generated: '2026-07-27' method: searched source: https://www.cer-rec.gc.ca/en/data-analysis/glossary/index.html name: Canada Energy Regulator Energy Glossary description: The CER publishes a public energy glossary on its Data and Analysis hub defining the terminology used across its market reports, pipeline throughput and capacity data, tolls and tariffs filings, and Canada's Energy Future projections. Harvested verbatim from the published HTML on 2026-07-27; each entry keeps the anchor id the CER assigns it so a term can be deep-linked back to the source page. language: en license: name: Open Government Licence - Canada id: ca-ogl-lgo url: https://open.canada.ca/en/open-government-licence-canada harvest: url: https://www.cer-rec.gc.ca/en/data-analysis/glossary/index.html http_status: 200 date: '2026-07-27' term_count: 356 related_sources: - url: https://www.cer-rec.gc.ca/en/safety-environment/industry-performance/interactive-pipeline/glossary-terms.html http_status: 200 note: Interactive Pipeline Map glossary. Prose definitions of incident, significant incident, serious injury and significant adverse effect on the environment; not term/definition structured, so not harvested into terms[]. terms: - id: abandonment term: Abandonment definition: Permanently ceasing the operation of a pipeline. - id: aeco term: AECO (Alberta Energy Company) definition: The AECO Hub is the Canadian benchmark price for natural gas on the Nova Gas Transmission Ltd. (NGTL) system, and is located at the Niska, Alberta gas storage facilities. AECO-C has become the virtual trading point representing the price anywhere on the NGTL system. AECO or AECO-C is often used interchangeably with Nova Inventory Transfer (NIT). - id: alkylation term: Alkylation definition: A secondary crude oil refining process which produces alkylate, a very-high octane component used for gasoline blending. - id: allowanceforfundsusedduringconstruction term: Allowance for funds used during construction (AFUDC) definition: The cost of funds used during the period of construction when a utility undertakes to construct its own facilities. The amount of the allowance is included in the total capitalized cost of the asset and is depreciated over the life of the asset after it is placed in service. AFUDC is similar to "Interest During Construction" for unregulated industries except that in determining AFUDC, the cost of equity capital is normally taken into account. - id: alternativeemergingtechnologies term: Alternative or emerging technologies definition: New or emerging technologies that are used as an alternative to existing methods of energy production. Alternative technologies include fuel cells and clean coal technologies, for example. - id: amortization term: Amortization definition: A systematic writing-off of an amount over a period of time. - id: apigravity term: API gravity definition: 'The American Petroleum Institute gravity, or API gravity, express the gravity or density for liquid petroleum products. It is a measure of how heavy or light a petroleum liquid is compared to water: if its API gravity is greater than 10 degrees, it is lighter and floats on water; if less than 10, it is heavier and sinks. The lower the API gravity, the heavier and more viscous the bitumen. Most crude oils have a gravity below 45 degrees.' - id: apportionment term: Apportionment definition: When shippers nominate more oil, or oil product, in a given month than the pipeline is able to transport, shipper volumes are apportioned (reduced) based on the tariff in effect. Apportionment can be driven by several factors, including growing oil supply, increased oil demand, and reduced pipeline capacity. - id: atlanticbasin term: Atlantic Basin definition: Refers to countries residing beside or within the Atlantic Ocean and its related waters. - id: atmosphericdistillation term: Atmospheric distillation definition: The first processing unit in practically all refineries. The atmospheric unit separates (fractionates) crude oil into intermediate products (or fractions) based on boiling point. These products (naphtha, gasoil, and long residue) are further processed at other refinery units. - id: atwacc term: ATWACC definition: After-Tax Weighted-Average Cost of Capital. The after-tax weighted average of the required returns for each source of capital (i.e. common equity, debt, preferred equity). - id: atwaccmethodology term: ATWACC methodology definition: A method for determining the appropriate return, based on the premise that the overall return should be the key element in determining a fair rate of return and should be comparable to the overall after-tax return of other companies of similar risk. - id: asphaltproduction term: Asphalt production definition: Asphalt is produced using the heaviest product (residual or short residue) sourced from the bottom of a vacuum distillation tower. Asphalt is used primarily for road construction and roofing. - id: availablecapacity term: Available capacity definition: The maximum amount of product that can actually flow through a pipeline at any given time. The available capacity of a pipeline usually differs from its nameplate capacity. This difference may for many reasons, such as the type of product being transported, planned or unplanned outages, maintenance, upstream or downstream constraints, pressure restrictions, and outside temperature. See Nameplate capacity. - id: averageservicelife term: Average service life (ASL) depreciation definition: A group method of depreciation whereby the rate of annual depreciation is based on the average service life or average remaining service life of the group. This rate is applied to the surviving balances of the asset group’s costs. - id: backhaul term: Backhaul definition: A "paper transport" of natural gas by displacement against the flow on a single pipeline so that the natural gas is notionally delivered upstream of the point at which it enters the system. - id: basispoint term: Basis point definition: One-hundredth of a percentage point. It is used in reference to interest rates or rates of return on equity. - id: battery term: Battery definition: With respect to electricity a battery is a container consisting of one or more cells, in which chemical energy is converted into electricity and used as a source of power. In the oil and gas industry, a battery refers to a system of tanks or surface equipment that receives natural gas or oil from one or more wells prior to delivery to downstream pipelines or other disposition. A battery may include equipment for separating, measuring or storing oil, gas and water. - id: betaorbetafactor term: Beta or Beta factor definition: A measure of the systematic risk of a security. It estimates the extent to which a stock’s price fluctuates more or less than the market portfolio. A stock with a beta greater than one fluctuates more than the market average and is therefore considered to be of higher risk and may generate a higher return than the market average. - id: bidirectionalpipeline term: Bi-directional pipeline definition: Gas or liquids pipeline systems that are capable of flowing product in both directions. Bi-directional pipelines offer more flexibility than traditional uni-directional pipelines that only flow product in one direction, and are becoming more common in regions where gas flows are changing rapidly. - id: bidfloor term: Bid floor definition: The minimum bid a shipper can make for interruptible transportation service, short-term or other biddable services. - id: billingdeterminants term: Billing determinants definition: Calculated values used in toll design to allocate a pipeline company’s revenue requirement between toll payers. Billing determinants generally account for both volume and distance. - id: bioenergy term: Bioenergy definition: Is energy, usually in form of heat or electricity, derived from the conversion of biomass where biomass may be used directly as fuel, or processed into liquids and gases. - id: bioenergywithcarboncaptureandstorage term: Bioenergy with carbon capture and storage (BECCS) definition: Energy conversion systems that are fueled by biogenic sources and CO2 released by biogenic fuels is captured and permanently stored. - id: biofuel term: Biofuel definition: Renewable fuels made from biomass, and include ethanol, biodiesel, biojet fuel, renewable natural gas, and renewable diesel. - id: biogas term: Biogas definition: The gaseous emissions from anaerobic degradation of organic matter (from plants or animals) by a consortium of bacteria. It is composed primarily of methane. - id: biomass term: Biomass definition: Organic material such as wood, crop waste, municipal solid waste, hog fuel or pulping liquor, processed for energy production. - id: biodiesel term: Biodiesel definition: A diesel fuel substitute manufactured from oils such as vegetable oil or recycled cooking oil and animal fats. - id: bitumenorcrudebitumen term: Bitumen or crude bitumen definition: A thick, sticky form of crude oil that is heavy and viscous so that it will not flow unless it is heated or diluted with lighter hydrocarbons. Bitumen looks much like molasses at room temperature. - id: bituminouscoal term: Bituminous coal definition: A dense coal used primarily as fuel in steam-electric power generation, with substantial quantities also used for heat and power applications in manufacturing and to make coke. It has a higher heat content than lignite or sub-bituminous coal. - id: bluehydrogen term: Blue hydrogen definition: Hydrogen gas (H2) produced the same way grey hydrogen is produced, except the co-produced CO2 is either captured and stored underground or is used to make other products. See Hydrogen, Grey hydrogen, Green hydrogen. - id: bond term: