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Glossary
A B C
D E F G
H I J K L M
N O P Q
R S T U V W
X Y Z
A
Abandonment
In some cases, facilities may be abandoned, such as when pipelines
get old and the facilities need upgrading or need to be removed
and replaced with a new pipeline. Natural gas pipeline companies
must get Commission approval before abandoning facilities or discontinuing
services that are subject to FERC jurisdiction.
Agenda
See Sunshine Notice.
B
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BTU
A British Thermal Unit (BTU) is a measure of the heating value
of a fuel. It is the amount of heat energy required to raise the
temperature of one pound of water one degree Fahrenheit.
C
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Certificate of Public Convenience and Necessity
A certificate issued by FERC that allows the recipient to engage
in the transportation and/or sale for resale of natural gas in
interstate commerce or to acquire and operate facilities needed
to accomplish this.
Cogenerator
A generating facility that produces electricity and another form
of useful thermal energy (such as heat or steam), that is used
for industrial, commercial, heating, or cooling purposes.
Compressor Station
A facility that is used to compress natural gas in order to create
additional pressure to increase the amount of gas a pipeline can
hold, help move it through a pipeline, or to move it into or from
storage.
Cost-Based Rates
A ratemaking concept used for the design and development of rate
schedules to ensure that the filed rate schedules recover only
the cost of providing the service.
Critical Energy Infrastructure Information (CEII)
CEII is information concerning proposed or existing critical infrastructure
(physical or virtual) that:
- Relates to the production, generation, transmission or
distribution of energy;
- Could be useful to a person planning an attack on critical
infrastructure;
- Is exempt from mandatory disclosure under the Freedom of
Information Act; and
- Gives strategic information beyond the location of the
critical infrastructure.
D
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Dismissal
The Commission can dismiss a proceeding or issue a partial dismissal
through a Commission order. If a proceeding is dismissed without
prejudice, the applicant may make a revised filing for the case.
If the proceeding is dismissed with prejudice, the applicant must
file a request for rehearing.
Distribution
For natural gas - the act of distributing gas from the city gate
or plant to the customer. For electric - the act of distributing
electric power using low voltage transmission lines that deliver
power to retail customers.
Docket
A formal proceeding before the Commission. Docket numbers are
assigned to individual proceedings.
E
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Effective Date
The date on which a rate schedule or tariff sheet becomes legally
effective.
Electric Utilities
All enterprises engaged in the production and/or distribution
of electricity for use by the public, including investor-owned
electric utility companies; cooperatively-owned electric utilities;
government-owned electric utilities (municipal systems, federal
agencies, state projects, and public power districts).
Eminent Domain
Congress has established that natural gas certificates and hydropower
licenses issued by FERC also convey the power of eminent domain.
Eminent domain is used as a last resort if a landowner and the
project proponent cannot reach agreement on compensation for use
or purchase of property required for the project. The project
proponent is still required to compensate the landowner for the
use or purchase of the property, and for any damages incurred
during construction. However, the level of compensation would
be determined by a court according to state law.
Energy
Glossary 
Energy terms and definitions used in Energy Information Administration
reports and by the energy industry.
Environmental Assessment
An Environmental Assessment (EA) evaluates the consequences of
a proposed action on the environment and recommends measures to
minimize any potentially adverse affects. An EA is prepared when
the environmental scoping process has determined that the project
would not significantly affect the quality of the human environment.
Environmental Impact Statement
The statement required of federal agencies by Section 102 (C)
of the National Environmental Policy Act of 1969, for major Federal
actions that may significantly affect the quality of the human
environment.
Evaluative Resolution
Someone is determining who is right or wrong during dispute resolution.
F
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Federal Rates
Rates that apply to the marketing of wholesale power and transmission
services provided by government owned or leased facilities to
non-Federal customers. This is done through FERC-approved rate
schedules or contracts at revenue levels sufficient to repay the
Federal charges incurred in providing these services.
G
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Gathering Line
Pipelines, generally small in diameter, used to transport oil
or gas from the well to a processing facility or a mainline pipeline.
Gasification
A process that converts liquefied natural gas (LNG) from a liquid
back to a gas. This is done by increasing the temperature and
decreasing the pressure of the LNG.
Generation
The act of producing electrical energy from other forms of energy
(such as thermal, mechanical, chemical or nuclear); also, the
amount of electric energy produced, usually expressed in kilowatthours
(Kwh) or megawatthours (MWh).
