All > Science > Energy > Energy Market
An entity’s ability to obtain funds to meet its cash flow obligations, with consideration for the speed with which such funds can be obtained. This is among the main factors considered in credit rating or scoring.
- Browse Related Terms: Ancillary services, Automatic generation control, availability, Baseload Unit, Capacity factor, Control area, Financial liquidity, Fuel-adjustment clause, Installed capacity, Load pocket, Mothballed capacity, Peaking capacity, Plant factor, Ramp rate, Reliability must run (RMR), Retail unbundling, Voltage reduction, Wholesale electricity markets
All > Science > Energy > Energy Market
Markets where financially settled products (instruments) are traded (bought and sold). In commodity markets, it is markets where financially settled commodity derivatives are traded. Nymex is purely financial, where any residual delivery obligations on the futures contracts are matched and settled physically off-exchange by the matched parties. ICE trades both physically and financially settled products. Brokers also do both physical and financial transactions. Financial markets are also a term used for capital markets where stocks, bonds, T-Bills, foreign exchange and other financial instruments are traded.
- Browse Related Terms: Collateral, Credit, Credit risk, Financial markets, Financial transaction, Financially settled, IntercontinentalExchange (ICE), Margin requirement, Open outcry, Price discovery, Risk Management
All > Science > Energy > Energy Market
A transaction that involves only the exchange of money, with no physical delivery.
- Browse Related Terms: Collateral, Credit, Credit risk, Financial markets, Financial transaction, Financially settled, IntercontinentalExchange (ICE), Margin requirement, Open outcry, Price discovery, Risk Management
All > Science > Energy > Energy Market
A contract that entitles the holder to receive or pay compensation for transmission charges that arise when grid congestions cases price differences due to the redispatch of generators.
- Browse Related Terms: 12-month strip, Arbitrage, Delivery Point(s), Financial transmission right, Forward price curve, Futures market, Henry Hub, Locational marginal price, long, Mark-to-market, Physical basis, Reference price, Short position, Spark spread, Uplift, West Texas Intermediate (WTI)
All > Science > Energy > Energy Market
Consummated exclusively by an exchange of funds, without the potential of exchange – or actual exchange – of commodities or other things of value.
- Browse Related Terms: Collateral, Credit, Credit risk, Financial markets, Financial transaction, Financially settled, IntercontinentalExchange (ICE), Margin requirement, Open outcry, Price discovery, Risk Management
All > Science > Energy > Energy Market
Energy network service assuring market participants of a specified quality and quantity of service under normal operating conditions. May ascribe rights to specific receipt and/or delivery points for service. Network facilities are generally designed, installed, and dedicated to meeting firm transportation service requirements.
- Browse Related Terms: Automated mitigation procedure, City Gate, Congestion costs, Electric utilities, Firm transportation, Local distribution company (LDC), Locational installed capacity, North American Electric Reliability Council (NERC), open access, Peakshaving LNG facility, Transmission, Usage charge
All > Science > Energy > Energy Market
The requirement that an electric system be planned and operated so that it can safely withstand the loss of the largest single system element (i.e. power plant or transmission line).
- Browse Related Terms: Capacity margin, congestion, Critical notices, Curtailable load, First Contingency Reliability Criteria, Independent system operator (ISO), Interruptible or nonfirm transportation, Intertie, Load-serving entity (LSE), Loop flow, Marginal electric generating unit, Native load, Operating reserves, Outage, Regional Transmission Organization (RTO), Transmission loading relief (TLR)
All > Science > Energy > Energy Market
Buying or selling a commodity at a fixed price. For example, fixed physical gas prices are used to form indices at some locations; and fixed basis prices plus Nymex settled prices are used to form price indices at other locations.
- Browse Related Terms: Basis Swaps, Credit rating, Daily (or Next-Day) Indexes, Debt financing, Electronic trading platform, Fixed price transactions, Floating price transactions, index, Market, Market structure, Power marketer, Project financing, Spread trading, Swaps
All > Science > Energy > Energy Market
Buying or selling a commodity at a price that is not fixed and will be set by mutual agreement, usually based a published price index.
- Browse Related Terms: Basis Swaps, Credit rating, Daily (or Next-Day) Indexes, Debt financing, Electronic trading platform, Fixed price transactions, Floating price transactions, index, Market, Market structure, Power marketer, Project financing, Spread trading, Swaps
All > Science > Energy > Energy Market
Use of LNG tanker ships for LNG storage, rather than simply for transportation, to take advantage of temporal and geographic LNG price differences.
- Browse Related Terms: Basis, Daily Deals, Day-ahead markets, Floating Storage, National balancing point (NBP), Real-time market, Single settlement system, Spot market, Two-settlement system, Virtual bidding, Zeebrugge
All > Science > Energy > Energy Market
The set of prices of contracts for delivery of a good over a span of time in the future. For example Nymex deals in natural gas futures contracts for 72 months in the future. Each of the 72 contract months end-of-day settlement price forms the forward curve for Nymex gas futures for the day.
- Browse Related Terms: 12-month strip, Arbitrage, Delivery Point(s), Financial transmission right, Forward price curve, Futures market, Henry Hub, Locational marginal price, long, Mark-to-market, Physical basis, Reference price, Short position, Spark spread, Uplift, West Texas Intermediate (WTI)
All > Science > Energy > Energy Market
A provision of a power sales agreement or rate schedule that allows for the electricity price to be changed based on changes in the price of the fuel used to generate the power.
- Browse Related Terms: Ancillary services, Automatic generation control, availability, Baseload Unit, Capacity factor, Control area, Financial liquidity, Fuel-adjustment clause, Installed capacity, Load pocket, Mothballed capacity, Peaking capacity, Plant factor, Ramp rate, Reliability must run (RMR), Retail unbundling, Voltage reduction, Wholesale electricity markets
All > Science > Energy > Energy Market
A market in which contracts for future delivery of a commodity or a security are bought and sold. Nymex is the primary futures market for energy commodities in the United States.
- Browse Related Terms: 12-month strip, Arbitrage, Delivery Point(s), Financial transmission right, Forward price curve, Futures market, Henry Hub, Locational marginal price, long, Mark-to-market, Physical basis, Reference price, Short position, Spark spread, Uplift, West Texas Intermediate (WTI)