1 COMMUNITY ENERGY | GLOSSARY GUIDEBOOK & TOOLKIT

GLOSSARY TO COMMUNITY ENERGY GUIDEBOOK & TOOLKIT G-1 COMMUNITY ENERGY | GLOSSARY

GLOSSARY - COMMUNITY ENERGY GUIDEBOOK & TOOLKIT Community Energy Guidebook & Toolkit Decentralised Energy Canada July 31, 2020 ------©2020 Decentralised Energy Canada All rights reserved. Permission is granted to cite all or part of this publication for non-commercial purposes as long as you cite the source.

Recommended citation: Decentralised Energy Canada. (2020, July 31). Community Energy Guidebook. https://www.deassociation.ca/community-generation

Decentralised Energy Canada 3608 33 Street NW Calgary, Alberta T2L2A6 Phone: 403-210-5374

Additional copies of this publication may be downloaded from the Decentralised Energy Canada website at https://www.deassociation.ca/community-generation

Energy Efficiency Alberta and Her Majesty the Queen in right of Alberta make no warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information contained in this publication, nor that use thereof infringe on privately owned rights. The views and opinions of the author expressed herein do not necessarily reflect those of EEA or Her Majesty the Queen in right of Alberta. The directors, officers, employees, agents and consultants of EEA and the Government of Alberta are exempted, excluded and absolved from all liability for damage or injury, howsoever caused, to any person in connection with or arising out of the use by that person for any purpose of this publication or its contents.

Decentralised Energy Canada (“DEC”) makes no express or implied representation or warranty or assumes any legal liability or responsibility as to the accuracy, completeness, or usefulness of any information contained in this publication, nor if the use thereof infringes on privately owned rights of a third party. The views and opinions of the author(s) expressed herein do not necessarily reflect those of DEC. DEC and its directors, officers, employees, agents and consultants are exempted, excluded and absolved from any and all liability for damage or injury, howsoever caused, in connection with or arising out of the use for any purpose of this publication or its contents. GLOSSARY | COMMUNITY ENERGY G-2

GLOSSARY

For additional glossary terms that are linked to Alberta’s Regulatory and Legislative standards, AESO has collated an Authoritative Glossary Document, available online at https://www.aeso.ca/assets/Uploads/Consolidated-Authoritative-Document-Glossary-December-1-2019-.pdf

Administration Charge is a monthly charge on Balance of System (BOS) describes all the components bills that recovers the Wire Service of a photovoltaic system other than the photovoltaic Provider’s and/or Retailer’s customer service, panels themselves. This includes hardware such as billing, communication, and other costs. wiring, switches, the mounting or racking system, solar inverters, battery banks and software required to Alberta Electrical System Operator (AESO) is a not- run solar systems. Sometimes the installation labour for-profit organisation that manages and operates the and permits for interconnection and inspection are provincial power grid while facilitating the co mpetitive included in these costs. Managing the BOS costs can electricity market. See Chapter 3 for more details have a significant impact on project economics. on their role in Alberta’s provincial power grid. Balancing Pool (BP) is a crown corporation, established Alberta Interconnected Electrical System (AIES) by the Electric Utilities Act, that manages the Power is the system of interconnected transmission Purchase Arrangements for regulated power plants. power lines and generators in Alberta. is the minimum amount of electric Alberta Utility Commission (AUC) is an independent power delivered or required all hours over a quasi-judicial agency of Alberta that is responsible for given period of time. Baseload Power Plants regulating both the and electricity utility operate at full output whenever possible. sectors, as well as providing adjudicative functions for the electric and natural gas markets, while protecting the Baseload Power Plant describes a generating power social, economic and environmental interests of Alberta. plant that can afford to operate even at lower pool pricing. and plants Alternating Current (AC) is an electric current that tend to run baseload as they have lower operating regularly reverses direction. In North America, the costs and are less flexible than other generation. standard alternating current is 60 cycles per second, described as a frequency of 60 hertz (Hz). In a plumbing Behind-the-Fence (BTF) generation is connected on the analogy, the current is the flow rate within the pipes user’s side of a utility meter, primarily for energy use on where the water changed direction 60 times per second. site instead of for sale to energy retailers. Sometimes this is also called Behind the Meter or Site Generation. Alternative Energy is heat or electricity that is generated from a renewable or green resource. Bilateral Agreement - A generator can enter into a bilateral agreement directly with a buyer for the sale and Anaerobic Digestionis a sequence of processes by which purchase of electricity. The actual dispatch and delivery microorganisms break down biodegradable material of that electricity takes place in real time, through the in the absence of oxygen and is used for industrial or wholesale market (the power pool). With a net settle domestic purposes to manage waste or to produce fuels. instruction the power exchanged between seller and buyer Ancillary Services are services provided by is registered with AESO. By doing so, AESO will exclude the generators necessary to support the transmission contracted volume of electricity from the buyer’s monthly of energy to loads while maintaining reliable settlement and from the renewable generator’s metered operation of the transmission system. generation. The buyer pays the generator according to the price and terms agreed to, and legal title to the electricity and environmental attributes is transferred to the buyer. G-3 COMMUNITY ENERGY | GLOSSARY

