BEECHER - NAWC

Water ComparedGlossaryinformation about their availabletransmission facilities. (EnergyInformation Administration)Firm power. Delivery of utility serviceon a non-interruptible, always availablebasis. A utility must supply its firm powercustomers whenever they demand it,despite conditions.Firm wheeling. Transmission ofelectricity for another party that is notsubject to interruption except forcircumstances beyond the transmittingutility's control.Franchise. A privilege to do business thatmay be limited to specified period of timeand/or geographical area and may or maynot be exclusive.Gas inventory charge. Charge assessedby a pipeline for standing ready to servecustomers. Designed to cover all take-orpayliabilities and other costs of gas supplynot recovered through the commoditycharge.Grid. A transmission system forinterconnecting producers.Hedging. The difference between aprearranged price and the sum of (a) thecash-market city-gate price as quoted by acommodity price index, (b) a previouslyagreed upon retail wheeling markup, and(c) distribution company transportationcharges relevant to the particularconsumer. (IURC Regflex report)Incentive rates. Rates used to inducedesirable usage (for example, economicdevelopment rates) or timing of usage (forexample, time-of-day rates).Incentive regulation. Methods ofeconomic regulation, including but notlimited to the use of price caps, designedto provide utilities with incentives forefficiency, cost control, and/or otherdesirable activities.Independent power producer (IPP). Asdefined b y FERC under PURP A, agenerating entity, other than a qualifyingfacility (QF) and not a utility, that is: (1)unaffiliated with the utility purchaser and(2) lacks significant market power. Thefacility must not be in the utility's ratebase.Independent system operators (ISO).Proposed entities to operate the electricitytransmission grid on a nondiscriminatorybasis. (Energy InformationAdministration)Integrated utility. A utility providingmore than one service or function, such astransmission and distribution.Interconnection. The connection of twoor more systems. It has more precisemeaning for different industries. (depending on the nature of network).Interruptible rates. Special rates forenergy consumers who are willing to havetheir energy delivery service interrupted bythe utility when necessary. This is a lowpriorityservice with generally lower unitrates.Joint use. More than one entity uses anentity's property or facilities, such asutility poles used for telephone lines,usually for compensation to the owner.Lifeline rates. As approved by the FCC,customers meeting certain eligibility tests,NAWC 158September 1998