Grid Glossary

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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.

PUC

Sometimes also called a Public Service Commission (PSC), is a state-level governmental agency that regulates utilities like electricity, gas, and water. PUCs ensure that these essential services are provided fairly, reliably, and at reasonable prices, often by overseeing monopolies and protecting consumers.

Reactive power

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)

Reliability

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.

Reliability must-run (RMR) contract

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

Resilience

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.).

Resource adequacy

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.

RTO

 (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.

Virtual Power Plant

A network of distributed energy resources—like rooftop solar panels, electric vehicle chargers, and smart water heaters—that work together to balance energy supply and demand on a large scale. They are usually run by local utility companies that oversee this balancing act.

Voltage

Often described as the “pressure” that pushes electric current through a circuit. It’s measured in volts (V) and is essentially the energy per unit charge. Think of it like water pressure: the higher the voltage, the greater the “push” on electrons, and the more current can flow.

Maintaining stable voltage on the grid  is critical to keeping the lights on and avoiding equipment damage. Voltage is not consistent across the grid, though it is locally constant, with higher voltages used for longer transmission lines and lower voltages used at the distribution level.

  • Voltage support – The ability of a power system to maintain stable voltage levels within a desired range, even during fluctuations or disturbances. It’s crucial for ensuring a reliable electricity supply and preventing equipment damage. Generally, it is achieved by a grid maintaining reactive power via generating units or other equipment absorbing or adding reactive power.

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