Biomass describes organic matter that is used to Combined Cycle is an electric generating technology produce synthetic fuels or is burned to produce energy. in which electricity is produced from otherwise lost fuels include wood waste, peat, manure, exiting from one or more gas (combustion) grain by-products and food processing wastes. turbines. The exiting heat is routed to a heat recovery steam generator (HRSG) that produces steam to drive Biomethanationis a process by which organic a steam turbine to produce additional electricity. material is microbiologically converted under anaerobic conditions to . Combined Heat and Power (CHP) describes a generating process that produces electricity and thermal Break fee is the fee a developer or other developing energy (such as heat or steam), used for industrial, partner may request in the context of breaking commercial, heating, or cooling purposes. While a fixed-price contract. This fee alleviates the similar to cogeneration, the term CHP is more often developer taking on all the financial risk in the applied to commercial applications, while the term event the project - due to unforeseen circumstances cogeneration is more common in industrial applications. - cannot continue its original course. Community Benefits Statement (CBS)concisely is the ratio of the electrical summarises the outcome of a project and its beneficial energy produced by a generating unit for a given impact on a particular community. In the context of the period of time to the electrical energy that could Small Scale Generation Regulation, CBS are used when have been produced at continuous full-power the project is owned and operated by a single entity. operation during the same period of time. Community Benefits Agreement (CBA)is a legally Capacity is the maximum sustainable amount of electric enforceable agreement between several parties involved energy that can be carried or delivered in a second under in a project that outlines the transaction between the ideal circumstances. Capacity is a term that can be applied parties and the expected benefits that will be exchanged. to a transmission system or to a piece of equipment, In some cases CBAs may be embedded in a development such as a generating unit, electric service or appliance. agreement, however there are many examples where It is measured in watts, kilowatts or megawatts. multiple parties sign a separate CBA that involves Capacity Market is a market where electricity producers community coalitions that seek benefits from a project. receive contracts for the availability of their capacity The parties may also summarise the CBA in a simplified to guarantee a certain amount of reliable generation in Community Benefits Statement to increase transparency the future. The generator is also paid for the electricity and as a tool for quantifying deliverable benefits. it produces, however the capacity market provides Community Energy Plan (CEP) is also known as a strategic a degree of revenue stability to the generator. energy plan or a community energy and emissions plan. A Centralised Generation/Centralised Energy Production CEP identifies a community’s energy goals and priorities, is when electricity generation is located near the current energy usage, energy efficiency opportunities, resources that are used to produce it. This may and potential for generation project. require long transmission lines to take the electricity Community Generation, or community energy, where it is needed. It also refers to large scale refers to renewable and alternative energy generation that provides energy to consumers in a that is distribution system-connected and jurisdiction via high voltage transmission lines. provides benefits to a local community.

