Electricity

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Administrative and general expenses

Administrative and general (A&G) expenses are a sub-category of expenses incurred in the normal day-to-day operations of a business.

Administrative ratemaking

Administrative ratemaking is an alternative to cost-of-service ratemaking where a government agency determines rates rather than setting them in …

Advanced metering infrastructure

An advanced metering infrastructure (AMI) is an integrated system of smart meters, communications networks, and data management systems that ena …

Aggregator

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

Allowance for funds used during construction (AFUDC)

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

Alternating current (AC)

There are two types of electrical current: direct current, or DC, and alternating current, or AC. In an alternating current system, the electron …

Amortization

Amortization is the process of reducing or paying off a financial obligation with regular payments.

Ampacity

Ampacity is commonly used in place of the formal term ampere capacity. Ampacity is the maximum amount of current, in amps, that a particular dev …

Ampere (Amp)

Amperes, commonly called amps, are used to measure electric current.

Anaerobic digestion biopower

A method to convert biomass to gas is the natural process of anaerobic decomposition in a device called an anaerobic digester.

Ancillary services

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

Apparent power

Apparent power is the total amount of power supplied to customers on an electrical system and is quantified in units of volt-amps or VA, kilovol …

Area control error (ACE)

Area control error (ACE) is defined as the instantaneous difference between a balancing authority’s net actual and scheduled interchange with …

Automated meter reading

Automated meter reading or AMR combines the electronic capabilities of newer solid-state meters with communication systems such as radio, phone, …

Automatic generation control (AGC)

In power systems, automatic generation control (AGC) is the control mechanism responsible for maintaining the system frequency to the desired va …

Avoided cost of electricity

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

Balance sheet

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

Balancing account

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

Balancing authority

A balancing authority is the entity responsible for maintaining system frequency for an area comprising a collection of generation, transmission …

Balancing authority area

A balancing authority area comprises a collection of supply resources, transmission, and loads within metered boundaries.