Annual System Peak Demand – Refers to the point in time when average electricity demand is at its highest within a year. It generally occurs during the first heatwave during the summer.
Backwardation – Occurs when the trading in the futures market is lower than the current spot or prompt price.
Basis – The difference between the price of natural gas at the benchmark (Henry Hub in Louisiana) and the price of natural gas at another delivery point located somewhere else in the country.
Basis Plus (NYMEX) – A monthly-priced, variable product with two primary components, including NYMEX (commodity) and Basis (the regional adder).
Behind-the-Meter (BTM) – Refers to energy production and storage systems that happen on-site and directly provide homes and buildings with electricity. Behind-the-Meter is not the same as off-grid.
Billion Cubic Feet (Bcf) – A unit of measurement used to determine the supply and demand flow of natural gas. One Bcf is equal to one million MMBtu.
Blended Hedges – A combination of variable and fixed-rate solutions to achieve an optimal solution to support energy objectives.
British Thermal Unit (Btu) – A tool to measure heat; the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.
Bulk Power System (BPS) – Large interconnected electrical system comprised of transmission and distribution (T&D) facilities and control systems.
Capacity Cost – Rates consumers pay to secure a sufficient supply of electricity on-grid during peak hours of electric consumption.
Capacity Tag – The total kilowatt-hours used by a consumer during peak hour(s) of peak day(s).
Capacity – The maximum output an electricity generator can physically produce, measured in megawatts (MW).
Carbon Neutrality – Carbon neutrality is a state of net-zero carbon dioxide emissions achieved by balancing carbon dioxide emissions with their removal or elimination from society.
Carbon Reduction Strategies – Any process, technique, or management practice that assists in cutting carbon emissions.
Cash Trading – The trading of natural gas during the same month delivery will occur.
Clean Energy – Energy that comes from natural sources (sunlight, wind) that do not pollute the environment when used.
Climate Change – Refers to the long-term shift in temperatures, weather patterns, and environmental conditions.
Close Date – The date that pricing was established for the charts.
Cogeneration (“Co-gen” or CHP) – Combined heat and power (CHP), also known as cogeneration, provides a more efficient use of fuel or heat because otherwise wasted heat from electricity generation is put to productive use. Cogeneration is a highly effective form of energy conversion and when using gas engines.
Commodity – Refers to a variety of energy sources derived mainly from petroleum based products.
Community Solar – Any solar project or purchasing program within a geographic area where benefits of a solar project flow to multiple consumers.
Competitive Energy Service – The retail sale of energy and energy solutions, including electricity, natural gas, or any other competitive service approved by the State Corporation Commission that allow for private negotiation, sale, and purchase of energy supply distinguished separately from the local utility.
Consulting – Guidance and strategies used to decrease energy costs while increasing facility resilience and reducing downtime.
Contango – Occurs when the trading in the futures market is higher than the current spot or prompt price.
Curtailment – The intended energy usage reduction below what it could have otherwise produced to balance energy supply and demand.
Dekatherm (dth) – A unit of energy that is equal to one million British thermal units or ten therms. Primarily used in the natural gas industry, dekatherms measure the actual heating value of a specific volume of natural gas.
Demand Response (DR) – When consumers reduce or shift electricity usage during peak periods in response to time-based rates or other financial incentives.
Deregulated Energy – Allows for the competitive negotiation of energy supply by consumers.
Deregulated Energy Market – State governments that have deregulated their natural gas and/or electricity markets to allow for competitive negotiation of third party energy suppliers.
Direct to Green – A program that provides clients with access to electricity generated from renewable energy sources such as solar power, hydropower, biomass, and wind.
Direct to Grid – A unique method of purchasing electricity that provides end-users access to wholesale prices with the actual costs of electricity passed through.
Electric Grid – An interconnected system of electricity substations, transformers, and power lines that connect electricity producers and consumers.
Electric Vehicle (EV) – A vehicle powered entirely or partially by electricity from a battery that requires recharging.
Electric Vehicle Charger (EV) – A piece of equipment that supplies electrical power for charging plug-in vehicles.
Electric Vehicle Charger Partner – A company (reseller or service provider) that Freedom Energy partners with to provide clients with EV charging solutions.
Energy Portfolio – A combination of all practices, supply contracts, infrastructure and cost mitigation strategies related to a organization’s energy management.
Energy Procurement – The process of negotiating supplier bids to secure the most favorable terms when purchasing electricity, natural gas, and renewable energy.
Energy Service Company (ESCO) – Main difference is that ESCOs guarantee Energy savings
Energy Service Performance Contracts ESPC – A service provider that develops, designs, builds, and secures financing for projects that save energy, reduce energy costs, and decrease operations and maintenance costs for consumers.
Energy Supplier – Separate from a utility company, an energy supplier owns the energy the utility company delivers through its infrastructure. In deregulated energy markets, consumers choose their energy supplier.
Expiration – The date a futures price/contract ends.
Fixed Price – Occurs when a consumer locks in a rate (the rate stays the same) throughout the contract term.
Fleet Electrification – A method that allows consumers to transition existing vehicles from gas to electric to reduce carbon emissions.
Forward Capacity Market – A long-term wholesale electricity market that assures resource sufficiency, locally and systemwide. The market promotes economic investment in supply and demand capacity resources where they are needed most.
Front-of-Meter (FTM) – Generation and storage that support the grid, including transmission lines; must pass through meter before it can be consumed.
