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Energy Market Acronyms and Terms with Definitions

|AMR Meter |Automated meter read meter – used for large commercial natural gas accounts to measure daily and inter-day usage |

|Ancillary Costs |PJM and other grid operators must match supply with demand at all times in order to avoid blackouts. Ancillary charges cover the |

| |cost of grid reliability and keeping supply and demand balanced across the transmission system. |

|ARR/FTR |Auction Revenue Rights/Financial Transmission Rights |

|ATC |Around-the-clock |

|Basis |The amount that natural gas suppliers charge for interstate pipeline costs (transportation) and supplier margin |

|Block Index |An electric purchase structure whereby a buyer/user purchases electricity at hourly rates and purchases wholesale fixed rate |

| |block purchases to stabilize portions of the electric price |

|Block Purchase |Amount of power purchased in MWs for a defined time of the day (on peak, off peak or RTC) and term length (1 month, summer |

| |period, 1 year, 2 years, etc.) at a fixed rate per MW. Block purchase of $60MW for 1MW RTC for 1 year is 1,000 kilowatts |

| |purchased at $.06kWh for each hour for one year. |

|Broker |Party that sells or arranges the sale of energy commodity and is directly compensated by an energy supplier |

|Capacity |Amount of electric generation available |

|CCF |One hundred cubic feet = 100CF |

|DAM |Day Ahead Market – Hourly electric prices set a day ahead of time, an alternative to buying on the real time hourly market. |

|Default Rate |See utility default rate |

|Distribution Cost |Local utility charges for delivering electricity or natural gas through the local distribution system – represents a portion of |

| |the total electric and/or gas bill. |

|DOE |Department of Energy |

|Deka therm |Quantity of natural gas = 10 therms, unit quantity priced on NYMEX, NYMEX trades in 10,000 dth quantities |

|(dth) | |

|Electric Demand |Amount of electricity that flows to a customer meter at a point in time. Measured in Kilowatts (kw) |

|ELRP |Emergency Load Response Program |

|ERCOT |RTO that manages power grid in Texas |

|ESCO |Energy Service Company |

|Forward Market |Prices of energy today for delivery in the future – Prices available on futures exchanges such as NYMEX |

|Fuel Oil |Diesel fuel (undyed) used for heating |

|Full Requirements |Contract structure whereby supplier provides all usage requirements for a specific term at a fixed price |

|Hedge |Fixed rate commitment for future delivery of energy |

|Independent Consultant |Energy consultant who is objective and is compensated directly and solely by the end user and not the supplier |

|Interval Meter |Meter used to measure electric flow every 15 minutes. Usually required for large commercial electric accounts and for all |

| |standalone accounts for demand response and hourly priced contracts. |

|Kilowatt (kw) |One thousand watts – metric for measuring the electricity flow to a customer meter |

|Kilowatt Hour (kWh) |The amount of kilowatts used in one hour. If a customer uses 100kw an hour for two hours the total kilowatt hours for the two |

| |hour period would be 200 kWh |

|LMP |Local Marginal Price – PJM hourly energy price for a specific delivery zone within PJM |

|LNG |Lower Natural Gas |

|Low Sulphur Diesel |Fuel grade typically used for heating and over the road vehicles |

|LSE |Load Serving Entity – Entity qualified by PJM to provide electric supply to the PJM system |

|LSP |Licensed Service Provider – Energy service provider licensed with a state/region who provides access to wholesale energy market |

| |sand billing services for end users/buyers |

|MCF |Thousand cubic feet = 1MCF = 1Dth = 10 therms |

|MEA |Maryland Energy Administration |

|Mega Watts (MW) |Equal to 1000 kw – Quantity used to trade in wholesale markets |

|NERC |National Energy Regulatory Commission – Overseas the RTO’s around the country |

|NYISO |Organization that manages the power grid in New York City and State |

|NYMEX |New York Mercantile Exchange – An organization that provides markets and market clearing house for trading futures such as |

| |electricity, natural gas, fuel oil and other commodities |

|Off Peak |Per NERC definition – all times not covered by On Peak (see below) |

|On Peak |Per NERC definition – electricity consumed between 7:00 a.m. – 11:00 p.m. M-F excluding 6 FERC holidays |

|OPC |Office of People’s Counsel |

|PJM |Organization that manages the power grid in the mid-Atlantic region. Covers from Virginia to New Jersey to Illinois |

|PLC |Peak Load Contribution – Similar to demand, a measure of an electric account’s demand relative to the entire RTO demand during |

| |RTO peak load periods. An account’s PLC in PJM is determined by its demand during the 5 highest peak hours of the PJM system |

| |(each hour occurring on a different day) |

|PLC Predictor |Service provided by EnerNOC to predict peak load hours with PJM |

|PoLR |Provider of Last Resort – Electric supply rate charged by local electric utility for end users who do not contract with a |

| |supplier, used interchangeably with SOS and default rate |

|Portfolio Block Index |Electric procurement and risk management program developed by EnerNOC for aggregations/buying consortiums such as governments, |

| |schools, hospitals, etc. |

|PSC |Public Service Commission |

|Reverse Auction |Process where suppliers bid on full requirements fixed rate contracts through internet based auction process |

|RTC |Round the Clock – term used to describe 24 hours in a day time period that lock purchase are made |

|RTO |Regional Transmission Organization – Organization that manages a regional power grid – PJM, NYISO or ERCOT |

|SOS |Standard offer Service – see utility default rate |

|SRC |South River Consulting |

|Supplier |Licensed energy supplier who provides energy supply in deregulated markets |

|Supplier Margin |Amount of profit suppliers earn after hedge costs on fixed rate full requirement contracts |

|Supply Cost |Cost of energy commodity delivered to the local utility on a buyer’s behalf. For electricity, supply cost includes energy, UCAP,|

| |transmission, congestion, supplier margin and other related costs. For natural gas, supply cost includes commodity cost, |

| |transportation (interstate pipeline costs) and supplier margin. |

|Therm |Measure of quantity of natural gas – 1 therm = 100,000 BTU’s |

|Trans Cap |Transmission Capacity – Amount of transmission capacity (in KW or MW) that supplier has to purchase as a component of electric |

| |supply sold to end users |

|UBI |Utility Bill Information – a web based utility bill tracking and management tool offered by EnerNOC |

|UCAP |Unforced Capacity Obligation – Amount of generation capacity (in KW or MW) that supplier has to purchase as a component of |

| |electric supply sold to end users |

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