Cogeneration is a generating process that Congestion occurs when the transmission system produces electricity and useful thermal energy cannot accommodate demand and some local (such as heat or steam) to be used for industrial, generation is reduced. The limits are determined commercial, heating, or cooling purposes. by the capacity of the transmission components and their accepted reliable operating criteria. GLOSSARY | COMMUNITY ENERGY G-4

Contingency Reserve describes an amount of Decentralised Generation is located close to where electrical generating reserve that can respond the electricity is used and typically does not access the to the loss of generating capacity to keep the transmission system. This means that the generation system operating. In Alberta, it includes both is often smaller and connected to lower-voltage spinning and supplemental reserves. distribution portions of the grid. This may also include off-grid deployment. See also Contracts for Differences (CfD) is a contract transacted directly between a generating facility and a power Demand (electricity) is the volume of electric energy purchaser, where legal title to the power is not transferred required to be delivered to, or consumed by, a system, to the power purchaser. Instead the generation facility by part of a system, customer, or equipment at a given sells its power directly to the grid and receives the open instant or averaged over any designated period of time. market price. The power purchaser pays the difference to the generating facility when the market price is lower Development Agreement is a legally enforceable than the agreed upon purchase price; and vice versa if the agreement between a private developer/landowner and market price is higher. A CfD is a form of bilateral energy a local jurisdiction (e.g., city, municipality, etc.) regarding supply agreement. This agreement is solely between the development of land or property. It sets out the the buyer and seller and the parties settle directly with terms and conditions along with the responsibilities each other monthly without involving the AESO. and timelines regarding the construction of public facilities and financial obligations. Public facilities or Conventional Generationis electricity produced by improvements could include roads, utilities or other gases or steam produced by burning fossil fuels. public works required to service the development.

Conventional Nuclearis a term used to describe the Digester is a vessel where chemical or biological form of nuclear power that has been largely deployed reactions are carried out. Typically, substances in the to date. Typically, this has involved uranium fuel in a vessel are treated with heat, enzymes, or solvents metal case that is cooled with water from which steam to promote decomposition or to extract essential is raised and used in a turbine to produce power. components. This is a process called Digestion.

Coolant is a substance, typically liquid or gas that Direct Current (DC) is an electric current that only is used to reduce or regulate the temperature of a travels in one direction. In a plumbing analogy, the system. In power generation it is used to transfer current is the flow rate within the pipes. Batteries heat from nuclear reactors or to condense low supply direct current. Alberta has two High Voltage pressure steam as it exits a steam turbine. Direct Current (HVDC) transmission lines in operation.

Current is the measure of flow of electrons through Dispatch describes the process that a system operator conductive material. In a plumbing analogy, the uses to direct the real time operation of an electricity current is the flow rate within the pipes. Current supplier or purchaser to cause a specific amount is measured in amperes. The majority of North of electricity to be generated or consumed. American electrical systems use Alternating Current. See also Alternating Current and Direct Current. Distributed Energy Production is a form of generation in a community or on a host site where a significant amount Decentralised Energy (DE) is defined as heating, cooling of the energy produced is consumed locally. See also or electrical energy that is produced, managed and/ Decentralised Generation or Distributed Energy Resources. or stored at the point of consumption. This includes onsite energy generation, microgrid and enabling technologies, and energy efficiency measures. G-5 COMMUNITY ENERGY | GLOSSARY

Distributed Energy Resources (DER) are defined as broad and expanding range of applications. electricity generation and/or storage technologies located within the boundaries of the area of a particular Electric Grid is a collection of interconnected distribution utility, usually connected to consumer units generating plants, transmission lines, transforming (behind-the-meter). In addition, this definition has often substations and distribution lines. been expanded to include energy efficiency, demand Electric Utilities Act governs the operation response (DR) and demand side management (DSM). of the Alberta power system.

