Heating degree days are used in energy analysis as an

Info icon This preview shows pages 7–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Heating degree days are used in energy analysis as an indicator of space heating energy requirements or use. Heat Rate a measure of efficiency of a power generating unit. Heavy Crude Oil Has an aPI gravity of less than 28 degrees. the lower the aPI gravity, the heavier the oil. Hedge the reduction of risk by covering anticipated commit- ments in the future through a swap, future or option contract, as a means to protect energy traders from unexpected or adverse price fluctuations. Henry Hub the standard delivery point for the nyMEX natural gas futures contract in the Us (pipeline hub located on the Louisiana Gulf Coast) where a number of interstate and intrastate pipelines interconnect through a header system operated by sabine Pipeline. Historic Volatility the change in the absolute value of a commodity or instrument over a certain period, expressed as a per- centage of the lowest price recorded in that period. Hub a geographic location where multiple participants trade services. Hydropower Plant a plant in which the turbine generators are driven by falling water. I ICE the Intercontinental Exchange. IEA International Energy agency Index Swap In the natural gas market in north america, index swaps are often used to hedge against location price risk (a form of basis risk). the seller receives a fixed, or other- wise determined, price and pays the buyer the pub- lished index value for natural gas from a specified location. Integrated Energy Company an integrated energy company operates in all areas of the energy value chain. Interruptible Gas Gas sold to customers with a provision that permits curtailment or cessation of service at the discretion of the supplier. In-The-Money Option an option which has intrinsic value. a put option is in-the-money when its strike price is above the value of the underlying futures contract. a call option is in- the-money when its strike price is below the value of the underlying futures contract. IOC International oil Company. IPP Independent power producer—Unregulated power generators which, unlike utilities, have no franchised retail service territories. Even a plant built by an investor- owned utility to serve its native retail load is not an IPP. It’s still a utility plant. also, utilities that form affiliates and build outside of their territories can be IPPs. ISO Independent system operator. an independent, federally regulated entity established to coordinate regional transmission in a non-discriminatory manner and ensure the safety and reliability of the electric system. K Kilowatt one kilowatt equals 1,000 watts. abbreviates to kW. Kilowatt-Hour (KWh) the basic unit for pricing electric energy, equal to one kilowatt of power supplied continuously for one hour (or the amount of electricity needed to light ten 100- watt light bulbs for one hour). one kWh equals 1,000 watt-hours. one kWh = 3.306 cu ft of natural gas.
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
- 7 - Landed Cost, Crude Oil Moving Average L Landed Cost, Crude Oil the price of crude oil at the port of discharge, includ_ ing charges associated with purchasing, transporting, and insuring a cargo from the purchase point to the port of discharge. the cost does not include charges incurred at the discharge port (e.g., import tariffs or
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern