Grid Glossary

TRENDING TERM

Critical Issue Fast Path (CIFP)

An accelerated stakeholder process used in PJM Interconnection to resolve urgent, contentious, and time-sensitive issues that cannot be resolved through the normal stakeholder process. The process involves several stages of discussion and proposal development, culminating in a submission to the Federal Energy Regulatory Commission (FERC) for approval. The CIFP process has been used in recent years to discuss large load additions (2025) and resource adequacy (2023).

TRENDING TERM

Effective Load Carrying Capability (ELCC)

Measurement used to calculate how much an energy resource–such as a wind farm or solar array–contributes to the overall reliability of the grid. It assesses the resource’s ability to meet electricity demand, particularly during peak usage periods, and is especially useful for variable renewable energy sources whose output depends on factors like weather conditions. 

TRENDING TERM

Disturbance

Refers to any unwanted or unplanned electrical event that interferes with the normal operation of the electrical grid. These can manifest in power outages, surges, and other events, and can originate from various sources within the electrical grid, such as loss of a large generating unit or another grid asset, such as a transmission line or transformer.

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202(c) Order

An emergency order issued by the United States Department of Energy (DOE) under Section 202(c) of the Federal Power Act. It allows the Secretary of Energy to temporarily order connections of facilities and the generation, delivery, or transmission of electricity to best meet an emergency caused by war, a sudden increase in demand, or a shortage of energy or facilities. These temporary orders can also exempt power plants from federal, state, or local environmental rules and have historically been used to prevent outages during severe weather events or supply shortfalls.

Federal Energy Regulatory Commission (FERC)

An independent agency that regulates the interstate transmission of natural gas, oil, and electricity. FERC also regulates natural gas and hydropower projects.

Federal Power Act

A United States law primarily regulating the interstate transmission and sale of electricity and the development of hydroelectric power. It was responsible for creating the body now known as FERC. It was created in 1920 and has been amended several times since. 

Firming requirements

Measures taken to ensure backup power, particularly of renewable energy, such as solar and wind generators. These requirements may require battery storage, ancillary services, or backup generation, such as an added gas plant to produce energy when a solar or wind plant does not.

Frequency

Electricity is supplied to homes and businesses in the United States in the form of alternating current, and frequency is the rate at which an alternating current changes direction, as measured in hertz (Hz). Across the power grid there is a consistent frequency which in the United States is 60 Hz. 

Frequency regulation or response

The ability of the grid to react to a change in

the frequency to bring it back to the normal operating frequency, which is 60 Hz in the United States

  • Inertial response refers to the injection of stored energy, such as battery energy, into the electricity grid to slow down a decline in frequency. 
  • Primary frequency response – The first line of defense against frequency fluctuations that could destabilize the grid. It takes the form of immediate, automatic adjustments in power output by generators and loads in response to frequency deviations in the electric grid.
  • Fast frequency response consists of the combined inertial response and primary frequency response. It injects energy in the seconds immediately following a disturbance to slow frequency decline and establishes the minimum frequency (called the nadir).
  • Secondary frequency response works on a slightly longer time frame than primary frequency response, on the order of 5-15 minutes. It maintains grid frequency and allows for scheduled energy transfers between balancing authorities, which include utilities, regional transmission operators, and other grid management entities.
Hydrogen

Fuel cell that carries energy generated from another source. It can be used in fuel cells to generate electricity with water as the only byproduct, or it can be burned for heat. Hydrogen can be produced from a variety of sources–renewable energy such as solar or wind, or gas plants, nuclear, and other energy sources–which dictate whether it can be considered “clean” or not.

Large load

Historically refers to industrial facilities with high electrical demand. They had long interconnection timelines that allowed for more study time under traditional planning processes. Currently, emerging large loads include cryptocurrency mining, data centers (conventional and artificial intelligence), oil field loads, and hydrogen production facilities. Many have a shorter timeline to interconnect (months vs. years) to the grid. In addition to these rapid timelines, some emerging large loads introduce new challenges to grid operators like rapid demand fluctuations and increased voltage sensitivity.

Load

The amount of power or electricity consumed by a device or system at a given time. It’s the demand placed on an energy source, like a power grid or a battery, by the connected electrical equipment.

Load growth

The increase in the demand for electricity over time. It signifies the rising need for power from various sectors, including residential, commercial, and industrial, and can be driven by factors like population increases, economic development, and the adoption of new technologies like electric vehicles and data centers.

Load shed

A controlled process where a utility company reduces or shuts off power supply to certain areas or customers to balance demand with available supply, preventing a complete system failure. It’s a last-resort measure to maintain grid stability when demand exceeds supply or when there are issues with power generation or transmission.

Locational Marginal Price (LMP)

A way for wholesale electric energy prices to reflect the value of electric energy at different locations, accounting for the patterns of load, generation, and the physical limits of the transmission system.

Loss of Load Expectation (LOLE)

Analysis is typically performed on a system to determine the amount of capacity that needs to be installed to meet the desired reliability target, commonly expressed as an expected value, or LOLE of 0.1 days/year.

Peak demand

The brief periods when electricity consumption is at its highest, often driven by factors like extreme weather or heat events. This is the highest amount of electricity demand for which a grid operator needs to plan.

Peaker Plant

A power plant that is designed to quickly ramp up and provide electricity during periods of high energy demand, such as during hot summer afternoons or cold winter evenings, to meet the increased needs of households and businesses. These plants generally only run during these peak events to supplement regular power generation. 

Performance incentive mechanisms

A regulatory tool that ties a portion of utilities’ earnings to the utilities’ performance on desired regulatory outcomes, offering utilities opportunities to create the programs and services needed to advance emerging priorities.

Photovoltaic

The conversion of light into electricity at the junction of two substances exposed to light. A photovoltaic system employs solar modules, each comprising a number of solar cells, which generate electrical power.

PJM

Pennsylvania-New Jersey-Maryland Interconnection- services 13 states in Midatlantic and Midwest region

Power

The rate of transfer of energy. It’s essentially how quickly energy is being used or converted from one form to another in an electrical circuit. Power is measured in watts (W), which represents one joule (J) of energy per second.

Power Factor

A measure of how efficiently electrical power is being used. It shows how much of the total power flowing in a circuit is actually doing useful work (active power) versus being ”wasted” as reactive power. A power factor closer to 1 means higher efficiency and fewer losses.

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