Bond definition: A debt security issued by a borrower that obligates the issuer to make specified payments to the holder over an established period. - id: bondrating term: Bond rating definition: A quality rating assigned by credit rating agencies as an indication of creditworthiness. - id: '>bookvalue' term: Book value definition: The amount at which an item appears in the books of account and financial statements. - id: brent term: Brent definition: A key global crude oil benchmark price. It is a light sweet grade extracted from the North Sea. - id: buildingshell term: Building shell definition: Everything that separates the inside of a building from the outside, including the roof, floor, walls, windows and doors. - id: bullettanks term: Bullet tanks definition: A bullet shaped, above ground pressurized vessel for storing propane, butane, or liquefied petroleum gas. These tanks may be as large as 120,000 U.S. gallons. - id: businessrisk term: Business risk definition: The risk attributed to the nature of a particular business activity (as distinct from financial risk). For pipelines, it typically includes supply, market, regulatory, competitive and operating risks. - id: butane term: Butane definition: Is a hydrocarbon with the molecular formula C4H10. Butane is a gas at room temperature and pressure, but condenses into a liquid when pressurized, such as when stored in bottle or cylinder. - id: capacityelectricity term: Capacity (Electricity) definition: The maximum amount of power that a device can generate, use, or transfer; usually expressed in megawatts. - id: capacitypipelines term: Capacity (Pipelines) definition: The maximum amount of product that a pipeline can safely transport at any given time. See Nameplate capacity, Available capacity. - id: capacityfactor term: Capacity factor definition: Capacity factor of an electricity generating unit is the ratio between its actual electricity production in a given period of time and the maximum possible output over the same period. - id: capandtradeprograms term: Cap and trade programs definition: A cap-and-trade system limits the total level of specified pollutants that can be emitted in a given jurisdiction. Emissions allowances are allocated by various means to polluters which are required to hold permits for their emissions. A market for emission permits is established and market forces act to determine a price for those permits. The benefit of such a system is those that can reduce their emissions at a cost that is lower than the permit price will choose to do so. Those for whom it is more expensive to reduce emissions will prefer to purchase a permit, meaning emission reductions are achieved in an economically efficient manner. - id: capital term: Capital definition: The total funds invested in a company by lenders (debt capital) and by owners (equity capital). - id: capitalassetpricingmodel term: Capital asset pricing model (CAPM) definition: A method used to estimate the cost of equity capital by comparing the return and risk characteristics of an individual company’s shares to the average for all shares in the market. See Comparable earnings test, Discounted cash flow model and Equity risk premium. - id: capitalattractionstandard term: Capital attraction standard definition: One of the Fair Return standards which requires that the return of a regulated utility permit incremental capital to be attracted to the enterprise on reasonable terms and conditions. See Comparable investment standard, Fair return standard and Financial integrity standard. - id: capitalcostallowance term: Capital cost allowance (CCA) definition: ': An income tax deduction allowed for certain fixed assets used in operating a business. CCA is similar in nature to depreciation used for accounting purposes; however, the rates allowed are prescribed by income tax regulations and are not intended to reflect an asset’s useful service life.' - id: capitalstructure term: Capital structure definition: The way in which a business is financed. It is generally expressed as a percentage breakdown of the types of capital employed. For example, a utility could have a capital structure of 50% debt, 15% preferred shares and 35% common equity. - id: capitalization term: Capitalization definition: Capital structure expressed in dollar amounts. - id: capitalizedoverheadorcostofoverheadduringconstruction term: Capitalized overhead or cost of overhead during construction definition: The amount of a company’s overhead expenditures allocated to the cost of acquisition or construction of an asset. The total cost of the asset, including capitalized overhead and AFUDC, is depreciated over the asset’s life. - id: carbonanodes term: Carbon anodes definition: Carbon anodes are the conventional anodes used to produce aluminum. When carbon anodes are used, the reaction frees up oxygen in alumina which then reacts with the carbon in the anode to form CO2. - id: carboncaptureutilizationandstorage term: Carbon capture, utilization, and storage (CCUS) definition: A method of capturing and storing CO2 so that it is not released into the atmosphere, thereby reducing GHG emissions. When utilized, the CO2 is made into another product. When stored, the CO2 is compressed, moved by pipeline or tanker, and stored in some medium, such as a deep geological formation. - id: carbonfootprint term: Carbon footprint definition: The amount of greenhouse gases, mostly carbon dioxide, emitted by something (such as a person's activities or a product's manufacture and transport) during a given period. - id: carbonhub term: Carbon hub definition: A carbon hub is an open access, multiclient CO2 storage facility (either for sequestration or Enhanced Oil Recovery (EOR)) that could achieve low storage costs by using economies of scale. - id: carbonintensity term: Carbon intensity definition: The carbon intensity of a fuel is a measure of the GHG emissions from the extraction, refining, distribution, and use of the fuel. It is measured in grams of CO2 equivalent per megajoule (gCO2e/MJ). - id: carbonneutrality term: Carbon neutrality definition: Refers to the balance of emitting and removing GHGs from the atmosphere, such that the net effect is zero emissions. See Net-zero. - id: carbonppricing term: Carbon pricing definition: 'Carbon pricing is a means of attaching a cost to the right to emit one tonne of carbon dioxide equivalent into the atmosphere. There are two main types of carbon pricing: a carbon tax applied to the carbon content of fossil fuels and a cap-and-trade system. Carbon pricing improves the relative competitiveness of renewable energy sources compared to fossil fuel sources.' - id: cashflowfromoperations term: Cash flow from operations (CFO) definition: The amount of cash generated by a company’s normal business operations. Positive CFO indicates that a company is generating sufficient cash flow to maintain, and potentially grow its operations, without requiring external financing. Also referred to as Operating cash flow. - id: cashworkingcapital term: Cash working capital definition: The amount of cash needed to allow for the time lag between the payment of ongoing operating expenses and the collection of corresponding revenues. See Lead-lag study and Working capital. - id: catalyticcracking term: Catalytic cracking definition: A secondary crude oil refining process where a catalytic agent is used to break down larger heavier, less valuable hydrocarbons such as vacuum gas oil or resid into lighter, higher-value products (gasoline and diesel). It is one of the most important conversion processes in a refinery, allowing it to increase the production of light products at refineries. - id: catalyticreforming term: Catalytic reforming definition: A refining process involving heat, pressure and catalysts in order to convert low octane naphtha from crude oil distillation into high-octane reformate, a premium component for gasoline blending and petrochemical feedstocks. High purity hydrogen is produced as a by-product which can be used for other refinery processes. - id: co2flooding term: CO2 flooding definition: CO2 flooding is a process of enhanced oil recovery, in which carbon dioxide is injected into oil-bearing reservoirs increasing the amount of oil that can be extracted. - id: coalbedmethane term: Coalbed methane (CBM) definition: Natural gas that is trapped within coal seams. CBM production is considered unconventional because the gas is adsorbed within the coal (i.e., the gas is stuck to the sides of coal’s pore spaces and fractures) and can only be desorbed and flow into a well by first lowering pressures. - id: cogeneration term: Cogeneration definition: Production of electricity and another form of useful thermal energy, such as heat or steam, from the same energy source. The byproduct heat from industrial processes can either be used to power an electrical generator, or can be used for industrial purposes. - id: coke term: Coke definition: A carbon-rich solid that is created when heavy crude oil (including bitumen) is heated to high temperatures to crack it into lighter oils and natural gas liquids. Also, a carbon-rich solid that is created when coal is heated to high temperatures in an airless oven to drive off any water, gas, and coal tar inside the coal. Coke is largely burned in blast furnaces during the smelting of steel. - id: coker term: Coker definition: Takes the lowest value bottoms material from the petroleum refining process and cracks it to the point where the remaining yielding consists of only lighter fractions and solid carbon. - id: coking term: Coking definition: When high temperatures are applied to heavy crude oil (including bitumen) to crack it into lighter oils and natural gas liquids while also