Glossary

This is the consolidated glossary for the US Power Markets series, combining every abbreviation and technical term introduced across all four parts into a single cumulative reference. Terms are grouped by theme, with the part in which each set was introduced noted alongside the category. For the full analysis, see Part I (A Primer), Part II (Inflection), Part III (Rerating), and Part IV (vs Other Markets).

REGULATORY & MARKET BODIES  ·  Part I
AD / CVD Antidumping Duty / Countervailing Duty — trade remedies imposed by US Department of Commerce.
CAISO California Independent System Operator. Runs California’s wholesale market.
ERCOT Electric Reliability Council of Texas. Single-state ISO, outside FERC jurisdiction.
FERC Federal Energy Regulatory Commission. Regulates interstate wholesale power, transmission tariffs.
ISO / RTO Independent System Operator / Regional Transmission Organisation. Non-profit grid operators.
MISO Midcontinent Independent System Operator. 15 states across Midwest/South.
NERC North American Electric Reliability Corporation. Sets mandatory reliability standards.
NYISO New York Independent System Operator.
PJM PJM Interconnection. Largest US RTO; 13 states + DC; named for Pennsylvania-NJ-Maryland origin.
PUC / PSC Public Utility / Service Commission. State body that regulates retail utility rates.
SPP Southwest Power Pool. 14 states across central plains.
MARKETS & PRICING  ·  Part I
BRA Base Residual Auction. PJM’s primary forward capacity auction.
Capacity market Forward auction procuring firm capacity to meet future peak demand plus reserve margin.
Day-ahead market Wholesale market clearing one day before delivery, hourly granularity.
FCM Forward Capacity Market (ISO-NE’s capacity construct).
Heat rate Energy input per unit electricity output, typically Btu/kWh. Lower = more efficient.
Henry Hub US benchmark natural gas pricing point, located in Louisiana.
ICAP / UCAP Installed Capacity / Unforced Capacity. Installed nameplate vs. performance-adjusted.
LMP Locational Marginal Price. Wholesale electricity price at a specific grid node.
MW / GW / TWh Megawatt / Gigawatt (capacity); Terawatt-hour (energy = capacity × time).
PPA Power Purchase Agreement. Long-term bilateral contract between generator and buyer.
Real-time market Wholesale market clearing every 5–15 minutes against actual demand.
Reserve margin Capacity above forecast peak load to handle outages and forecast error; NERC targets ~15–20%.
Spark spread Gross margin of a gas plant: power price − (gas price × heat rate).
TECHNOLOGY & PHYSICAL  ·  Part I
BESS Battery Energy Storage System. Almost always lithium-ion at utility scale today.
BWR / PWR Boiling Water Reactor / Pressurised Water Reactor. Two dominant US nuclear designs.
CCGT Combined-Cycle Gas Turbine. Brayton + Rankine cycles; 60%+ efficiency.
CCUS Carbon Capture, Utilisation, and Storage.
Capacity factor Actual generation ÷ theoretical maximum at nameplate. Nuclear ~92%; wind 35–45%; solar 18–30%.
EHV Extra-High Voltage. Transmission at 345 kV and above.
GOES Grain-Oriented Electrical Steel. Silicon-iron alloy used in transformer cores.
GSU Generator Step-Up transformer. Steps generator output voltage up for transmission.
HVDC High-Voltage Direct Current. Used for long-distance transmission >500 miles.
IPP Independent Power Producer. Merchant generator selling into wholesale market.
PV Photovoltaic. Solar electricity from the photoelectric effect.
SMR (1) Small Modular Reactor. Nuclear reactor <300 MWe, factory-fabricated.
SMR (2) Steam Methane Reforming. Industrial route to grey/blue hydrogen.
T&D Transmission and Distribution.
POLICY & FINANCE  ·  Part I
IIJA Infrastructure Investment and Jobs Act 2021. Bipartisan infrastructure spending.
IRA Inflation Reduction Act 2022. Largest US climate spending package.
IRP Integrated Resource Plan. Long-term utility planning document, filed with state PUC.
ITC Investment Tax Credit (§48 / §48E). Tax credit on capital cost of clean energy.
OBBBA One Big Beautiful Bill Act 2025. Reset of IRA tax credits.
PTC Production Tax Credit (§45 / §45Y). Tax credit per kWh of qualifying generation.
PUHCA Public Utility Holding Company Act 1935. Broke up utility holding pyramids.
PURPA Public Utility Regulatory Policies Act 1978. Required utility purchase from qualifying facilities.
Rate base Depreciated book value of utility assets approved by PUC for cost-of-service recovery.
ROE Return on Equity. Allowed by PUC, typically 9.0–10.5%.
MARKETS & DEMAND  ·  Part II
AEO Annual Energy Outlook. EIA’s long-term US energy forecast, published annually.
BkWh Billion kilowatt-hours. EIA’s preferred unit for national consumption (= TWh).
BNEF BloombergNEF. Energy research and forecasting unit of Bloomberg.
Co-location Direct connection of large load to generator at same site, bypassing grid interconnection.
STEO Short-Term Energy Outlook. EIA’s monthly two-year forecast.
VPP Virtual Power Plant. Aggregation of distributed resources providing grid services.
TECHNOLOGY & INFRASTRUCTURE  ·  Part II
BPA Bonneville Power Administration. Federal Pacific Northwest hydro operator.
DLR Dynamic Line Rating. Real-time conductor capacity assessment using temperature, weather.
