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).

These incentivize customers to reduce, increase, or shift their electricity consumption in response to price spikes or grid reliability signals. Most programs encourage utility customers primarily through price incentives to shift electricity consumption from hours of high demand (relative to energy supply) to hours when energy supply is plentiful (relative to demand).

These encompass strategies and programs designed to influence electricity consumption patterns on the customer side of the meter. These initiatives aim to moderate electricity demand through methods such as financial incentives for energy conservation and energy efficiency measures, like improved insulation or the adoption of energy-efficient appliances. 

Refers to electricity generation resources that power grid operators can control and adjust on demand to meet changing electricity needs. These include nuclear, hydropower, battery storage, and thermal power plants.

Small-scale energy generation and storage technologies located near the point where the energy is used, rather than at a centralized power plant. These resources–such as solar microgrids, rooftop solar, and battery storage–can be used to enhance or replace traditional energy sources and can operate independently or be connected to the main grid. 

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.

The ability of a piece of electrical equipment to stay connected to the grid through a short-term disturbance, thus helping keep the grid stable through the event. Inverter-based resources, such as photovoltaic solar arrays, wind turbines, and battery storage, can provide disturbance ride-through services, but require specific design of their control system to do so.

In energy regulation, it is a formal proceeding or official record initiated by a regulatory body (such as a Public Utilities Commission or the Federal Energy Regulatory Commission (FERC)) to address a specific issue or project. It serves as a repository for all submitted documents, evidence, and public comments.

A visual representation of how solar power generation impacts the daily electricity demand curve, particularly in regions with high solar adoption like California. It depicts a dip in net electricity demand during midday due to solar generation, followed by a steep increase in the evening as solar output decreases and demand peaks.

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.

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.

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.

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.

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.

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.

For electricity infrastructure, like power lines and generating facilities, these requirements involve a range of considerations, including safety, environmental impact, and community engagement. Specific regulations vary by location and project type, but generally include distance requirements from existing infrastructure, environmental assessments, and engagement with landowners and stakeholders.