Glossary
aggregator- a company or agent that combines the energy needs of multiple customers and then buys or provides the energy and services needed.
British thermal unit (Btu)- the basic unit used to measure natural gas; the amount of natural gas needed to raise the temperature of one pound of water by one degree Fahrenheit.
competitive supply business- our growth engine; the portion of our merchant energy business that provides energy and value-added services to wholesale and retail customers located in competitive markets.
dekatherm- a measurement of natural gas; ten therms or one million Btu.
deregulation- in the energy industry, the process by which regulated markets become competitive markets, giving customers the opportunity to choose their supplier.
distribution- the delivery of energy to locations where customers use it-including homes, businesses, office buildings and industrial facilities.
Emerging Issues Task Force (EITF)- a group of financial professionals that advises the Financial Accounting Standards Board (FASB) about standards for reporting new transactions that may be unique and complex.
Federal Energy Regulatory Commission (FERC)- the U.S. agency that regulates interstate energy activities.
full requirements service- a product offering that handles all of a customer's energy needs through a combined service that can include generating or buying energy, managing load and power purchase agreements, scheduling delivery, managing risk, settling accounts and other related services.
generating capacity- the amount of electricity that can be produced by a specified generating plant or utility.
generation- the process of transforming other forms of energy-coal, natural gas, uranium, oil, wind, water or sun-into electricity.
hydrocarbons- fuels-including coal, natural gas and oil-used to produce energy.
independent system operator- a federally regulated organization that manages regional transmission lines to deliver electricity.
load serving- the process of providing wholesale customers with the energy they need to serve their retail customers.
megawatt- one million watts of electricity; enough electricity to light 10,000 100-watt light bulbs.
megawatt hour- one million watts of electricity consumed over one hour; enough electricity to keep 10,000 100-watt light bulbs lit for one hour.
merchant energy business- our nonregulated business, which combines generation from our power plants and energy we purchase with marketing and other services to provide energy solutions to meet the needs of customers throughout North America.
nonregulated business- the portion of our business that operates in competitive markets.
nuclear decommissioning trust fund- a federally mandated fund set up to ensure that nuclear power plant owners put aside enough money to pay for cleaning up and dismantling the plants at the end of their useful lives.
Nuclear Regulatory Commission- the U.S. agency that regulates commercial nuclear power plants and the civilian use of nuclear materials.
origination- the initiation of wholesale energy purchases and sales that may include value-added services along with the energy.
regional transmission organization (RTO)- a group of companies with responsibility for the planning and use of power transmission lines in a geographic region.
regulated business- the portion of our business whose primary operations and prices are set and controlled by the rules and activities of a state utility commission.
retail market- the market in which energy is sold directly to the customers who use it.
Standard Offer Service- in Maryland, the obligation of a utility-such as Baltimore Gas and Electric-to supply electricity to residential customers and as the provider of last resort (POLR) for those customers who have not chosen an alternate supplier.
transmission- the sending of electricity at high voltage, usually on lines running along high towers, from generating plants to substations, where it is then reduced to a lower voltage that is delivered to homes, businesses, office buildings and industrial facilities.
value at risk (VaR)- a statistical measure that helps evaluate risk by showing how much the value of mark-to-market assets or liabilities may change under various circumstances.
watt- the basic unit used to measure electricity; for example, a 100-watt light bulb requires more electricity and provides brighter light than a 60-watt light bulb.
wholesale market- the market in which energy is sold in large blocks to other utilities, distribution companies, electric cooperatives, municipalities and power marketers who then sell or distribute the energy to others.