Energy Terms


Learn all the terms we use


Day-Ahead Market:

The forward market for energy and ancillary services to be supplied during the settlement period of a particular trading day that is conducted by the applicable Independent System Operator, the power exchange, and other Scheduling Coordinators. This market closes with the Independent System Operator’s acceptance of the final day-ahead schedule.

Day-Ahead Schedule:

A schedule prepared by a Scheduling Coordinator or the Independent System Operator before the beginning of a trading day. This schedule indicates the levels of generation and demand scheduled for each settlement period that trading day.


A unit of heat equal to 1,000,000 Btus (1 MMBtu); the thermal equivalent of 1,000 Cubic Feet of gas with a heat content of 1000 Btus per cubic foot.

Delivery Point:

Where gas is delivered from a pipeline and title transfers under a contract.


The rate at which energy is delivered to loads and scheduling points by generation, transmission, and distribution facilities.

Demand Charge:

That portion of a rate for gas service which is based on the actual or estimated peak daily (monthly or hourly) usage or the customer.

Demand Bid:

A bid into the power exchange indicating a quantity of energy or an ancillary service that an eligible customer is willing to purchase and, if relevant, the maximum price that the customer is willing to pay.

Demand-Side Management:

The planning, implementation, and monitoring of utility activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. It refers only to energy and load-shape modifying activities that are undertaken in response to utility-administered programs. It does not refer to energy and load-shape changes arising from the normal operation of the marketplace or from government-mandated energy-efficiency standards. Demand-Side Management (DSM) covers the complete range of load-shape objectives, including strategic conservation and load management, as well as strategic load growth.


The elimination of regulation from a previously regulated industry or sector of an industry.


A diversion occurs when gas is delivered at a different delivery point than orginally contracted for. Such a diversion is generally undertaken to assist in the balancing of a transmission system or of customer supply and demand.

Disclosure Label:

A disclosure label is a standard format of information detailing a competitive power supplier’s prices, the terms of their contract with a customer, the types of power sources used, their air emissions and their labor practices. The same format is to be used by every supplier and distribution company, making it easier to compare the various offers.

Distribution Company:

A distribution company is the local utility that delivers natural gas to your home or business. Also referred to as Local Distribution Company, or LDC.


Any point in the direction of flow of a fluid or gas from the reference point.