creating a solid, carbon-rich byproduct called coke. Also, when coal is baked in an airless oven at high temperatures so that the any water, gas, and coal tar inside the coal is driven off and a solid, carbon-rich product called coke remains. - id: commercialsector term: Commercial Sector definition: A broad category including offices, stores, warehouses, government and institutional buildings, utilities, communications, and other service industries. - id: commoditycharge term: Commodity charge definition: A charge applied only to quantities actually transported. Under a Straight Fixed Variable Toll Design it includes only the variable costs of a pipeline. See Demand charge and Straight fixed variable toll design. - id: commoncarrier term: Common carrier definition: A pipeline company that is obligated to ship all product offered to it for transmission, without contract and usually by monthly nominations. In the event that capacity is not available to meet all requests, services are prorated amongst users. See Contract carrier. - id: commonequity term: Common equity definition: The book value of a company’s common shares outstanding including retained earnings or net of accumulated deficits. - id: commonequityratio term: Common equity ratio definition: The ratio of the common equity to the total capital of a company. - id: comparableearningstest term: Comparable earnings test definition: A method used to estimate the cost of equity capital by comparing the returns earned by companies with similar investment risk to that of the regulated utility’s operations. See Capital asset pricing model, Discounted cash flow model, and Equity risk premium. - id: comparableinvestmentstandard term: Comparable investment standard definition: One of the Fair Return standards which requires that the return of a regulated utility be comparable to the return available from the application of the invested capital to other enterprises of like risk. See Capital attraction standard, Fair return standard and Financial integrity standard. - id: competitiverisk term: Competitive risk definition: The business risk that results from competition for customers at both the supply and market ends of a pipeline system. - id: complianceaudit term: Compliance audit definition: An audit undertaken to determine whether a company is complying with legal or contractual provisions relating to its accounts, or with rules, regulations, and prescribed procedures. In the case of a company regulated by the CER, a compliance audit would primarily include the examination of the company’s accounts to ascertain whether the company is complying with the Uniform Accounting Regulations and any orders issued by the Commission of the CER. - id: condensate term: Condensate definition: A liquid like a very light oil, but is extracted from natural gas production. Condensate can be produced at gas wells and at natural gas processing plants (where it is also known as pentanes plus). - id: contractcarrier term: Contract carrier definition: A pipeline company that provides transportation for remuneration to customers who have contracted for the service over a specific period. See Common carrier. - id: contractdemand term: Contract demand definition: Quantity of natural gas specified in a firm service agreement that a pipeline is obligated to be able to deliver on any day at a delivery point or delivery area. - id: conventionalcrudeoil term: Conventional crude oil definition: Crude oil that can flow into a well at commercial rates without the extensive use of technology after the well is drilled, and without altering the natural viscosity of the oil. - id: conventionalnaturalgas term: Conventional natural gas definition: Natural gas that can flow into a well at commercial rates without the extensive use of technology after the well is drilled. - id: donversionorcrackingrefineries term: Conversion or Cracking refineries definition: Includes the processes in a Hydroskimming Refinery plus catalytic cracking and/or hydrocracking units. These conversion processes transform heavy products from distillation (mostly heavy gas oil) into lighter products, suitable for gasoline, jet fuel, and diesel fuel production and petrochemical feedstock. Conversion refineries are able to increase the yield of light, high-value products from the crude oil processed at the refinery. - id: coolingdegreedays term: Cooling degree days (CDD) definition: CDD is an index that represents cooling demand for homes, businesses, etc. CDD is the cumulative number of days in a year for which the mean temperature is above a base temperature. In Canada, Environment Canada uses 18 degrees Celsius and others use 15.4 or 15.4 degrees Celsius as a benchmark. In the US, the base temperature is often 60 or 65 degrees Fahrenheit (16 or 18 degrees Celsius respectively). - id: costofservice term: Cost of service definition: The total cost of providing service, including operating and maintenance expenses, depreciation, amortization, taxes, and return on rate base. For cost of service pipelines, it is approximately the same as its revenue requirement. See Revenue requirement. - id: costofpreferredequitycapital term: Cost of preferred equity capital definition: The effective yield on a company’s preferred shares. - id: costreductionpolicies term: Cost reduction policies definition: Policies which reduce the cost of renewable projects. Such programs include government loan guarantees which reduce finance costs by mitigating risk to the lender as well as tax breaks for renewable projects. - id: crosssubsidization term: Cross-subsidization definition: The provision of financial support to a company’s non-regulated operations by its regulated operations, or vice versa, or between two regulated subsidiaries. - id: crowncorporation term: Crown corporation definition: An enterprise that is wholly owned by the federal or provincial government, and ultimately by the Sovereign of Canada. Crown corporations are established by an act of legislation. Crown corporations can operate at arm’s length, or partially independently, from the government. - id: crudeoil term: Crude oil definition: A mixture of liquid hydrocarbons in underground reservoirs that remains liquid at atmospheric pressure and temperature. Crude oil may contain small amounts of sulphur and other non-hydrocarbons, but it does not include liquids obtained from the processing of natural gas. It is refined into a variety of petroleum products including gasoline, diesel, jet fuel and petrochemicals which are used to make many consumer and industrial products. - id: cyclicsteamstimulation term: Cyclic steam stimulation (CSS) definition: A thermal process to produce in-situ bitumen. Steam is injected into the reservoir through a well over a period of several months, decreasing the bitumen’s viscosity. Later, the steam is turned off and the emulsion of water and bitumen flows back into the well over a period of several months. The process is repeated for the economic life of the well. - id: dailycontractquantity term: Daily contract quantity (DCQ) definition: The maximum amount of energy per day that a customer can move under its transportation contract with a pipeline. - id: debenture term: Debenture definition: A long-term corporate debt obligation that is not secured by any specific asset of the company, but rather is based on the company’s general creditworthiness. - id: debttocapital term: Debt-to-capital definition: A company’s total interest bearing debt, both short and long term, relative to its total capital. Total capital includes total interest bearing debt plus total shareholders’ equity. A higher ratio indicates the company is funded by more debt than equity, implying greater financial risk. - id: deemedcapitalstructur term: Deemed capital structure definition: A notional capital structure used for toll-making purposes that may differ from a company’s actual capital structure. - id: deepconversionorcokingrefineries term: Deep conversion or Coking refineries definition: A more advanced conversion refinery which includes catalytic cracking and/or hydrocracking units, as well as coking units. A coker is able to convert the heaviest byproducts of crude distillation (resid) into lighter product streams. These streams can be further processed by catalytic cracking and catalytic reforming units to produce higher-value end-products. - id: deepcutfacilities term: Deep-cut facilities definition: A gas plant upstream of major gas-pipeline systems that extracts ethane and other natural gas liquids using turbo-expander or absorption technologies. It can extract more ethane than a shallow-cut gas plant, but less ethane than a straddle plant. - id: deferralaccount term: Deferral account definition: For regulatory purposes, generally, a type of account used to record revenues and expenses held in abeyance for future disposition by a regulator. - id: deferredincometaxes term: Deferred income taxes definition: The amount by which income taxes determined on the basis of accounting income exceeds income taxes payable. In a utility, this amount results primarily when capital cost allowance used in calculating taxable income is larger than corresponding depreciation used in calculating accounting income. Deferred income taxes are carried on the balance sheet of a company as a non-current liability. See Normalized income taxes, Flow-through income taxes, and Capital cost allowance. - id: deliverability term: Deliverability definition: Deliverability is the estimated amount of supply available from a given area based on historical production and individual well declines, as well as projected activity. Production may be less than deliverability due to a number of factors, such as weather-related