Week 3 - Chapter 4 Flashcards
What is direct current (DC)?
A type of electrical current that flows in one direction only.
Used in batteries and electronic devices.
What is alternating current (AC)?
A type of electrical current that reverses direction periodically.
Commonly used in households and industries.
What is the purpose of transformers?
To change the voltage level of alternating current in power systems.
Essential for efficient transmission of electricity over long distances.
What is a busbar?
A conductive material that connects multiple circuits in electrical systems.
Used for distributing power within substations.
What is the difference between transmission and distribution?
Transmission refers to moving electricity over long distances, while distribution involves delivering electricity to end users.
Transmission systems operate at high voltages, distribution systems at lower voltages.
What is a load in electrical terms?
The amount of electrical power consumed by devices or systems.
Measured in watts (W).
What does frequency refer to in electrical systems?
The number of cycles per second of alternating current, measured in hertz (Hz).
Standard frequency is often 60 Hz in the Americas and 50 Hz in Europe.
What is voltage?
The electric potential difference between two points.
Measured in volts (V).
What does locational marginal price (LMP) represent?
The price of electricity at a specific location, considering supply and demand.
Influences market trading and pricing strategies.
What is base load?
The minimum level of demand on an electrical grid over a period of time.
Typically met by power plants that run continuously.
What is peak load?
The maximum level of demand on an electrical grid during a specific time.
Often requires additional generation capacity to meet demand.
What is a load duration curve?
A graphical representation of the load versus time over a specific period.
Helps in planning and managing power supply.
What is capacity factor?
The ratio of actual output of a power plant to its potential output over a period.
Indicates the efficiency of the plant.
What are spinning reserves?
Backup power resources that can be activated quickly to meet sudden demand.
Essential for grid reliability.
What are ancillary services?
Support services necessary for maintaining grid reliability and stability.
Includes frequency control and voltage support.
What does the Public Utility Holding Company Act (PUHCA) regulate?
The organization and operations of public utility holding companies.
Aimed at reducing monopolistic practices.
What are investor-owned utilities (IOUs)?
Privately owned companies that provide electric service to customers.
Operate for profit and are regulated by state commissions.
What are publicly owned utilities (POUs)?
Utilities owned by local or state governments.
Operate at cost and serve local communities.
What is cost-of-service recovery (COSR)?
The method by which utilities recover the costs of providing service to customers.
Ensures financial stability for utility operations.
What is a rate base?
The value of property or assets used by a utility to provide service.
Used to determine allowable revenue for utilities.
What are stranded costs?
Costs incurred by utilities that cannot be recovered due to market changes.
Often arise during deregulation.
What is weighted average cost of capital (WACC)?
The average rate of return a company is expected to pay to its security holders.
Used in investment decisions and financial modeling.
What do public utilities commissions (PUCs) do?
Regulate the rates and services of public utilities.
Ensure fair pricing and service quality.
What is decoupling in utility regulation?
A mechanism that separates a utility’s profits from the amount of energy sold.
Encourages energy conservation.
What is interconnection in energy systems?
The linking of different power systems for electricity exchange.
Enhances reliability and efficiency.
What is reserve margin?
The difference between available capacity and peak demand.
Ensures reliability during peak periods.
What does intermittency refer to?
The variability of power generation sources like wind and solar.
Challenges grid stability and reliability.
What is debt service coverage ratio (DSCR)?
A measure of a company’s ability to pay its debt obligations.
Calculated as net operating income divided by total debt service.
What are confidence scenarios?
Predictions used in risk management to assess potential future outcomes.
Important for strategic planning.
What is a hurdle rate?
The minimum rate of return required on an investment.
Used in capital budgeting decisions.
What is net present value (NPV)?
The difference between the present value of cash inflows and outflows.
Used to assess profitability of an investment.
What does internal rate of return (IRR) measure?
The discount rate that makes the net present value of an investment zero.
Helps compare the profitability of investments.