Fuel Switching – The method of replacing inefficient fuels with cleaner and more economical alternatives.
Futures Price – Price of a commodity for delivery at a future date.
Generation Information System Account (GIS account) – An emissions reporting and tracking tool that monitors the environmental characteristics of generated electricity.
Green-E – A consumer protection that provides purchasers of renewable energy product information, assurance of product quality, and verification of product ownership.
Greenhouse Effect – A process that locks in the sun’s energy due to atmospheric composition; a process that warms the planet.
Greenhouse Gas Emissions (GHG or GhG) – Gases vented to the Earth’s atmosphere because of human activities.
Heating, Ventilation, Air Conditioning (HVAC) – Refers to systems used for moving air between indoor and outdoor areas and heating and cooling both residential and commercial buildings.
Hedging – An approach energy suppliers use to purchase energy in a way that reduces exposure to the high volatility of the wholesale energy market.
Henry Hub – A major natural gas distribution hub located in Erath, Louisiana, providing several natural gas pipelines throughout the United States.
Hydroelectric – The generation of electricity using flowing water.
Incremental Carbon Goal – Benchmarks companies set to reduce carbon emissions and meet their goals or objectives set by local, state, or federal governments.
ISO-New England (ISO-NE) – An independent, not-for-profit corporation responsible for keeping electricity flowing across the six New England states and ensuring that the region has reliable, competitively priced wholesale electricity today and into the future.
Joule (J) – A unit of work or energy equal to the work done by a force of one newton acting through a distance of one meter.
Kilowatt Hour (KWh) – A measure of electrical energy equivalent to a power consumption of 1,000 watts for 1 hour.
Light Emitting Diode (LED Lighting) – LED stands for light emitting diode; LED lighting products create light up to 90% more efficiently than incandescent light bulbs.
Liquefied Natural Gas (LNG) – Natural gas that has been cooled to a liquid state, at about -260° Fahrenheit, for shipping and storage.
Load Management – Controlling electricity consumption based on financial signals from the electricity market; also known as ‘Demand Side Management’
Load Tranches – A long, narrow ditch in the ground that houses gas structures.
Load Zones – A geographic area established by the ISO from which the ISO derives aggregated data of MW-Hour net energy for load.
Locational Marginal Pricing Data (LMP) – Data Wholesale electric energy prices that reflect the value of electric energy at different locations, accounting for the patterns of load, generation, and the physical limits of the transmission system.
Megawatt (MW) – A unit for measuring power that is equivalent to one million watts.
Natural Gas Storage Report – A weekly report provided by the EIA used to measure the balance of natural gas supply, demand, and storage.
Net Energy Billing (NEB) – A program that allows consumers to offset their electricity bill using the output from a renewable energy resource.
Net-Zero Goal – A plan to reduce greenhouse gas emissions to zero and eventually reach a point where greenhouse gas released is less than what is removed naturally through the atmosphere.
New York Mercantile Exchange (NYMEX) – The cost of the commodity based on the price of gas at a set point, such as Henry Hub.
Off-Grid – Electricity independent of utilities, such as the electrical grid, through a renewable resource.
On-Site Solar Net Metering – Credits consumers receive when they use a solar energy system and reduce their impact on the grid.
Power Purchase Agreements (PPA) – An agreement that allows a third-party company to install, own, and operate an energy system on a consumer’s property that the consumer can then purchase at a low price.
Price Index – A number expressing the level of a group of commodity prices relative to the level of the prices of the same commodities.
Prompt Month – Refers to the futures contract closest to expiration and is usually for delivery in the next calendar month.
Renewable Energy – Energy generated from natural sources such as sunlight, wind, rain, tides, waves, and geothermal heat through processes that are constantly replenished; often referred to as clean energy.
Renewable Energy Credits (REC) – A REC is a tradeable, market-based, renewable energy credit that legally represents the renewable attributes equal to one megawatt-hour (MWh) of renewable electricity generation delivered to the grid from a renewable energy resource.
Risk Management – The process of identifying, evaluating, and prioritizing risks associated with uncertainty in volatile energy markets.
Settle Price – The final price at the expiration of a futures contract.
Solar Power Purchase Agreements (Solar PPA) – A financial agreement where a developer arranges for a solar system’s design, permitting, financing, and installation.
Spot Market – Price of immediate delivery of natural gas.
Spot Price – Price of a commodity for immediate delivery.
Storage – The amount of energy produced and can be utilized for later use. This is crucial to alleviate any discrepancy between energy demand and energy production.
Strip Price – Futures price of a commodity over an average period of time, typically 12-Months. Calendar Year Strip vs. 12-Month Strip.
Sustainable Energy – Clean, renewable energy from sources that cannot be depleted.
Therm – A unit of heating value equivalent to 100,000 British thermal units (Btu).
Utility Company – A company that provides the delivery of electricity and natural gas through its infrastructure; holds a monopoly related to the delivery and supply of energy in non-deregulated states.
Virtual Net Metering (VNM) – Bill crediting system available for consumers participating in community solar programs; offers a share of the payment received from the utility as a rebate.
Watt (W) – The absolute meter-kilogram-second unit of power equal to the work done at the rate of one joule per second or to the power produced by a current of one ampere across a potential difference of one volt.
Wholesale – Wholesale electricity costs are paid for by market participants who buy electricity from the wholesale market or because they are a supplier to retail consumers.