These terms are used in the letter and proposed questions that we recommend be asked in the OIR:
Ancillary Services: Generation, storage and generation-like services that complement kWh generation while supporting grid stability, including, but not limited to "reliability" services such as voltage support, reactive power, black start, emergency back-up, spinning and non-spinning reserve, power quality, and generation service to congested areas.
Central Station Generation: Generation or storage devices providing energy and ancillary services injected into the transmission system.
Congestion: The condition that exists in a portion of the T&D system where T&D capacity is inadequate to accommodate serving downstream peak load with upstream generation. Congestion may be relieved by a redispatch of upstream generation, by downstream generation or storage, by DSM or by expanding T&D.
Distributed Generation (DG):
Generation, generation-like and storage devices that provide energy or ancillary services that are connected to the distribution level of the T&D system. Potential DG applications include:DG Benefits: See "Impacts of DG."
Distribution: (aka Retail Transmission) System: That part of the T&D grid which is under state, rather than FERC jurisdiction. It includes local transmission (which does not provide interstate wheeling service) and radial feeder lines.
DSM: Demand-Side Management. Customer-side measures to reduce or shift load. Includes dispatchable and non-dispatchable load management, interruptible energy service, conservation and energy efficiency measures.
ESP: Energy Service Provider. A company that sells electricity, ancillary services or other services to end use customers from either the system side or the customer side of the meter. Includes "energy service companies (ESCOs)." May include utility affiliates. Services on the customer side of the meter may include billing, energy auditing, load management, self-generation or cogeneration.
Externalities: Positive or negative non-market effects of a transaction on those who are not parties to the transaction, and who neither pay for their benefits nor receive compensation for being harmed. "Externalities" often refers to effects on society or the environment that are not accounted for in the price of goods and services. See also "impacts of DG" and "ancillary services."
Geographic Market Power: The ability of the owner of a natural monopoly to plan or operate the monopoly service in a manner that discourages energy, restricts access, or raises prices with respect to a geographic area.
Grid Users: Parties that use the grid as a common carrier, including, but not limited to, ESPs, end use customers, generators, ancillary service providers, the Power Exchange, other scheduling coordinators, the UDC (as retail seller), etc.
Impacts of DG: Some DG may have indirect economic effects on other market participants. The positive and negative impacts of DGs may include, but are not limited to, congestion or decongestion impacts on upstream generators which may also defer, avoid or necessitate T&D expansion. DG may also reduce line losses for upstream generators, increase or decrease T&D maintenance costs to the UDC or others, and increase the supply or demand for ancillary services such as voltage support or stability. If unbundled or otherwise internalized, such impacts directly effect the users of the T&D grid. If bundled and not otherwise internalized, such impacts affect the UDC directly, and grid users indirectly. See also "congestion," "T&D deferral" and "ancillary services."
ISO: Independent system operator. An FERC-jurisdictional entity that plans and operates a transmission system but is not its owner, and is neither a generator nor a service provider.
IDO: Independent distribution operator. A hypothetical state-jurisdictional entity that plans and operates a distribution system but is not its owner, and is neither a generator nor a service provider.
Transmission (aka Wholesale Transmission) System: That part of the T&D grid which provides interstate wheeling service and is therefore under FERC jurisdiction.
T&D: For purposes of this document, the transmission and/or distribution system.
T&D Deferral: Measures by the other than expanding T*&D capacity that relieve congestion. See "congestion".
UDC: Utility distribution company. The owner of the T&D system. May also be a retail electricity provider.
Unbundling: The separation of competitive services from monopoly services in function and in rates.
Underbuilt T&D: See "congestion".
Vertical Market Power: The ability of a owner of a natural monopoly to plan or operate the monopoly service in a manner that discourages entry, restricts competition or raises prices within a vertically adjacent market.
Wires: Wires Company. A hypothetical state-jurisdiction entity that owns, plans and operates a distribution system, and is neither a generator nor a service provider.
World Leaders: To our knowledge, no regulatory commission in the world has initiated a Rulemaking in the role of UDCs in DG at the dawn of retail competition. If the Commission agrees to open an OIR into the UDC role in DG, California can once again lead the way.
JXM/KTT/RC/MS/ERW/KD/jxm
Impact 2000 House