H
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Hydropower
Takes the energy of running water and converts it to electricity.
Hydropower Exemption
Small hydropower projects (less than 5 megawatts) that are exempted
from the Commission's licensing requirements. Exemptions are granted
in perpetuity.
Hydropower License (Major)
A major license issued by the Commission, authorizes the licensee
to construct and operate a new project, or continue to operate
an existing project, which is capable of generating more than
5 megawatts. The license term is from 30 to 50 years.
Hydropower License (Minor)
A minor license issued by the Commission, authorizes the licensee
to construct and operate a new project, operate an existing project,
which is capable of generating less than 5 megawatts. The license
term is typically 30 years.
Hydropower Re-license
A major or minor license issued by the Commission that authorizes
the licensee to receive a new license term for an existing licensed
project. The new license term may be from 30 to 50 years.
I
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Independent System Operator
An independent, Federally regulated entity established to coordinate
regional transmission in a non-discriminatory manner and ensure
the safety and reliability of the electric system.
Independent Power Producer
A corporation, person, agency, authority, or other legal entity
or instrumentality that owns or operates facilities for the generation
of electricity for use primarily by the public, and that is not
an electric utility.
Interstate
Sales where transportation of natural gas, oil, or electricity
crosses state boundaries. Interstate sales are subject to Commission
jurisdiction.
Interstate Commerce
An interchange of goods or commodities which involves transportation
between states.
Intervenor
An intervenor formally participates in a Commission proceeding
by filing a request to intervene. Intervenors are able to file
briefs, appear at hearings, and be heard by the courts if they
choose to appeal the Commission's final ruling.
Intrastate
Sales where transportation of natural gas, oil, or electricity
occur within a single state and do not cross state boundaries.
Intrastate sales are not subject to Commission jurisdiction.
L
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Liquefied Natural Gas (LNG)
Reducing the temperature of natural gas to minus 259 degrees at
atmospheric pressure will convert the gas into a liquid. Its volume
as a liquid is about 1/600 compared to its volume as a gas.
Local Distribution Company
Any firm, other than a natural gas pipeline, engaged in the transportation
or local distribution of natural gas and its sale to customers
that will consume the gas.
M
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Market Power
The ability of any market trader with a large market share to
significantly control or affect price by withholding production
from the market, limiting service availability, or reducing purchases.
MCF
A MCF is equivalent to 1,000 cubic feet (of gas).
MMCF
A MMCF is equivalent to 1,000,000 cubic feet (of gas), or 1,000
Mcf.
Metering Facility
A facility that measures and registers the amount and direction
of natural gas or electricity that flows through the facility.
N
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Natural Gas
A naturally occurring combustible mixture of gases recovered from
the earth from wells. It is composed predominantly of methane,
but contains other light hydrocarbons and impurities.
Negotiated Rate
An alternative to traditional cost-of-service rates, where a rate
for a service varies from a pipeline's otherwise applicable tariff
and is mutually agreed upon by a pipeline and its customer. At
the time a customer is considering a negotiated rate, a recourse
rate that is on file in the pipeline's tariff must also be available
to that customer. Also known as negotiated/recourse rates.
Non-evaluative Resolution
No one is deciding (evaluating the evidence of) a case for the
disputants during dispute resolution.
Non-Public Documents
Includes information location about proposed or existing critical
energy infrastructure information (CEII), and privileged information,
which is usually confidential business information or cultural
resource reports.
Notice
The Commission issues public notices for a variety of purposes,
such as Commission meeting, applications for energy projects,
rate cases, technical conferences, and proposed rule makings.
O
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Open Access Order No. 888 requires utilities
to allow others to use their transmission and distribution facilities,
to move bulk power from one point to another on a nondiscriminatory
basis for a cost-based fee.
P
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Pipeline Certificate See Certificate of Public
Convenience and Necessity
Power Exchange
An entity providing a competitive spot market for electric power
through day- and/or hour-ahead auction of generation and demand
bids.
Power Marketer
Business entities engaged in buying and selling electricity. Power
marketers do not usually own generating or transmission facilities.
Power marketers, as opposed to brokers, take ownership of the
electricity and are involved in interstate trade. These entities
must file with the Commission to obtain status as a power marketer.
Power Pool
An association of two or more interconnected electric systems
having an agreement to coordinate operations and planning for
improved reliability and efficiencies.
Powerhouse
A structure at a hydroelectric plant site that contains the turbine
and generator.