supply interruptions, and shut-in production due to insufficient demand, strategic considerations or economics. - id: deliveryarea term: Delivery area definition: A geographic area within a toll zone that is comprised of multiple delivery points where shippers receive delivery of their natural gas. - id: deliverypoint term: Delivery point definition: The point specified in a service agreement where a pipeline delivers gas to or for the account of a shipper. - id: dilbitdilutedbitumen) term: Dilbit (diluted bitumen) definition: Dilbit is a crude oil blend made by combining produced bitumen with a diluent such as light naphtha. - id: diluent term: Diluent definition: Any lighter hydrocarbon (usually pentanes plus) added to heavy crude oil or bitumen to decrease its viscosity for transport in crude oil pipelines or in rail cars. - id: dilution-of-equity term: Dilution of equity definition: The reduction in book value per share caused by the issuance of additional shares at less than the book value per share of existing shares. - id: demandcharge term: Demand charge definition: A monthly charge which covers the fixed costs of a pipeline under a Straight Fixed Variable Toll Design. The demand charge is based on the daily contracted quantity and is payable regardless of quantities transported. See Straight fixed variable toll design. - id: demandsidemmanagement term: Demand-side management definition: Actions taken by a utility resulting in a sustained reduction in energy demand by its customers. This can reduce or delay new capital investments in power plants, pipelines, or other infrastructure and improve overall system efficiency. - id: depreciation term: Depreciation definition: A non-cash expense charged against earnings to write off the cost of an asset during its estimated useful life. - id: discountedcashflowdfcmodel term: Discounted cash flow (DCF) model definition: A method used for estimating the cost of common equity based on the expected dividend yield of the company’s shares and the expected future dividend growth rate. See Capital asset pricing model, Comparable earnings test and Equity risk premium. - id: discoveredconventionalpetroleum term: Discovered conventional petroleum definition: Oil, gas, and natural gas liquids that have been determined to exist in a pool by the drilling of one or more wells. - id: distanceofhaul term: Distance of haul definition: The distance the product is scheduled to be moved. - id: distillates term: Distillates definition: Hydrocarbon solvents produced from crude oil, which include kerosene, naphtha, and Stoddard solvent. - id: distributedsolar term: Distributed (solar) definition: Solar electricity generation systems that are sited on electricity end-user facilities. They are typically installed on rooftops of residential and commercial buildings. - id: distributionpipelines term: Distribution pipelines definition: A system of relatively small diameter pipes that deliver products to individual homes or businesses, usually within a city. - id: districtheating term: District heating definition: District heating is a system for distributing heat generated in a centralized location through a system of pipes. It can be used for space and water heating, both for residential and commercial purposes. - id: drygas term: Dry gas definition: Natural gas which is low in natural gas liquids content. - id: edmontonparcrude term: Edmonton par crude definition: A light, sweet blend of conventionally produced crude oils in western Canada. It is typically priced at Edmonton, Alberta and is also referred to as Mixed Sweet Blend (MSW). See Mixed sweet blend. - id: emergingtechnologies term: Emerging Technologies definition: See Alternative or Emerging technologies. - id: enduseenergy term: End-use Energy definition: See Secondary energy use. - id: energyefficiency term: Energy efficiency definition: Technologies and measures that reduce the amount of energy and/or fuel required for the same amount of work. - id: energyintensity term: Energy intensity definition: The amount of energy used per unit of activity. Two common ways energy intensity is measured are, energy use per capita, and energy use per unit of GDP. - id: enhancedoilrecovery term: Enhanced oil recovery (EOR) definition: Crude oil extracted from reservoirs once pressures are depleted to a point where natural production is no longer economically possible, even with artificial lifts like pump jacks. This includes additional recovery processes such as pressure maintenance, cycling, water flooding, thermal methods, chemical flooding, and the use of miscible and immiscible displacement fluids. - id: entericfermentation term: Enteric fermentation definition: A ruminant livestock animal digestive process that results in the accumulation and release of methane. - id: environmentalsocialandgovernmentalesginvesting term: Environmental, social, and governmental (ESG) investing definition: Considerations that can be used as criteria alongside financial factors by socially conscious investors to screen potential capital investments. - id: equitycapital term: Equity capital definition: The total of preferred and common equity. See Common equity and Preferred equity. - id: equityriskpremiumofcommonshares term: Equity risk premium of common shares definition: The spread reflecting the difference in risk associated with holding common equity as opposed to debt or preferred shares. The cost of common equity capital is usually greater than the cost of debt or preferred shares. - id: equityriskpremiummodel term: Equity risk premium (ERP) model definition: Family of methods used for estimating the cost of common equity which includes the Capital Asset Pricing Model. It is based on the premise that an investment in common equity carries greater risk than an investment in either debt or preferred shares and, therefore, requires a higher return, or premium, over that required for bonds or preferred shares. See Capital Asset Pricing Model, Comparable Earnings Test and Discounted Cash Flow Model. See Capital asset pricing model, Comparable earnings test and Discounted cash flow model. - id: ethane term: Ethane definition: Is a hydrocarbon gas with the molecular formula C2H6. Ethane is mostly used to make ethylene, which is used to make plastics. - id: extraordinaryretirement term: Extraordinary retirement definition: A retirement of a depreciable asset that results from circumstances not foreseen when determining the asset’s service life for depreciation purposes. - id: fairreturnstandard term: Fair return standard definition: A three-part standard comprised of the comparable investment, financial integrity and capital attraction standards. - id: feedintariffs term: Feed-in tariffs (FITs) definition: Usually offer standardized long-term contracts and administratively set payments, often specific to a particular technology. Standard terms make it easier for small projects and new entrants to qualify. - id: feedstock term: Feedstock definition: Natural gas or other hydrocarbons used to create another product, such as petrochemicals (e.g., ethane is the feedstock to produce ethylene). - id: ffointerestcoverage term: FFO interest coverage definition: Funds from Operations (FFO) over gross interest incurred before subtracting capitalized interest and interest income. See Funds from operations and Interest coverage ratio. - id: ffotototaldebtratio term: FFO to total debt ratio definition: Funds from Operations (FFO) over long-term debt (including amount for operating lease debt equivalent) plus current maturities, commercial paper and other short-term borrowings. - id: fieldgasplant term: Field gas plant definition: A natural gas processing facility that separates a stream of raw natural gas into methane (sales gas or marketable gas) and natural gas liquids, and removes impurities such as water, sulphur, and carbon dioxide. See also Marketable natural gas, Field production (of natural gas liquids), Deep-cut facilities, and Shallow-cut facilities. - id: fieldproduction term: Field production definition: Natural gas liquids produced at natural gas processing plants. Natural gas processing plants remove byproducts and impurities in a stream of raw natural gas. These byproducts are primarily NGLs, while impurities include water, carbon dioxide, and sulphur. Natural gas at the outlet of the plant is known as “sales gas” and is primarily methane. - id: financialintegritystandard term: Financial integrity standard definition: One of the Fair Return standards that requires that the return of a regulated utility enable the financial integrity of the regulated enterprise to be maintained. See Capital attraction standard, Comparable investment standard and Fair return standard. - id: financialleverage term: Financial leverage definition: The proportion of debt in relation to equity in a utility’s capital structure. The higher the long-term debt, the greater the financial leverage. Shareholders benefit from financial leverage to the extent that return on the borrowed money exceeds the interest costs and that shares rise in market value. Leverage also means required interest and principal payments and thus, ultimately, the risk of default (higher financial risk). - id: financialrisk term: Financial Risk definition: The risk inherent in a company’s capital structure. Financial risk increases as the proportion of debt increases in relation to shareholders’ equity. - id: firmtransportationservice term: Firm transportation (FT) service definition: A firm (non-interruptible) gas transportation service which provides for the delivery of gas up to a specific maximum daily quantity. The shipper must pay a monthly demand charge regardless of the quantities transported and a