meter used to measure reactive energy.
Revenue meter The meter that is used for obtaining metering data for assessing
settlement for energy purchased/sold.
NERC
Supervisory control and A system or remote control and telemetry used to monitor an control
data acquisition [SCADA] electric system.
IEEE
Supervisory control and Telecommunications system by which data from the electrical system is
data acquisition (SCADA) transmitted to the control center, and commands from the control center
are transmitted to the various power system facilities.
NECA
Unit protection Protection of specific component of the power system where the
measurements for parameter assessment can be made at the limits of the
equipment on either side.
95
SECTION 8 ELECTRICAL PLANT – GENERAL
DEFINITION
IEEE
Flexible alternating current A technology that involves the application of high-speed power
transmission system electronic controllers based on a variety of thyristor devices which give
(FACTS) the ability to control power flows on transmission routes, and allow
secure loading of transmission lines to their full thermal capacity.
NECA
Inverter Electrical apparatus to change DC into AC.
IEEE
Power system stabilizer An element or group of elements that operate to increase stability of
synchronous machines during the period preceding and following a
disturbance as well during the disturbance.
NECA
Rectifier Electrical apparatus to change AC into DC.
Secondary equipment, Those assets of a utility which do not carry the energy being traded, but
secondary plant which are required for control, protection or operation of assets which
carry such energy.
96

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198

Section 1 Electrical Quantities

Section 2 Electricity Systems

Section 3 System Operations

Section 4 Electricity Market

Section 5 Entities in the Electricity Market

Section 1 Electrical Quantities

Section 2 Electricity Systems

Section 3 System Operations

Section 4 Electricity Market

Section 5 Entities in the Electricity Market

Section 6 Electrical Plant – Primary

Section 7 Electrical Plant – Secondary

Section 8 Electrical Plant – General

• North American Electric Reliability Council (NERC)—Glossary of Terms, August 1996

Apparent (phaser) power S=V•I

Apparent power For sinusoidal quantities in either singlephase or polyphase

Reactive power For sinusoidal quantities in a two-wire circuit, reactive power is

Available transmission That amount of transmission capacity available to a transmission

Baseload capacity Capacity used to serve an essentially constant level of customer

Capability When referring to generation, capability is synonymous with capacity

Coincident versus The peak demands of individual electric utilities in a region or

Contractual path The physical transmission path(s) between interconnected utility

Control area An area comprised of an electric system or systems, bounded by

Distribution The function of distribution is the transport of electrical energy from

Generation The function of generation is the conversion of primary energy into

Load The amount of electric power required or delivered at any specified

Neighbouring systems Adjacent systems interconnected across a common border.

Security The ability of the electric system to withstand sudden disturbances

Supply Sale of electricity to an end-user.

Transmission The function of transmission is the transfer of electrical energy in bulk

Generation reserves Generation capacity in excess of peak demand.

Regulating capacity Generating capacity under automatic control capable of maintaining

Scheduling/Schedule An agreement between the system operations of two companies, which

Wheeling A term commonly used to describe the provision of transmission

Commercial information Information that can be used in the marketplace.

Cost based pricing Transmission pricing based upon cost elements.

First price auctions Payment according to the bid price.

Franchises Concessions granted by states or municipalities ensuring the delineation

Incremental additions Additions, improvements or capital betterments (including

Incremental costs of Long-term expansion costs.

Power exchange A procedure through which generators and customers participate in

Resource planning Planning of generating as well as demand side management resources to

Rolled in costs/pricing Average costs (e.g. per MW of transmission capacity) of all

Sham wholesale A transaction in which a third party supposedly purchases electric

Vertically integrated An owner and operator of a power system including generation,

Corporatisation A procedure to unbundle without forming separate companies.

Holding company Power pool formed by subsidiaries of a holding company.

Independent power See Non–utility Generator.

License A license is an authorization issued by a regulator to a company

Regulator-Regulation Regulators have the responsibility to implement laws established by

Active power (watts) The rate at which active energy is transferred.

Alternating current The flow of electrons in an electrical conductor.

Back-up power Power provided by contract to a customer when that customer’s

Baseload The minimum amount of electric power delivered or required over

Emergency energy Electrical energy purchased by a member system whenever an

Energy consumed Power (kW) x Time (h).

Frequency deviation A departure from scheduled frequency.