Distribution Connected Generator (DG) is a Electric Vehicles (EVs) source all or part of their generating unit that is connected to an electrical power from electricity supplied by the electric grid. grid that is part of an electric distribution system. Energy Audit is an inspection survey and an Distribution Facility Operators (DFO)are private analysis of energy flows for energy conservation companies, towns, cities or rural associations that in a building. It may include a process or system construct and operate lower-voltage short-distance to reduce the amount of energy input into the lines that deliver electricity from the transmission system without negatively affecting the output. system to consumers. In many interconnection documents in Alberta these can also be referred Energy Delivery Charges are charges based on to as Wires Service Providers (WSPs). the energy consumed during a period of time in a distribution or transmission tariff. Distribution Substationis a facility that reduces transmission voltages to lower voltages for local Energy Management System (EMS) is the name of AESO’s distribution to customers. Typically 25kV or less. system controller that continuously monitors the dispatch and consumption of electricity to maintain grid reliability. Distribution is the final stage in the delivery of electricity from the transmission system to Energy is the ability to do work and can come in individual customers, normally at 25KV or less. many different forms: heat (thermal), light (radiant), motion (kinetic), electrical, chemical, nuclear, and District Energy systems are networks of hot and gravitational (potential). More specifically, energy is cold water pipes, typically buried underground, that related to the amount of work that is done. For example, are used to efficiently heat and cool many buildings driving a car from Edmonton to Calgary represents a from a single source. District Energy systems are certain amount of work and takes a certain amount typically more efficient than if the individual buildings of energy. Energy is measured in kWh or MWh. were to each have their own boilers and chillers and can more easily deploy technology such as CHP. Energy-only Market is a type of electricity Sometimes this is also referred to as . market where electricity producers are paid only for the electricity that they produce. Economy of scale is a term used to describe cost advantages that result from efficiencies Engineering, Procurement and Construction (EPC) is a gained by conducting business activities form of contracting arrangement where the contractor at larger sizes or higher volumes. carries out the detailed engineering design of the project, procures all the equipment and materials necessary, and Economy of series is a term used to describe then constructs the project to deliver a functioning asset systems that reduce costs by making multiple to the client. Engineer Procure and Construct (EPC) is a identical units in assembly-line conditions. type of construction contract that requires contractors to Electricity is a form of energy expressed as the complete the engineering and construction on a fixed price flow of electrons. It is often derived by converting basis. This often is a lower risk, higher cost approach. chemical or mechanical energy such as coal, natural gas, nuclear, solar, or wind and has a GLOSSARY | COMMUNITY ENERGY G-6

Feeders are the lines that move electricity between Generating Unitis a component of a power the distribution substation and locally distributed plant that produces electric energy. . Feeders have limitations regarding how much electricity they can safely carry, which Geo-Exchange technology uses the earth’s renewable means that they have limitations regarding how much energy, just below the surface, to heat or cool a home generation can safely connect to them. Distribution or other building, and to help provide domestic hot feeder capacity is a key consideration for community water. It’s sometimes referred to as a geothermal heat generation and small-scale generation projects. pump, a ground source heat pump, or earth energy.

Fermentation is an enzymatically controlled Geothermal is the thermal (heat) energy that is generated anaerobic breakdown of an energy-rich and stored in the Earth. This energy resource can be compound such as a carbohydrate to carbon used to provide direct heat and to generate electricity. dioxide and alcohol or to an organic acid. Giga = one billion

Fission is a form of nuclear reaction or a radioactive Gigawatt (GW) = one million kilowatts or a billion watts decay process in which the nucleus of an atom splits into two or more smaller, lighter nuclei. The fission Greenhouse Gases (GHG) are gases in earth’s atmosphere process often produces gamma photons and releases that sustain life on earth by trapping heat. These a very large amount of energy even by the energetic include water vapour, carbon dioxide, methane, nitrous standards of radioactive decay. Conventional nuclear oxide, ozone, and chlorofluorocarbons. The three gases plants use fission reactions to produce heat. that are often linked to human activities are carbon dioxide, methane, and nitrous oxide. As these gases Fixed Rate is a rate that remains constant over proliferate, the natural effects of GHGs increase. the term of a contract or agreement. Head is the change in water levels between the Floating Rate is a rate that moves up or down hydro intake and the hydro discharge point and alongside the index that it tracks. influences the gravitational (or potential) energy Frequency is a term used in electrical engineering available to the facility. The more head you have, defined as a number of cycles per unit of time. the higher the water pressure across the hydro Frequency is measured in hertz (Hz). turbine and the more power it will generate.

