Also known as real or true power, is the portion of electrical power that does useful work in a circuit, such as generating heat, light, or mechanical energy. (see related: reactive power)

A preliminary document used by government agencies to solicit public feedback on potential new rules or reforms before they are officially proposed. It outlines initial ideas, asks specific questions, and serves as the first step in a larger regulatory process. The acronym is frequently used by the Federal Energy Regulatory Commission (FERC). It precedes a formal Notice of Proposed Rulemaking (NOPR) and allows agencies to gauge public opinion and gather information to develop a more informed proposal.

(see also: Essential reliability services) – Supplementary services essential for maintaining the reliable operation and stability of the electrical grid beyond the basic generation and transmission of energy. They are “behind-the-scenes” services that include real-time balancing of electricity supply and demand, maintaining voltage levels, and providing the capability to restart the grid after a widespread outage (black start). 

Is an automated system that continuously monitors the electrical network and adjusts the power output of multiple generators. Its primary functions are to maintain system frequency (60 Hz in United States), in response to changes in the power demand, or load.

California ISO

The maximum amount of power an energy source can physically produce (measured in megawatts/MW), or when referring to an electrical grid, the total amount of electricity that power plants connected to the grid are capable of producing. It’s essentially the total potential output of all the electricity sources, like coal, nuclear, hydro, wind, and solar plants. Meanwhile, energy is the actual output of a source over a particular time period. 

• Capacity accreditation – The process by which grid operators determine the reliability contribution of individual power resources (such as power plants or energy storage systems) to the overall electricity grid. It quantifies how much a resource can reliably contribute to meeting demand, especially during peak times or periods of tight supply, guiding investment decisions for grid stability.
• Capacity auction – A competitive market mechanism where grid operators or utilities purchase energy in the market from electricity generators (such as coal plants, wind, and solar farms) or demand-response participants for future energy needs. Essentially, the generators or demand-response entities provide their energy or technology for future periods of high demand. Capacity market auctions ensure enough electricity is available for future demand at the lowest achievable price for consumers. The goal is to balance reliability with cost by having market participants compete. There are two main types of auctions:
  • Forward capacity auctions: held years before the capacity is needed, giving operators time to upgrade or build facilities. 
  • Incremental auctions: take place closer to the delivery time, adjusting for changes in demand or unexpected generator issues.  

Generally, participants submit sealed bids to offer capacity at specific prices. The auction ends when the total capacity offered matches the region’s needs, and a single clearing price is set for all commitments.  

• Capacity costs – The charges associated with ensuring a sufficient supply of power to meet peak demand. These charges cover the cost of maintaining and operating power plants, transmission infrastructure, and other components needed to meet the highest levels of electricity usage, essentially guaranteeing power is available when it’s most needed.
• Capacity market – A type of wholesale market designed to ensure there will be enough power generation available in the future to meet peak demand and maintain grid reliability. Generators receive payments for promising to be available to produce electricity when needed, even if they aren’t running all the time. Functions sort of like an insurance policy, in that generators are paid for the promise to show up with power during times of high demand. This type of market is a method to maintain resource adequacy. Not all markets use this method (example: Electric Reliability Council of Texas (ERCOT).

An energy source that generates electricity with zero- or extremely low-carbon emissions, and can do so when needed, regardless of weather conditions. They include enhanced geothermal energy and advanced nuclear technologies. They also can include solar or wind paired with battery storage to provide on-demand power supply regardless of weather conditions or time of day. 

Refers to a regulatory approach for connecting new power generators to the electrical grid, notably used in Texas (ERCOT). This approach allows new generators to connect expeditiously with minimal upfront transmission upgrades. However, the grid operator retains the right to curtail their output if transmission constraints arise. This contrasts with approaches where developers pay for upgrades prior to connection. (see Energy-only interconnection approaches)

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).

Power that does not perform useful work but is used to establish and maintain electromagnetic fields that are needed to generate, transmit, and convert electric power in the alternating current network. A shortage of reactive power can cause voltage to decline. (See also: voltage support)

A characteristic of the whole electricity system to describe its ability to consistently deliver electricity to consumers without interruption, even through grid disturbances. Reliability comes down to having sufficient generating resources to meet demand and a functional operational grid system.

An agreement initiated by an RTO or ISO with a power plant, keeping it in operation temporarily for reliability purposes.

The ability of the grid to ride through extreme events, recover quickly, and support other critical systems (e.g., transportation, health care, public safety etc.).

An assessment of whether the current or projected resource mix is sufficient to meet capacity and energy needs for a particular grid. The resource mix includes all resources able to provide capacity and energy to the system. Adequacy assessments are used to identify potential shortfalls in the availability of resources across different time frames; from long-term planning (5 to 20+ years) to seasonal and day-ahead assessments.

 (see also: ISO) – A non-profit organization that manages the electricity transmission system in a specific region, ensuring reliable and efficient electricity delivery. RTOs operate the high-voltage electricity grid, facilitating the movement of power from generating plants to substations and ultimately to consumers. They also oversee competitive wholesale electricity markets.