Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 2 - CORPORATION COMMISSION - FIXED UTILITIES › Article 7 - RESOURCE PLANNING AND PROCUREMENT › Section R14-2-701 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
In this Article, unless otherwise specified:
1. "Acknowledgment" means a Commission determination, under
				  R14-2-704,
				  that a plan meets the basic requirements of this Article.
2. "Affiliated" means related through ownership of voting
				  securities, through contract, or otherwise in such a manner that one entity
				  directly or indirectly controls another, is directly or indirectly controlled
				  by another, or is under direct or indirect common control with another
				  entity.
3. "Benchmark" means to calibrate against a known set of
				  values or standards.
4. "Book life" means the expected time period over which a
				  power supply source will be available for use by a load-serving entity.
5. "Btu" means British thermal unit.
6. "Capacity" means the amount of electric power, measured in
				  megawatts, that a power source is rated to provide.
7. "Capital costs" means the construction and installation
				  cost of facilities, including land, land rights, structures, and
				  equipment.
8. "Coincident peak" means the maximum of the sum of two or
				  more demands that occur in the same demand interval, which demand interval may
				  be established on an annual, monthly, or hourly basis.
9. "Customer class" means a subset of customers categorized
				  according to similar characteristics, such as amount of energy consumed; amount
				  of demand placed on the energy supply system at the system peak; hourly, daily,
				  or seasonal load pattern; primary type of activity engaged in by the customer,
				  including residential, commercial, industrial, agricultural, and governmental;
				  and location.
10. "Decommissioning" means the process of safely and
				  economically removing a generating unit from service.
11. "Demand management" means beneficial reduction in the
				  total cost of meeting electric energy service needs by reducing or shifting in
				  time electricity usage.
12. "Derating" means a reduction in a generating unit's
				  capacity.
13. "Discount rate" means the interest rate used to calculate
				  the present value of a cost or other economic variable.
14. "Docket Control" means the office of the Commission that
				  receives all official filings for entry into the Commission's public electronic
				  docketing system.
15. "Emergency" means an unforeseen and unforeseeable
				  condition that:
a. Does not arise from the load-serving entity's failure to
				  engage in good utility practices,
b. Is temporary in nature, and
c. Threatens reliability or poses another significant risk to
				  the system.
16. "End use" means the final application of electric energy,
				  for activities such as, but not limited to, heating, cooling, running an
				  appliance or motor, an industrial process, or lighting.
17. "Energy losses" means the quantity of electric energy
				  generated or purchased that is not available for sale to end users, for resale,
				  or for use by the load-serving entity.
18. "Escalation" means the change in costs due to inflation,
				  changes in manufacturing processes, changes in availability of labor or
				  materials, or other factors.
19. "Generating unit" means a specific device or set of
				  devices that converts one form of energy (such as heat or solar energy) into
				  electric energy, such as a turbine and generator or a set of photovoltaic
				  cells.
20. "Heat rate" means a measure of generating station thermal
				  efficiency expressed in Btus per net kilowatt-hour and computed by dividing the
				  total Btu content of fuel used for electric generation by the kilowatt-hours of
				  electricity generated.
21. "Independent monitor" means a company or consultant that
				  is not affiliated with a load-serving entity and that is selected to oversee
				  the conduct of a competitive procurement process under
				  R14-2-706.
22. "Integration" means methods by which energy produced by
				  intermittent resources can be incorporated into the electric grid.
23. "Intermittent resources" means electric power generation
				  for which the energy production varies in response to naturally occurring
				  processes like wind or solar intensity.
24. "Interruptible power" means power made available under an
				  agreement that permits curtailment or cessation of delivery by the
				  supplier.
25. "In-service date" means the date a power supply source
				  becomes available for use by a load-serving entity.
26. "Load-serving entity" means a public service corporation
				  that provides electricity generation service and operates or owns, in whole or
				  in part, a generating facility or facilities with capacity of at least 50
				  megawatts combined.
27. "Long-term" means having a duration of three or more
				  years.
28. "Maintenance" means the repair of generation,
				  transmission, distribution, administrative, and general facilities; replacement
				  of minor items; and installation of materials to preserve the efficiency and
				  working condition of facilities.
29. "Mothballing" means the temporary removal of a generating
				  unit from active service and accompanying storage activities.
30. "Operate" means to manage or otherwise be responsible for
				  the production of electricity by a generating facility, whether that facility
				  is owned by the operator, in whole or in part, or by another entity.
31. "Participation rate" means the proportion of customers
				  who take part in a specific program.
32. "Probabilistic analysis" means a systematic evaluation of
				  the effect, on costs, reliability, or other measures of performance, of
				  possible events affecting factors that influence performance, considering the
				  likelihood that the events will occur.
33. "Production cost" means the variable operating costs and
				  maintenance costs of producing electricity through generation, including fuel
				  cost, plus the cost of purchases of power sufficient to meet demand.
34. "Refurbish" means to make major changes, more extensive
				  than maintenance or repair, in the power production, transmission, or
				  distribution characteristics of a component of the power supply system, such as
				  by changing the fuels that can be used in a generating unit or changing the
				  capacity of a generating unit.
35. "Reliability" means a measure of the ability of a
				  load-serving entity's generation, transmission, or distribution system to
				  provide power without failures, measured to reflect the portion of time that a
				  system is unable to meet demand or the kilowatt-hours of demand that could not
				  be supplied.
36. "Renewable energy resource" means an energy resource that
				  is replaced rapidly by a natural, ongoing process and that is not nuclear or
				  fossil fuel.
37. "Reserve requirements" means the capacity that a
				  load-serving entity must maintain in excess of its peak load to provide for
				  scheduled maintenance, forced outages, unforeseen loads, emergencies, system
				  operating requirements, and reserve sharing arrangements.
38. "Reserve sharing arrangement" means an agreement between
				  two or more load-serving entities to provide backup capacity.
39. "Resource planning" means integrated supply and demand
				  analyses completed as described in this Article.
40. "RFP" means request for proposals.
41. "Self generation" means the production of electricity by
				  an end user.
42. "Sensitivity analysis" means a systematic assessment of
				  the degree of response of costs, reliability, or other measures of performance
				  to changes in assumptions about factors that influence performance.
43. "Short-term" means having a duration of less than three
				  years.
44. "Spinning reserve" means the capacity a load-serving
				  entity must maintain connected to the system and ready to deliver power
				  promptly in the event of an unexpected loss of generation source, expressed as
				  a percentage of peak load, a percentage of the largest generating unit, or in
				  fixed megawatts.
45. "Staff" means individuals working for the Commission's
				  Utilities Division, whether as employees or through contract.
46. "Third-party independent energy broker" means an entity,
				  such as Prebon Energy or Tradition Financial Services, that facilitates an
				  energy transaction between separate parties without taking title to the
				  transaction.
47. "Third-party online trading system" means a
				  computer-based marketplace for commodity exchanges provided by an entity that
				  is not affiliated with the load-serving entity, such as the Intercontinental
				  Exchange, California Independent System Operator, or New York Mercantile
				  Exchange.
48. "Total cost" means all capital, operating, maintenance,
				  fuel, and decommissioning costs, plus the costs associated with mitigating any
				  adverse environmental effects, incurred by end users, load-serving entities, or
				  others, in the provision or conservation of electric energy
				  services.