commodity charge for the quantities actually transported. See Demand charge and Commodity charge. - id: fixedassets term: Fixed assets definition: Assets such as land, building, equipment, and machinery which are acquired for use in the operation of a business. - id: fixedcosts term: Fixed costs definition: Costs that remain, at least in the short run, relatively constant and do not vary with throughput. Examples are interest expense, depreciation charges, and property taxes. See Variable costs. - id: fixedtoll term: Fixed toll definition: A toll which does not vary with changes in throughput or expense variances. Fixed tolls are usually based on forecasts of costs and throughput for a test year. See Variable cost-of-service toll. - id: flowthroughincometaxmethodology term: Flow-through income tax methodology definition: A method of estimating income taxes payable for a period based on taxable income as opposed to accounting income. - id: focusedaudit term: Focused audit definition: An audit restricted to a particular management function or operation. See Management audit. - id: fossilfuel term: Fossil fuel definition: Hydrocarbon-based fuel sources such as coal, natural gas, natural gas liquids and crude oil extracted from geological formations. - id: fractionation term: Fractionation definition: The process of separating a stream of natural gas liquids into individual components, or fractions. See Fractionator. - id: fractionationspreadfracspread term: Fractionation spread (frac spread) definition: A “fractionation spread”, or “frac spread”, is the NGL price minus the natural gas price on an energy-equivalent basis. This indicates the potential profit received by gas processors for removing NGL from the gas stream. - id: fractionator term: Fractionator definition: A natural gas liquids processing facility that separates a stream of natural gas liquids into its individual components, or fractions (for example, ethane, propane, butanes, and pentanes plus). - id: freeholdland term: Freehold land definition: Land with its petroleum rights owned by its surface owners. - id: frontierareas term: Frontier areas definition: Generally, the northern and offshore areas of Canada. - id: fugitivegasemissions term: Fugitive gas emissions definition: Releases of methane from leaks in the pipeline system. - id: fulltimeequivalent term: Full-time equivalent (FTE) definition: The equivalent of one full-time employee position in terms of the number of hours worked during a year. An FTE can be made up of allocations from different employee positions. - id: fundsfromoperations term: Funds from operations (FFO) definition: Net income from continuing operations plus depreciation, amortization, deferred income taxes and non-cash items, and interest expense. See FFO interest coverage. - id: gatheringpipelines term: Gathering pipelines definition: A system of mid-sized pipes that deliver products from individual sources of supply, such as well, to storage or processing facilities. - id: generationelectricity term: Generation (electricity) definition: The process of producing electric energy by transforming other forms of energy. Also, the amount of energy produced. - id: geothermalenergy term: Geothermal energy definition: The use of geothermal heat from the earth’s molten core to generate electricity. Also used to describe ground-source heating and cooling (also known as geoexchange or ground-source heat pump). - id: globaladjustment term: Global adjustment definition: See Hourly Ontario energy price. - id: gravitybasedstructure term: Gravity-based structure definition: An offshore oil production platform that is held in place by gravity (as opposed to a floating platform). The Hibernia and Hebron oil platforms in offshore Newfoundland and Labrador are examples of gravity-based structures. - id: greenhousegas term: Greenhouse gas (GHG) definition: A gas such as carbon dioxide, methane, or nitrogen oxide, which actively contributes to the atmospheric greenhouse effect. Greenhouse gases also include gases generated through industrial processes, such as hydroflurocarbons, perflurocarbons and sulphur hexafluoride. - id: greenhydrogen term: Green hydrogen definition: Hydrogen gas (H2) is produced using electrolysis, where electricity is passed through water, separating H2O molecules into hydrogen (H) and oxygen (O). To be considered green hydrogen, the electricity must come from low-emitting energy sources like wind, solar, or hydroelectricity. See Hydrogen, Blue hydrogen, Grey hydrogen. - id: greyhydrogen term: Grey hydrogen definition: Hydrogen gas (H2) produced by separating hydrogen from carbon in natural gas, such as by applying high-temperature steam (also called steam-methane reforming). The process also produces carbon dioxide (CO2), which is vented to the atmosphere. See Hydrogen, Blue hydrogen, Green hydrogen. - id: gridparity term: Grid parity definition: Occurs when an alternative energy source can generate electricity at a cost that is less than, or equal to, the cost of traditional technologies. See Socket parity. - id: gridscalebatterystorage term: Grid-scale battery storage definition: A type of energy storage system that collects energy from the electrical grid or a power plant using electrochemical cells, then discharges energy to provide electricity or other grid services when needed. - id: grossdomesticproduct term: Gross domestic product (GDP) definition: GDP is a measure of economic activity within a country. It is the market value of all goods and services produced within Canada’s borders, normally within a specific time period (e.g., annual). - id: grossplant term: Gross plant definition: The original cost of fixed assets before deducting accumulated depreciation. See Net plant. - id: group1company term: Group 1 company definition: In general, Group 1 companies regulated by the CER are those with more extensive systems and as such are subject to a greater degree of regulatory oversight than Group 2 companies. - id: group2company term: Group 2 company definition: Group 2 companies regulated by the CER tend to be smaller, have fewer shippers and are subject to a lighter degree of regulatory oversight since they are regulated on a complaints basis. - id: heatcontentnaturalgas term: Heat content (natural gas) definition: The amount of energy per volume of the natural gas stream. Natural gas produced from oil and gas wells primarily consists of methane but can also contain natural gas liquids (NGLs) like ethane, propane, and butane. Because NGLs burn hotter than methane on a per volume basis, gas that is “rich” in NGLs has higher heat content than “lean” gas. - id: heatingdegreedays term: Heating degree days (HDD) definition: HDD is an index that indicates heating demand for homes, businesses, etc. HDD is the cumulative number of days in a year for which the mean temperature falls below a base temperature. In Canada, Environment Canada uses 18 degrees Celsius and others use 15.4 or 15.4 degrees Celsius as a benchmark. In the US, the base temperature is often 60 or 65 degrees Fahrenheit (16 or 18 degrees Celsius respectively). - id: heavycrudeoil term: Heavy crude oil definition: Generally, a crude oil that is very viscous and has a density greater than 900 kg/m³, or an API gravity below 25. - id: hedge term: Hedge (or Financial hedge) definition: A hedge is an investment position intended to offset price fluctuations or price risk in the future sale or purchase of a commodity or security. - id: henryhub term: Henry Hub definition: Henry Hub is the pricing point for natural gas futures traded on the New York Mercantile Exchange. The hub is located in Louisiana at the interconnection of numerous natural gas pipelines. - id: heritageassets term: Heritage assets definition: Existing generation (and/or transmission) equipment and facilities which were built well in the past and are largely paid for. - id: hourlyontarioenergyprice term: Hourly Ontario energy price (HOEP) definition: 'Ontario electricity prices are influenced by two major components: the HOEP and the Global Adjustment. Ontario generators sell electricity in the wholesale market where the HOEP is determined. However, most of the generators are covered by contracts and regulations that guarantee specific rates for the electricity they produce. The Global Adjustment is the difference between the HOEP and those guaranteed rates. When the HOEP is lower than the contracted or regulated rates, the Global Adjustment is positive and represents a payment from consumers to generators. When the HOEP is higher than the guaranteed rates, the Global Adjustment is negative and represents a payment from generators back to consumers.' - id: hydraulicallyfractured term: Hydraulically fractured definition: Occurs when fluids are pumped down a well and into a formation at very high pressures until the formation cracks, creating fractures through which oil and gas in the formation can flow into the well. Often done in multiple stages. - id: hydroelectricgeneration term: Hydroelectric generation definition: A form of renewable energy that harnesses the energy in flowing water to generate electricity. This includes large or reservoir hydro and small or run-of-river hydro. - id: hydrogen term: Hydrogen definition: Hydrogen is a naturally occurring element on Earth, normally found in combination with other elements, such as with oxygen in water (H2O) or with carbon in fossil fuels. By applying energy, hydrogen ions can be extracted from water, fossil fuels, or biomass and combined into hydrogen gas (H2), a colourless, odourless, flammable gas that can carry energy or be used as a fuel. See Grey hydrogen, Blue hydrogen, Green hydrogen. - id: hydroprocessing term: Hydroprocessing definition: Any