Fusion is a form of nuclear reaction in which two or Heat Pump is an apparatus for space heating or more atomic nuclei are combined to form one or more cooling (such as a building) by transferring heat by different atomic nuclei and subatomic particles (neutrons mechanical means from or to an external reservoir or protons). Fusion is the process that powers active or (such as the ground, water, or outside air). “main sequence” stars, or other high magnitude stars. Hydrokinetic Power Generation uses the power of moving Currently fusion technology is still in development. water with zero-head instream turbines to generate Gas Turbines convert the potential chemical energy from a electricity. These systems require no dam or large civil gas to rotational mechanical energy, which when coupled projects but rely on the kinetic energy of flowing water. with an electric generator, produces electric energy. Hydropower is a plant in which the turbine Gasificationis a process that converts organic or generators are driven by high pressure water fossil fuel-based carbonaceous materials into carbon at the bottom of a dam, pipe or penstock. monoxide, hydrogen and carbon dioxide generally Independent System Operator (ISO) is an organisation with a controlled amount of oxygen and/or steam. established to coordinate, control, and monitor the operation of the electrical power system within a jurisdiction (usually at the provincial or state level). G-7 COMMUNITY ENERGY | GLOSSARY

Inverters are equipment that converts direct current Low Head Hydro occurs in tidal of flows or rivers electricity to alternating current to ensure the with a head of 20 metres (66 ft) or less used to electricity is compatible with the utility grid. There produce energy with or without a dam. is some voltage loss in the conversion process. Mega = one million Joint Development Agreement (JDA) is a contract that outlines the development process Megawatt (MW)= one million watts or a 1,000 kilowatts and roles among multiple parties that have Megawatt hour (MWh) = 1,000 kW used for one hour joint interest in developing a project. is the order that electric generation is Joule is the basic unit of energy that is equivalent dispatched into the Alberta Power Pool based on the to the kinetic energy (motion) of a kilogram of mass prices bid by all available electric generation, organised moving at the speed of one meter per second. by increasing price. The dispatched unit with the highest Kilo = one thousand price sets the System Marginal Price for that period.

Kilowatt (kW) = one thousand watts Micro-Generation Regulationsets the rules regarding generating units, no larger than 5 MW, that exclusively Kilowatt hour (kWh)= 1 kW used for one hour uses renewable or alternative energy to meet all or a portion of the customer’s energy consumption on a site Landfill gasis generated from the anaerobic (or multiple sites) that are owned by the same customer. digestion of organic matter in a landfill. Methane typically is about half of the gas generated and can Microgrid is a small network of electricity be combusted to generate heat or electricity. users and consumers that are able to function independently of the electric grid. Levelised Cost of Energy (LCOE) is the average cost per megawatt hour of energy that is required to recover Net Billing is a term that describes when a micro- all capital and operating costs, including a specified generator (less than 150kW) is automatically provided rate of return, over the life of the generating asset. a credit based on extra energy produced and It is often represented as the $/kWh or $/MWh to exported to the grid. The excess energy is credited quantify the minimum constant price the electricity at the same charge rate the retailer charges the must be sold at over the lifetime of the project. customer for energy consumed. The customer only pays for the net amount of energy they consume. Load Following is an ancillary service, provided by or a generator that adjusts its consumption Net Settlement Instruction (Direct Sale)is a form of or output to meet the hour-to-hour and daily load bilateral energy supply agreement. This agreement variations between generators and load on the grid. instructs the AESO to exclude the contracted volume of electricity from the buyer’s monthly settlement and Load is defined as the instantaneous amount of energy from the generator’s metered generation for the time demanded at any specific point in the . periods that the parties have agreed. Outside the power Local Access Fees are collected from consumers and pool, the buyer pays the generator according to the price provided to distribution facilities holders in a community. and terms agreed, and legal title to the electricity and The distribution facilities holders then pay this fee to environmental attributes is transferred to the buyer. the community government for the right to access the Noise Impact Assessment (NIA) is an assessment community to operate and maintain their facilities. of the noise produced by a process at a specified distance from the process under specified process conditions and is a requirement under AUC Rule 012 that assesses the sound output of a facility. GLOSSARY | COMMUNITY ENERGY G-8