EGS Enhanced Geothermal System. Engineered reservoirs in hot dry rock.
FACTS Flexible AC Transmission Systems. Power electronics for reactive power/voltage management.
FEOC / PFE Foreign Entity of Concern / Prohibited Foreign Entity. OBBBA restrictions on China, Russia, Iran, DPRK.
LDES Long-Duration Energy Storage. Multi-hour to seasonal storage (flow batteries, compressed air, hydrogen, iron-air).
NREL National Renewable Energy Laboratory. US DOE research institution; produces ReEDS capacity expansion modelling.
ReEDS Regional Energy Deployment System. NREL’s flagship capacity expansion model.
RTC+B Real-Time Co-optimisation with Batteries. ERCOT’s storage-aware market design.
STATCOM / SVC Static Synchronous Compensator / Static VAR Compensator. FACTS device categories.
TVA Tennessee Valley Authority. Federal utility serving 10 million people in 7 SE states.
POLICY & INTERNATIONAL  ·  Part II
COP Conference of the Parties. Annual UN climate summit under UNFCCC.
NCQG New Collective Quantified Goal. COP29 finance target: $300B/year by 2035 from developed countries.
NDC Nationally Determined Contribution. Country-level climate plan under Paris Agreement.
UAE Consensus COP28 Dubai final text. First explicit call to “transition away from fossil fuels”.
UNFCCC United Nations Framework Convention on Climate Change. Treaty body convening COPs.
EQUITY & PORTFOLIO  ·  Part III
S5UTIL S&P 500 Utilities sector index. Ticker for the GICS Utilities sub-index.
Forward P/E Price-to-earnings ratio using next-twelve-month consensus EPS estimate.
GICS Global Industry Classification Standard. S&P/MSCI sector classification framework.
Track (in this post) Distinct equity exposure type within the portfolio framework; five used here.
HALEU High-Assay Low-Enriched Uranium. 5–20% U-235 enrichment level; required for many advanced reactors.
NNSA National Nuclear Security Administration. US DOE agency overseeing nuclear weapons stockpile and defence nuclear fuel cycles.
UK / EU  ·  Part IV
ACER Agency for the Cooperation of Energy Regulators. EU-level energy regulator coordinator.
AR (AR7) Allocation Round. UK CfD auction rounds. AR7 opened summer 2025.
CfD Contracts for Difference. UK low-carbon support scheme: 15-year strike price for renewables/nuclear.
CISAF Clean Industrial Deal State Aid Framework. EU 2025 framework consolidating capacity mechanism rules.
ENTSO-E European Network of Transmission System Operators for Electricity.
ERAA European Resource Adequacy Assessment. EU framework for system adequacy modelling.
NESO National Energy System Operator. GB grid operator; public ownership since October 2024.
Ofgem UK Office of Gas and Electricity Markets. National energy regulator.
REMA Review of Electricity Market Arrangements. UK market design review (2022–25). Resulted in Reformed National Pricing.
RNP Reformed National Pricing. UK programme launched July 2025 to reform single national market.
SDAC / SIDC Single Day-Ahead Coupling / Single Intraday Coupling. EU cross-border market coupling algorithms.
SSEP Strategic Spatial Energy Plan. UK planning framework, due end-2026.
TNUoS Transmission Network Use of System. UK transmission charging regime.
TSO Transmission System Operator. European equivalent of US RTO/ISO.
INDIA  ·  Part IV
CEA Central Electricity Authority. India’s technical electricity planning body.
CERC Central Electricity Regulatory Commission. Federal Indian electricity regulator.
Discom Distribution company. Indian retail electricity utility; mostly state-owned, mostly loss-making.
GTAM Green Term Ahead Market. India’s renewable-only spot market segment.
IEX Indian Energy Exchange. Dominant Indian power exchange (~95% market share by volume).
NHPC / NTPC National Hydroelectric / Thermal Power Corporations. India’s largest state-owned generators.
POSOCO Power System Operation Corporation. Indian grid operator (renamed Grid Controller of India).
SECI Solar Energy Corporation of India. Federal renewable energy procurement agency.
SERC State Electricity Regulatory Commission. State-level Indian electricity regulators (28 total).
SHAKTI Scheme for Harnessing and Allocating Koyala Transparently. India’s coal allocation policy framework.
VGF Viability Gap Funding. Indian government subsidy mechanism, applied to BESS deployment.
CHINA / JAPAN  ·  Part IV
EGC Electricity and Gas Market Surveillance Commission. Japan’s electricity market regulator.
JEPX Japan Electric Power Exchange. Japan’s wholesale power exchange.
METI Ministry of Economy, Trade and Industry. Japan’s lead energy policy ministry.
NDRC National Development and Reform Commission. China’s top economic planning body, including energy.
NEA National Energy Administration (China). Energy sub-agency under NDRC.
NRA Nuclear Regulation Authority (Japan). Post-Fukushima independent nuclear safety regulator.
OCCTO Organization for Cross-regional Coordination of Transmission Operators (Japan). Operates capacity market.
S+3E Safety + Energy security, Economic efficiency, Environment. Japan’s energy policy framework.
SEP Strategic Energy Plan. Japan’s multi-year energy policy framework; Seventh SEP finalised February 2025.
State Grid State Grid Corporation of China. State-owned monopoly transmission/distribution operator (~88% of China).
TEPCO / KEPCO Tokyo / Kansai Electric Power Companies. Japan’s two largest regional utilities.