of several chemical engineering processes including hydrogenation, hydrocracking and hydrotreating, especially as part of oil refining. Hydroprocessing is necessary to remove pollutants like sulfur, nitrogen and heavy metals from fuel oils, as well as in the process of catalytic hydrocracking, where large hydrocarbon molecules are cracked into shorter ones that can be used as fuel oils. - id: hydroskimmingrefineries term: Hydroskimming refineries definition: Includes crude distillation and support services as well as secondary processes such as catalytic reforming, hydro-treating and product blending. These refineries have the advantage over topping refineries that they can manufacture low sulphur diesel and heating oil and high-octane gasoline, but they may produce up to half of their output as fuel oil. - id: Immiscibledisplacementfluids term: Immiscible displacement fluids definition: Two or more liquids incapable of being mixed to form a homogeneous substance. - id: incentiveregulation term: Incentive regulation definition: Alternatives or modification to cost of service regulation where a utility’s profit is at least partly dependent on efficiency gains. - id: incrementaltolls term: Incremental tolls definition: Tolls resulting from a toll design methodology that assigns capital and operating costs of new facilities to their own cost pool, separate from the costs of the existing facilities. Tolls are designed so existing shippers pay a toll reflecting the cost of service associated with existing facilities; "new" shippers pay a toll reflecting the cost of service associated with new facilities. - id: incrementaltransportationcost term: Incremental transportation cost definition: ': The variable cost of transporting an additional unit of throughput. See Fixed costs and Variable costs.' - id: indigenouscommunities term: Indigenous communities definition: Refers to a place where Indigenous people live and where some Indigenous political organization has local authority, such as in a reserve. - id: industrialsector term: Industrial Sector definition: This sector includes heavy industry, oil and gas, light manufacturing, forestry, fisheries, agriculture, construction, mining, waste, and others. - id: indigenoustraditionalterritory term: Indigenous traditional territory definition: A traditional Indigenous territory, or land, describes the ancestral and contemporary connections of Indigenous peoples to a geographical area. - id: inertanodes term: Inert anodes definition: Inert anodes avoid the formation of CO2 and have a byproduct of pure oxygen. - id: initialproductionrate term: Initial production rate (IP rate) definition: Generally, the highest monthly production rate for an oil or gas well, often near the start of its production. More specifically, the CER typically uses an average of the first three months of production to determine a well’s IP rate. - id: inpitextraction term: In-pit extraction definition: A technique, currently in development, that involves separating oil sands ore into its component parts within the extraction pit of the operation. - id: insiturecovery term: In situ recovery definition: When bitumen is recovered through wells, generally because the reservoir is too deep to permit surface mining. In situ typically uses steam or solvents such as propane or butane to reduce the bitumen’s viscosity so that it can be recovered. - id: integratedminingupgradingplant term: Integrated mining/upgrading plant definition: A combined mining and upgrading operation where oil sands are mined from open pits. The bitumen is then separated from the sand and upgraded by coking or hydroprocessing. - id: interestcoverageratio term: Interest coverage ratio definition: The number of times that net income for a given year, before interest expense and income taxes, covers the annual interest expense. This ratio is one measure of the creditworthiness of a company. - id: intergenerationalinequity term: Intergenerational inequity definition: Inequity occurring when a generation of customers does not pay, at the expense of another generation, its fair share of the costs incurred by the utility in providing service. - id: interimtollorder term: Interim toll order definition: An order authorizing a company to charge specified tolls until a final order is made. At the discretion of the Commission of the CER, revised tolls may be made applicable from the date the interim tolls became effective. In such case, any difference between the final and interim tolls during that interim period are refunded to, or recovered from, shippers. - id: interruptibletransportationservice term: Interruptible transportation service (IT) definition: Gas transportation service provided only when capacity is available. The shipper only pays a toll for the quantities actually transported. - id: investmentrisk term: Investment risk definition: The total of a company’s business risk and financial risk. See Business risk and Financial risk. - id: isomerization term: Isomerization definition: A chemical reaction in which a lineal molecule is transformed into a molecule with the same atoms in a different arrangement (branched). Isomerization units are used at refineries to transform normal butane into isobutane, a feedstock for alkylation units. - id: iterative term: Iterative definition: A process of repeating and refining the analysis until the end goal is reached. - id: landuselandusechangeandforestry term: Land-use, land-use change and forestry (LULUCF) definition: This category accounts for GHG exchanges between the atmosphere and managed lands, resulting from human-caused land use and land-use changes. - id: laterals term: Laterals definition: Pipelines that tie into a trunk line, generally part of either a gathering or distribution system. See Trunk lines. - id: leadlagstudy term: Lead-lag study definition: A study used to estimate an appropriate cash working capital allowance for inclusion in rate base. The studies estimate the average number of days between payment of ongoing operating expenses and the collection of corresponding revenues. See Cash working capital. - id: levelizedcostofenergy term: Levelized cost of energy (LCOE) definition: The levelized cost of energy (LCOE) determines how much money must be made per unit of energy (ex. MWh of electricity, or any other type of energy) to recover the lifetime cost of the energy system. This includes initial capital investment, maintenance cost, fuel cost, operational cost, and the discount rate. - id: lightcrudeoil term: Light crude oil definition: Generally, crude oil with low viscosity which flows freely at room temperature. There are varying thresholds for the line between light and medium crude oils. Also a collective term used to refer to conventional light crude oil, upgraded heavy crude oil and pentanes plus. - id: lightemittingdiode term: Light emitting diode (LED) definition: A device that emits light when conducting current and is used in electronic displays, indoor and outdoor lighting, etc. LEDs transform most of the energy that they consume into visible light rather than heat. Because of this, LEDs reduce electricity consumption by 85 % compared to incandescent lights and 40 % compared to fluorescent lamps. - id: lighthandedregulatio term: Light-handed regulation definition: Regulatory approval of tolls resulting from arm’s length negotiations, rather than calculated on a cost of service basis, and subject to challenge only under a complaint proceeding. - id: lignite term: Lignite definition: A type of coal with a heat content lower than bituminous or sub-bituminous coal. It is often referred to as brown coal and is used almost exclusively as fuel for steam-electric power generation. - id: liquefiednaturalgas term: Liquefied natural gas (LNG) definition: Liquefied natural gas is natural gas cooled below -162 degrees Celsius (-260 degrees Fahrenheit) so that it condenses into a liquid. This reduces the volume of gas by more than 600 times, allowing for efficient transport via LNG tanker or trucks. - id: loadfacto term: Load factor definition: Generally, the ratio of the average contract quantity to the maximum quantity available to be contracted for the same period, usually expressed over a year and as a percentage. See Utilization rate. - id: managementaudit term: Management audit definition: An audit to assess the economy, efficiency, and effectiveness of management functions and operations. - id: marketbasedrate term: Market-based rate definition: Pipeline tolls based on market conditions rather than on the pipeline’s costs. See Cost of service. - id: marketrisk term: Market risk definition: The business risk that stems from the overall size of the market and the market share that a pipeline is able to capture. - id: markettobookratio term: Market-to-book ratio definition: The ratio of the market price of a common share to its book value. - id: marketablenaturalgas term: Marketable natural gas definition: The volume of gas that can be sold to the market after impurities are removed and volumes used to power surface facilities are subtracted. - id: Materialsurplustosecurity term: Material surplus to security definition: Items included in material and supplies inventory that are in excess of normal requirements for maintenance or the continuous operation of a pipeline. - id: metallurgicalcoal term: Metallurgical coal definition: Anthracite or high grade bituminous coal primarily used in the steelmaking industry because of its high heat content. - id: middledistillates term: Middle distillates definition: Range of medium weight refined petroleum products that include gasoline, diesel, and jet fuel. - id: miscibledisplacementfluids term: Miscible displacement fluids definition: Two or more liquids that will mix together to form a homogeneous substance. - id: miningextractionandupgradingplant term: Mining, extraction, and upgrading plant definition: A combined mining and upgrading operation where oil sands are mined from open pits. The bitumen is then separated from the sand and upgraded by coking or hydroprocessing. - id: mixedsweetblend term: Mixed sweet blend (MSW) definition: A light, sweet blend of conventionally produced crude oils in western Canada with an API gravity of around 40 degrees. It is typically priced at Edmonton, Alberta and is often called Edmonton Par Crude. See Edmonton par crude. - id: modifiedfixedvariabletolldesign term: Modified fixed variable (MFV) toll design definition: A toll design similar to Straight Fixed Variable with the exception that certain fixed costs, for example return on equity and associated income taxes, are shifted from the demand toll to the commodity toll. See Straight fixed variable toll design. - id: multistagehydraulicfracturing term: Multi-stage hydraulic fracturing definition: When a formation is hydraulically fractured over multiple places in a well to create a long zone of reservoir. See Hydraulically fractured. - id: nameplatecapacity term: Nameplate capacity definition: The physical limit to the amount of product that a pipeline can safely carry. Due to operational constraints, it is generally not possible for a pipeline to operate at 100% of its nameplate capacity all the time. See Available capacity. - id: naturalgas term: Natural gas definition: A naturally occurring gas comprised primarily of methane and other hydrocarbons. It is used as a source of energy for heating, cooking, and used in the production electricity. - id: naturalgasliquids term: Natural gas liquids (NGLs) definition: Hydrocarbons recovered from natural gas or condensate as liquids when they are under slightly higher pressures and slightly lower temperatures. These liquids include, but are not limited to, ethane, propane, butanes and pentanes plus. - id: naturalgasreserves term: Natural gas reserves definition: Natural gas reserves are defined as the total amount of remaining marketable gas in discovered pools that can be extracted in current economic conditions. - id: negativeaalvagevalue term: Negative salvage value definition: The amount by which the cost of removing an asset from service exceeds the salvage proceeds. - id: negotiatedsettlement term: Negotiated settlement definition: An agreement between a pipeline company, its shippers and other interested parties concerning issues related to the company’s revenue requirement, tolls, tariffs, and operational matters. Negotiated Settlements are filed with the CER pursuant to the Guidelines for Negotiated Settlements [Folder 157025]. - id: netavailableforexport term: Net available for export definition: Total domestic production of a commodity that would be available for export less its domestic demand. The remainder equals the net available for export. - id: netexports term: Net exports definition: Actual exports minus imports of a commodity. - id: netback term: Netback definition: The effective price to the producer of natural gas, based on the downstream market price less any charges for delivering the gas to market. - id: netbackprice term: Netback price definition: The value producers receive for crude oil and natural gas, usually determined by the market price less transportation costs. - id: netmetering term: Net-metering definition: These programs don’t offer long-term contracts but allow end-users to generate their own electricity and either sell their excess production to the grid, or use it to offset purchased power. - id: netplant term: Net plant definition: Gross plant less associated accumulated depreciation. See Gross plant or Plant in service. - id: netproceeds term: Net proceeds definition: Proceeds from the disposition of an asset or from the issue of securities after deducting the related expenses. - id: netzero term: Net-zero definition: Refers to the balance of emitting and removing GHGs from the atmosphere, such that the net effect is zero emissions. See Carbon neutrality. - id: nitnovainventorytransfer term: NIT (Nova inventory transfer) definition: The Nova Inventory Transfer, or NIT, is the pricing point used for natural gas sourced from the Western Canadian Sedimentary Basin (WCSB). As the natural gas trading hub located in Alberta, NIT is the commercial mechanism that overlays the Nova Gas Transmission Ltd. (NGTL) pipeline network, and is connected to several export markets and storage. - id: nithhdifferential term: NIT-HH differential definition: The difference in price between natural gas sold in Alberta and Louisiana. - id: nomination term: Nomination definition: A precise listing of the quantities of energy to be transported under a contract during a specified time period which a shipper provides to the pipeline. - id: normalizedincometaxes term: Normalized income taxes definition: An estimate of income taxes based on accounting income. The estimate may vary from the income taxes payable because certain revenues and expenses are recognized for account at different times than they are for tax purposes. See Deferred income taxes, Flow-through income taxes, and Capital cost allowance. - id: nuclearfission term: Nuclear fission definition: The process of splitting apart a nuclei which generates energy. - id: oceanenergy term: Ocean energy definition: Includes all forms of energy derived from the sea including tidal energy, wave energy, ocean current energy, salinity gradient energy and ocean thermal gradient energy. - id: olefins term: Olefins definition: A group of petrochemicals which are key in the production of plastics. Olefins are typically produced at crude oil refineries or by steam cracking NGLs at petrochemical facilities. Examples of olefins include ethylene, propylene, butylene and isobutylene. - id: oilinplace term: Oil-in-place (OIP) definition: Is the volume of oil estimated to exist in a reservoir. - id: oilsands term: Oil sands definition: Naturally occurring, loosely consolidated sandstones whose pore spaces are largely filled with bitumen. - id: oilsandsoffgas term: Oil sands off-gas definition: A mixture of hydrogen and light hydrocarbon gases produced when bitumen is upgraded to synthetic crude oil. - id: openseason term: Open season definition: A process in which a pipeline company offers either existing or new capacity to the market and receives bids for that capacity from market participants. - id: operatedoilproduction term: Operated oil production definition: Operated production refers to crude oil production, including bitumen, assigned to the company responsible for operating the well or mine. - id: operatingriskoroperationalrisk term: Operating risk or Operational risk definition: The risk to the income-earning capability of the assets that arises from technical and operational factors. - id: pacificbasin term: Pacific Basin definition: Refers to countries residing beside or within the Pacific Ocean and its related waters. - id: peakdemand term: Peak demand definition: The maximum load consumed during a specified period of time. - id: pentanesplus term: Pentanes plus definition: A liquid like a very light oil that is extracted from natural gas at gas-processing plants and is also produced at refineries. - id: padd term: Petroleum Administration for Defense District (PADD) definition: The United States Petroleum Administration for Defense Districts are five geographical regions for crude oil analysis. PADD I is the East Coast, PADD II is the Midwest, PADD III is the Gulf Coast, PADD 4 is the Rocky Mountains, and PADD V is the West Coast, including Alaska and Hawaii. - id: petroleumcoke term: Petroleum coke definition: A carbon-rich byproduct of crude oil refining. - id: petroleumproduct term: Petroleum product definition: A wide range of products refined from crude oil, such as gasoline, diesel, heating oil, and jet fuel, among others. See Refined petroleum product. - id: photovoltaicsolar term: Photovoltaic (PV) solar definition: Technology that converts sunlight into electricity at the atomic level with solar PV cells. - id: pipeline term: Pipeline definition: A line that is used or to be used for the transmission of oil, gas, or any other commodity. - id: plantaccount term: Plant account definition: An account listed in either Schedule IV of the Gas Pipel=ine Uniform Accounting Regulations or Schedule II of the Oil Pipeline Uniform Accounting Regulations, as appropriate. - id: plantinservice term: Plant in service definition: The costs of fixed assets that are used in the provision of utility service. See Rate base. - id: postagestamprate term: Postage stamp rate definition: For pipelines, a toll that is charged per unit transported regardless of the distance travelled and the points of origin and destination. - id: preferredequity term: Preferred equity definition: The book value of preferred shares outstanding. - id: '>priceearningsratio' term: Price-earnings (P/E) ratio definition: The market price of a company’s common shares divided by its earnings per share. - id: primaryenergydemand term: Primary energy demand definition: Primary demand is the total energy used in Canada, including energy to generate electricity. - id: proforma term: Pro forma definition: Describes a presentation of data, typically financial statements, where the data reflects the world on an "as if" basis; for example, financial statements that are adjusted to reflect a projected transaction. Can also be a sample such as a pro forma contract. - id: propane term: Propane definition: Is a hydrocarbon with the molecular formula C3H8. Propane is a gas at room temperature and pressure, but