Public Documents
Public has unrestricted access to these documents, which includes:
- Applications
- Forms
- Publications
- Orders
- Opinions
- Decisions
- Rulemakings
- Financial and statistical reports
- Administrative staff manuals
- Policy statements
- Frequently requested FOIA-processed records.
Q
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Qualifying Facility
A cogeneration or small power production facility that meets certain
ownership, operating, and efficiency criteria established by the
Commission pursuant to the Public Utility Regulatory Policies
Act.
R
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Rate
The authorized charges per unit or level of consumption for a
specified time period for any of the classes of utility services
provided to a customer.
Rate Base
The value of property upon which a utility is permitted to earn
a specified rate of return as established by a regulatory authority.
Rate Case
A proceeding before the Commission that involves the rates to
be charged for a service that is provided by a public utility.
Rate of Return
The ratio (percentage) of profits (or earnings) compared to capital
or assets.
Rate Schedule
The rates, charges, and provisions under which service is supplied
to the designated class of customers.
Recourse Rate
A cost-of-service based rate for natural gas pipeline service
that is on file in a pipeline's tariff and is available to customers
who do not negotiate a rate with the pipeline company. Also see
negotiated rate.
Refund
An amount of money ordered by the Commission to be returned to
wholesale or retail customers after it has been determined that
a rate increase has been excessive or not justified.
Regulations
Rules that implement laws passed by Congress, which give federal
agencies their legal authority to do business.
Request for Rehearing or Appeal
A request of rehearing or appeal is a pleading by any party to
a proceeding before the Commission petitioning the Commission
to reconsider an order in that proceeding. There are statutory
deadlines for filing requests for rehearing.
Retail Sales
Sales made directly to the customer that consumes the energy product.
S
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Sales for Resale
A type of wholesale sales covering energy supplied to other electric
utilities, cooperatives, municipalities, and Federal and state
electric agencies for resale to ultimate consumers.
Scoping
The scoping process is used to solicit public input on potential
issues and whether there is a potential for significant adverse
affects to the human environment from a proposed energy project,
and identify the scope of the Environmental Assessment or Environmental
Impact Statement to be prepared.
Service List
The Commission's Secretary maintains service lists for individual
FERC proceedings. Service lists are restricted to intervenors.
Intervenors on the service list will receive the applicant's filings,
Commission documents related to the case, and materials filed
by other interested parties.
Statutes
The laws passed by Congress that give the Commission its power
to regulate. The Commission must also comply with environmental
statutes when issuing certificates for natural gas pipelines and
licenses for hydroelectric projects, as well as general administrative
statutes.
Storage Facility
Underground storage of natural gas in natural geologic reservoirs
such as depleted oil or gas reservoirs or natural underground
caverns. Gas is transported from producing fields during periods
of low demand, stored in underground storage, and then withdrawn
for distribution during periods of peak demand.
Sunshine Notice
Commonly referred to as the Agenda, the Sunshine Notice is the
legal notice that is required under the Sunshine Act. This Act
states that public notice must be published at least one week
in advance of all meetings where a quorum of the agency officials
will be conducting or deciding official agency business. All Open
Commission meetings have a Sunshine Notice that lists the items
on which FERC will discuss, and take action. The Sunshine Notice
for each Open Commission meeting can be found in the Calendar
of Events.
Suspended Rates
New rates that have been accepted for review by the Commission
but not made effective for a period of time, up to a maximum period
of five months.
T
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Tariff
A compilation of all effective rate schedules of a particular
company or utility. Tariffs include General Terms and Conditions
along with a copy of each form of service agreement.
Transmission
Moving bulk energy products from where they are produced or generated
to distribution lines that carry the energy products to consumers.
W
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Well
An opening in the ground made by drilling, boring, or any other
manner, from which oil or gas (or water) is obtained. Wells may
also be used to inject oil, gas, water, or other fluids into the
ground.
Wellhead
A wellhead is the control equipment which is placed at the top
of the well casing.
Wellhead Price
What it costs to produce natural gas at the wellhead. The wellhead
price does not include any charges for treating, gathering, processing,
transporting, or distributing.
Wheeling
The transmission of electricity by an entity that does not own
or directly use the power it is transmitting.
Wholesale Sales
Sales for resale in bulk power markets, natural gas, and oil.
Working Gas
Gas in an underground storage facility which is available to be
withdrawn and may be sold. This is in contrast to base gas, which
is needed to operate the storage facility, and can't be recovered
during a normal working cycle.
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