Non-Energy Charges describes the charges Power Demand is the amount of on power bills that are not related to energy electrical load being consumed. consumption. This can include administration, delivery, distribution charges and others. Power Pool is the competitive wholesale electricity market in Alberta, in which electricity is bought and sold Operating Reserves describes the available on the Alberta electric grid. The Power Pool is operated capability of the electric system to respond to by the Alberta Electric System Operator (AESO). changes in system demand within 10 minutes. This reserve is meant to protect, correct and stabilise Power Purchase Agreements are contracts that facilitate the system in the event of load forecasting errors the buying and selling of electricity between two parties. and/or forced outages of Generating Units. While there are many mechanisms available to buy and sell electricity, most agreements address price, term, and Operations and Maintenance (O&M) includes all volume as well as penalties for failure to deliver or pay. associated functions to do with upgrading and maintaining equipment to meet requirements of operating assets such Power Purchase Arrangements (PPA) are as generating facilities or electrical distribution systems. an Alberta-specific regulated energy supply arrangement. They were introduced in 2001 to Organic (ORC) systems use an organic, foster competition amongst electricity generators as high molecular mass fluid with a liquid-vapour Alberta transitioned to a deregulated market. The phase change, or boiling point, occurring at a lower last of the PPAs are due to terminate in 2020. temperature than the water-steam phase changes. In some applications, the vapour can absorb heat more Power is an instantaneous measure of the rate at efficiently and is used to drive a turbine to produce power. which work is being done and is measured in Watts. If you want to make the trip faster, it will require Owner’s Engineer (OE) is an engineer who represents, more power, but for a shorter time. The total energy and is often employed by, the contracting company. The (power multiplied by time) needed to travel from contracting entity commissions the engineering project. point A to point B remains approximately the same.

Participant Involvement Program (PIP) is an Alberta Price Takers are power generators that always Utilities Commission program establishing guidelines bid zero (zero bid offers) into the power pool. an applicant must comply with during electric and Ultimately, they end up being awarded the gas facilities development and implementation. Pool Price for the electricity they supply.

Peaking Power Plant describes a generating power Proceeding is a formal process undertaken plant that is typically very flexible but less efficient by the Alberta Utility Commission to consider and has higher operating costs so it can only an approval application for generation. operate profitably when the pool price is high. Property Assessed Clean Energy (PACE) is a program Peaking is a term used to describe the capacity of that was developed in other countries to describe generating equipment normally reserved for operation scenarios where municipal governments provide financing during the hours of highest daily, weekly, or seasonal loads. for energy efficiency upgrades and/or renewable energy installations for residential or commercial Penstock is a sluice or gate for regulating a flow (as of property owners. Repayments are made through water) or a conduit or pipe for conducting water. the property tax system. The Alberta government Pool Price is the price paid to generators and has approved a PACE-like program in 2018 to enable charged to consumers for electricity delivered municipalities to offer this to their communities to or consumed from the Alberta power grid in called the Clean Energy Improvement Program. a given hour. It is the average of the 60 settled System Marginal Prices within the given hour. G-9 COMMUNITY ENERGY | GLOSSARY

