BEECHER - NAWC

Water ComparedGlossaryOpen access transporter. In the naturalgas )ndustry, an interstate pipeline that hasagreed to transport for other on anondiscriminatory basis.Performance-based regulation. Analternative to traditional rate base/rate-ofreturnregulation that focuses on meetingperformance objectives rather thancovering the cost of service; includes pricecaps, yardsticks, and profit -sharing.Public Utilities Holding Company Act of1935. Prevented electric and gas utilities!rom using complex corporate structures toevade regulatory oversight.Public Utility Regulatory Policies Act.Part or the National Energy Act of 1978, itrcq u ires State regulatory agencies toconsider a variety of issues affectingelectric and gas utility customers. Theintent was to establish standards andpolicies that promote energy conservation,encourage efficient use of facilities andresources, and provide equitable rates for(:{)nsun1ers.Pool capacity. Capacity provided by apower pool member in order for themember to meet installed or reservecapacity obligations.Pooling. Different utilities share theirphysical plants or resources to increasetheir efficiency and conservation energy.Power brokers. Participants in emergingenergy markets who do not take ownershipof electricity and are not regulated byFERC. (Energy InformationAdministration)Power marketers. Participants inemerging energy markets who buy and sellwholesale electricity and are regulated byFERC. They generally do not possessgeneration or transmission facilities or sellto retail customers. (Energy InformationAdministration)Power pool Two or more interconnectedelectric systems planned and operated tosupply power in the most reliable andeconomical manner for their combinedload requirements and maintenanceprograms.Preferential tariffs or rates. A tariff orrate by which a specified class ofcustomers is given special treatment, forexample a "lifeline" rate top provide verybasic service to low-income customersPrice caps. Relatively recently devisedmeans of regulating utility rates as analternative to rate of return regulation. Theprices the utility charges are capped at acertain level, allowing the utility to earn alarger rate of return if it cuts expenses,increases productivity, etc.Qualifying facility. Cogenerator whosatisfies section 20 I of PURP A. Amongother things, the majority equity ownermust not be primarily engaged ingeneration or sale of electric power, thefacility also must meet certain size, fueluse,and fuel-efficiency requirements.Regulatory compact. The implied longtermsocietal agreement by which utilitiesare granted the right to provide service inexchange for meeting regulatory standardsand requirements for rates and services.Power exchange. A market for tradingpower.NAWC 160September 1998