Arctic Blocking
A stable, long-lasting high-pressure system in the high latitudes that disrupts the normal westerly jet stream, causing it to stall and often allowing warm air to move northward into the Arctic while forcing cold Arctic air southward.
Backwardation
A market condition where the current price (or spot price) of a commodity is higher than the price for future delivery contracts. Backwardation can create a downward-sloping futures curve, as market participants are willing to pay a premium for immediate delivery.
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.
Bring Your Own Generation (BYOG)
PJM established this framework, expected to be implemented by August 2026, to address increasing power demand from data centers. The policy allows large, new, high-density loads to bypass traditional, slower interconnection queues and avoid or limit curtailment during grid stress if they co-locate and pair facilities with new, dedicated power generation.
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.
Capacity Rates
Charges that reflect the cost of maintaining enough electricity supply to meet peak demand. These rates help ensure that power is available when customers need it most, especially during high-usage periods.
Climate Prediction Center (CPC)
A division of the U.S. National Weather Service that provides forecasts and data on climate trends, including seasonal outlooks and long-term weather patterns that can affect energy usage.
Co-Location Arrangements
In power generation, co-location arrangements involve building large energy consumers, like data centers, directly near or on the site of power generation.
Conservative Operations
These are a set of heightened procedures grid operators use during extreme events (like severe cold, storms, or cyber threats) to ensure grid reliability by taking extra steps beyond normal market operations.
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.
Energy Information Administration (EIA)
A federal agency within the U.S. Department of Energy (DOE) responsible for collecting, analyzing, and disseminating independent and impartial energy information.
ENSO-Neutral
A climate state in which neither El Niño nor La Niña conditions are present in the tropical Pacific Ocean. In this phase, sea surface temperatures, atmospheric pressure patterns, and trade winds in the region are close to their long-term average values and, as a result, global weather patterns tend to be more stable or typical compared to the shifts that occur during El Niño or La Niña events.
Federal Energy Regulatory Commission (FERC)
A U.S. government agency that regulates electricity, natural gas, and oil markets, especially interstate transmission.
Flexible Load Model
A model in which certain electricity-consuming devices, systems, and processes can shift, reduce, or increase power usage in time or intensity to help balance supply and demand on the grid.
Freeze-Offs
A freeze-off is the disruption of natural gas production when freezing temperatures cause the liquids within gas pipelines and infrastructure to solidify, sometimes triggering significant supply drops and price spikes.
Gigawatts (GW)
A unit of power equal to one billion watts. Gigawatts are commonly used to describe the capacity of large power plants or the total electricity demand of a region.