Project Execution Plan (PEP) provides a guideline Rural Electrification Associations (REAs) is a member- to the project team and stakeholders as to owned not-for-profit cooperative or incorporated entity how to execute and control the project. regulated by the Rural Utilities Act. REAs provide electric distribution system services to members within a specific Radioactive Materialis material containing unstable geographic boundary. Each REA has an elected board of nuclei that will spontaneously decay and lose energy directors that handles the business operations of the REA. by emitting energy in the form of radiation. Simple Cycle refers to electricity generation that does not Rate Riders are the charges or credits that are applied recover its waste heat to produce additional electricity. typically to a customer’s utility bill to make temporary adjustments to transmission or distribution charges. Rate Small Modular Reactors (SMR) describes emerging riders occur when actual transmission and distribution small scale modular nuclear generation technology. costs differ from previously projected costs. Sometimes Currently fission technology exists and fusion technology Rate Riders as also described as Deferral Accounts. is in development. This technology is currently not commercialised in Canada. See both Fission and Fusion. Regulated Rate Option (RRO) is the default electricity contract available to many Alberta electricity consumers. Small Scale Generation Regulation (SSGR)sets the Any business or residence that uses less than 250,000 rules regarding the requirements for small scale kWh per year can choose to pay the regulated rate. commercial generators and further guidelines The RRO rate is determined by the Alberta Utilities to qualify as Community Generation. Commission (AUC) and is based on market price. Solar Photovoltaic (PV) is a technology that Regulating Reserve is generating capacity from on- converts sunlight (solar radiation) into direct line power plants that is held in reserve to respond to current electricity by using semiconductors. system load fluctuations or system disturbances. Steam Turbines convert the potential mechanical Renewable Energy Support Agreement (RESA) is a energy in the linear flow of a fluid to rotational form of Power Purchase Arrangement that was put mechanical energy, which when coupled with an in place as the energy supply agreements under electric generator, produces electric energy. the Alberta Renewable Energy Program (REP). Stranded Costs are costs that have been invested by Renewable Energy is energy that is collected from a utility but, because they are no longer supported by renewable resources that are naturally replenished current operations due to a market or regulatory change, on a human timescale, such as sunlight, wind, are no longer being recovered in the utility’s tariff. rain, tides, waves, and geothermal heat. System Access Service Request (SASR) is the starting Retailer is a company that supplies natural gas or point in the AESO standard connection process. electricity to consumers. Energy retailers purchase and supply natural gas or electricity, which the Distribution System Controller manages the real- Facility Operator then delivers to the consumer. time operations of generating units.

Run of River Hydro is a hydroelectric power plant using System Marginal Price (SMP) is the price that the flow of the stream as it occurs and having little or reflects the intersection of supply and demand for no reservoir storage capacity to help manage output. each minute in the electricity market. This is done in real time and is posted on the AESO website. It is also the highest accepted price paid for electricity within the Power Pool in any given minute. GLOSSARY | COMMUNITY ENERGY G-10

Transformers are voltage conversion equipment and can Transmission is the transportation of electric energy both step-up and step-down voltage. In a distribution over an interconnected group of lines and associated system, transformers reduce voltages to the distribution equipment between points of supply and points of levels typically used by local homes and facilities. delivery, which could be customers or distribution systems. Generally transmission occurs at levels greater than 25KV. Transmission and Distribution (T&D)refers to the different stages of carrying electricity over poles and Voltage is the difference in electric potential between two wires from generators to a home or a business. The points in an electrical field. Voltage is measured in volts. primary distinction between the two is the voltage level at which electricity moves in each stage. Watt is the basic unit used to measure electricity, equivalent to one joule per Transmission Facility Owners (TFO) are private second (1/746th of a horsepower). companies that construct and operate high-voltage high-capacity long distance transmission lines that Wire Owner (WO) is the term used by regulatory agencies conduct electricity from the point of generation to local to describe an electric distribution system wire owner. substations. They are also known as wires owners. Wire Service Provider (WSP) is the organisation Transmission Line Losses are losses in electricity given the authority to operate certain functions as it flows from the generators through the lines relating to the operations and maintenance to the customers. This is a normal and natural part (O&M) of an electric distribution system for a wire of transmission and distribution as all wires have owner, as defined in the Electric Utilities Act. a small level of resistance which works against the Work Energy is related to the work that is done. flow of electric current. The grid consumes a small For example, driving a car from Edmonton to amount of power in overcoming this resistance. Power Calgary represents a certain amount of work consumed in this manner is described as Losses. and takes a certain amount of energy.