Learning Center

obligation to serve: Obligation by a utility to provide planning services for all customers indefinitely, to assure adequate supply of electricity into the future.

off peak: A period of relatively low demand for electrical energy, such as the middle of the night.

operating year: The 12-month period from August 1 through July 31.

outages: Periods, both planned and unexpected, during which a power-producing facility ceases to provide generation or the transmission of power stops.

Pacific Northwest Coordination Agreement (PNCA): An agreement between federal and non-federal owners of hydro generation on the Columbia River system, which resulted from the Columbia River Treaty. The PNCA governs the release of stored water to obtain the maximum usable energy and directs operations of the major generating facilities as if they belonged to a single owner.

PCBs: Synthetic chemicals (polychlorinated biphenyls), manufactured from 1929 to 1977, found in electrical equipment, such as voltage regulators and switches, and used to cool electrical capacitors and transformers. The manufacture of PCBs was banned in 1979, but there is still a great deal of PCB-contaminated equipment requiring disposal by utilities.

peak/energy exchange: Exchange of peaking capacity for off-peak energy between two (or more) systems producing electrical energy.

peak load: The maximum electrical load demand in a stated period of time. On a daily basis, peak loads occur at midmorning and in the early evening.

peak load plant: A power plant which is normally operated to provide power during maximum load periods. Examples are combustion turbines and pumped storage hydro.

peaking capability: The maximum peak load that can be supplied by a generating unit, station or system in a stated time period.

performance based ratemaking: Regulated rates based on performance objectives, not on actual costs.

photovoltaic conversion: The process of converting the sun's light energy directly into electric energy.

plant factor: The ratio of the average generation and capacity of a plant during a specified period of time, expressed as a percentage. Sometimes called capacity factor.

pond or pondage: A measure of storage capacity for a run of river hydro plant..

postage stamp rate: A rate for electric power service that does not vary according to distance from the source of the power supply.

power: A term usually meant to imply both capacity and energy.

power exchange: Part of the new framework, a spot price market for electricity.

power factor: The fraction of power actually used by a customer's electrical equipment compared to the total apparent power supplied, usually expressed as a percentage. Power factor indicates how far a customer's electrical equipment causes the electric current delivered at the customer's site to be out of phase with the voltage. This enables a power supplier to calculate a power factor adjustment for customers with large loads.

power marketer: An entity, either independent or a subsidiary of a regulated utility licensed by the Federal Energy Regulatory Commission to buy and sell electricity in the U.S.

power marketing administration: Congress established five federal power marketing administrations (PMAs) to sell hydroelectric power generated by federal dams and power plants. BPA is the oldest of the PMAs.

predation: The act of one creature preying upon another.

preference: A legal directive that gives publicly-owned utilities and cooperatives priority access to federal power.

preference customers: Publicly-owned utilities and non-profit cooperatives which by law have preference over investor-owned systems and industrial customers for the purchase of power from federal projects.

priority firm (PF) rate: The rate for BPA's sales of firm power to preference customers.

provider of last resort: A legal obligation (traditionally required of utilities) to provide services to a customer where competitors have decided they do not want that customer's business.

public purposes costs: These are the costs of conservation programs, renewable energy and environmental expenses -- such as fish restoration -- which are believed by some to be the obligation of utilities.

Public Utility Holding Company Act: A law enacted in 1935 to control the corporate abuses and misconduct of private power's public utility holding companies, such as pyramid schemes, overvaluation of assets and excessive services fees. The National Energy Policy Act of 1992 amended several sections of the act, enabling electric utilities to compete in the independent power market without becoming holding companies.

Public Utility Regulatory Policies Act of 1978 (PURPA): Federal law the requires utilities to purchase electricity from qualified independent power producers at a price that reflects what the utilities would have to pay for the construction of new generating resources (see avoided cost). Portions of the act were designed to encourage the development of small-scale cogeneration and renewable resources.

PUD: Public Utility District (in Washington) or People's Utility District (in Oregon); a governmental corporation established by voters to supply electric or other utility service.

pumped storage plant: A hydroelectric power plant which generates electric energy to meet peak load by using water pumped into a storage reservoir during off-peak periods.