Base Residual Auction (BRA)

An auction held regularly by PJM to secure future electricity capacity (usually 3 years out) to ensure enough power will be available to meet demand.

Bearish

When prices are anticipated to go down.

Billion Cubic Feet (Bcf)

A unit of measurement for natural gas. One Bcf equals 1 billion cubic feet of natural gas.

Bullish

When prices are anticipated to go up.

Capacity

How much electricity a power plant can make at one time when it’s running at full strength.

Cooling Degree Days (CCDs)

A measure of how much the average daily temperature is above a specific base temperature, typically 65°F, indicating the potential need for air conditioning.

Department of Energy (DOE)

The government group that deals with energy and power in the U.S.

Federal Energy Regulatory Commission (FERC)

A U.S. government agency that regulates electricity, natural gas, and oil markets, especially interstate transmission.

Henry Hub

A major natural gas pipeline hub located in Erath, Louisiana, serving as the delivery point for NYMEX natural gas futures contracts.

Intermittent Renewables

Energy sources like solar and wind that don’t produce power continuously, as they depend on time of day and weather conditions.

Inverter-Based Resources (IBRs)

Power sources, like solar or wind, that use special equipment to send energy to the grid.

Liquefied Natural Gas (LNG)

A natural gas that’s been cooled into a liquid so it’s easier to ship and store.

Locational Marginal Pricing (LMP)

Represents the price of electricity at a specific location, based on supply, demand, and transmission constraints at that point on the grid.

Megawatt-hour (MWh)

A unit of energy equal to 1 million watts used for one hour. It’s commonly used to measure electricity usage or production.

NYMEX

A major marketplace where people trade energy products like oil and gas to set future prices.

PJM Interconnection

A large power grid that manages electricity in parts of the eastern U.S.

Regional Transmission Organization (RTO)

An independent group that coordinates the movement of electricity over large areas to ensure reliability and efficiency.

Storage Injections

When natural gas is put into storage to save for later use.