condenses into a liquid when pressurized, such as when stored in a propane tank. - id: provenoilreserves term: Proven oil reserves definition: Quantities of petroleum that can be estimated with reasonable certainty to be commercially recoverable under current economic conditions, operating methods, and government regulations. - id: puresolvents term: Pure solvents definition: An oil sands production method that injects heated solvents (typically a mixture of natural gas liquids) into a reservoir. - id: ratebase term: Rate base definition: The amount of investment (for example, in a pipeline system) on which the company is authorized to earn a return. It typically includes net plant in service plus an allowance for working capital. - id: realorconstantdollar term: Real or constant dollar definition: Because of inflation, the purchasing power of the dollar changes over time. So that dollar values from one year can be compared to those of another year, they are converted from current (also called nominal or actual) dollars to constant (or real) dollars. This is done by dividing the current dollar data by a price index that measures changes in the prices of goods and services over time. In this way, the impact of inflation is eliminated when comparing data. - id: receiptpoint term: Receipt point definition: The point specified in a service agreement where gas is delivered to the pipeline by or for the account of a shipper. - id: refinedpetroleumproduct term: Refined petroleum product definition: A wide range of products refined from crude oil, such as gasoline, diesel, heating oil, and jet fuel, among others. See Petroleum product. - id: refinery term: Refinery definition: A facility that processes crude oil (conventional or synthetic) to produce refined petroleum products like gasoline, jet fuel, asphalt, lubricants, and diesel. - id: regulatoryrisk term: Regulatory risk definition: The risk to the income-earning capability of the assets that arises due to the method of regulation of the company. - id: regulatorytargetsrrenewableportfoliostandards term: Regulatory targets or renewable portfolio standards (RPS) definition: Adopted by many Canadian jurisdictions, mandate that a certain percentage of electricity should be generated from renewable sources by a certain date. - id: reliabilityelectricity term: Reliability (electricity) definition: The relative performance of any part of an electricity system, which results in electricity being delivered to customers within acceptable standards, in the amount desired, when required. Reliability can be measured by frequency, duration, or magnitude of adverse effects on electricity supply. - id: renewablenaturalgas term: Renewable natural gas definition: Renewable natural gas (RNG) is gas produced from gasses trapped in landfills or from the breakdown of organics in sealed tanks, and then processed to remove impurities. RNG is indistinguishable from natural gas and can be injected in gas networks for its use as a fuel. - id: requestsforproposals term: Requests for proposals (RFPs) definition: Used to solicit proposals for projects. For renewable energy projects, they are typically up to specified capacity targets. RFPs may specify stringent requirements which must be met by the developer. - id: reservelands term: Reserve lands definition: A reserve is a parcel of land where legal title is held by the Crown (Government of Canada), for the use and benefit of a particular First Nation. - id: reservemargin term: Reserve margin definition: Reserve margin, or reserve capacity, is a measure of available capacity over and above the capacity needed to meet peak demand. - id: reserves term: Reserves definition: 'Reserves are the remaining marketable quantities of oil and natural gas expected to be recoverable from known accumulations as based on: analyses of drilling, geological, geophysical, and engineering data; and the use of established technologies in foreseeable economic conditions.' - id: reserves-proven term: Reserves – Proven definition: Proved reserves are those reserves expected to be recoverable with a high degree of certainty. It is likely that the actual remaining quantities recovered will exceed the proved reserves. - id: residentialsector term: Residential sector definition: This sector includes Canadian households. - id: residualoil term: Residual oil definition: Oil remains that are left over after the removal of valuable distillates during the refinement process. - id: resourcesoilandnaturalgas term: Resources (oil and natural gas) definition: The remaining total volume of recoverable oil and natural gas thought to exist. Resources include deposits not economic to extract at current oil and gas prices, but may become economic as prices rise. Resources also include an undiscovered component, which may have been bypassed in current wells or have yet to be found. Resources can also include an additional amount of oil and gas that may be recovered as technology improves beyond current capabilities. - id: resources-marketable term: Resources – Marketable definition: The volume of oil or natural gas recoverable under foreseeable economic and technological conditions and in condition to be used by the market. - id: resourcesultimatepotential term: Resources – Ultimate potential definition: An estimate of all the resources that may become recoverable or marketable when considering geological prospects and anticipated technology. - id: returnonratebase term: Return on Rate base definition: The return which a regulated company earns on its approved rate base. - id: revenuerequirement term: Revenue requirement definition: The total cost of providing service, including operating and maintenance expenses, depreciation, amortization, taxes, and return on rate base. See Cost of service. - id: revenuesupportpolicies term: Revenue support policies (Renewables) definition: Policies which increase projects’ revenue or provide revenue certainty, often through long-term contracts. Long-term contracts or Power Purchase Agreements (PPAs) are a method of support and they underpin the construction of most renewable projects in Canada. Contracts can be awarded through different mechanisms which vary in terms of objectives, level of support and overall design. See Requests for proposals, Feed-in tariffs, Standard offer programs or Net-metering. - id: roeformulaorrh-2-94formula term: ROE formula or RH-2-94 formula definition: Formula to establish the rate of return on common equity for certain CER-regulated pipelines, established in the RH-2-94 Proceeding, as amended to eliminate rounding. - id: rolledintolls term: Rolled-in tolls definition: Tolls resulting from a toll design methodology in which the capital and operating costs of new facilities are added to those of the existing facilities; i.e. there is one cost pool for all facilities. Tolls are designed to recover the annual cost of providing service. All shippers who receive the same service pay the same toll. Tolls only vary according to such factors as volumes and distance. - id: secondaryenergyuse term: Secondary energy use definition: Energy used by final consumers for residential, agricultural, commercial, industrial and transportation purposes. It excludes the energy used to generate electricity, which is included under primary demand. See Primary energy demand. - id: sectorcoupling term: Sector coupling definition: Refers to the idea of integrating multiple energy consuming sectors and end uses with a low carbon electrical grid. - id: servicewells term: Service wells definition: Wells drilled to support oil and gas activity that do not produce oil or gas themselves. - id: shalegas term: Shale gas definition: A form of unconventional gas trapped within shale; a sedimentary rock originally deposited as clay and dead plankton, characterized by extremely low permeability. The majority of gas is found as free gas in the shale’s pore spaces or as adsorbed gas, stuck to the shale’s organic material. - id: shaleoil term: Shale oil definition: A form of unconventional oil trapped within shale; a sedimentary rock originally deposited as clay and dead plankton, characterized by extremely low permeability. - id: shareholdersequity term: Shareholder’s equity definition: A company’s owners’ residual claim on assets after debts have been paid. Equity is equal to a company’s total assets minus total liabilities. A positive shareholders’ equity indicates the company has enough assets to cover its liabilities. If negative, the company’s liabilities exceed its assets, and if prolonged, is considered at risk for insolvency. - id: shallowcutfacilities term: Shallow-cut facilities definition: A gas plant next to, or within, gas field plants or gas pipelines that can extract propane or heavier natural gas liquids (butanes and condensate) using refrigeration technologies. - id: sinkingfund term: Sinking fund definition: The money that must be regularly set aside according to the terms of a long-term debt or preferred share issue, in order to redeem part of the issue prior to or at maturity. - id: mallmodularreactorsmr term: Small modular reactor (SMR) definition: Nuclear power plants that have been scaled down in size and capacity. - id: socketparity term: Socket parity definition: Occurs when an alternative energy source such as solar can generate electricity at a cost that is less than, or equal to, the cost of purchasing power from the grid. See Grid parity. - id: solarenergy term: Solar energy definition: Includes active and passive solar heat collection systems and photovoltaics. - id: solutiongasassociatedgas term: Solution gas (associated gas) definition: Natural gas produced along with oil from oil wells. - id: spotprice term: Spot price definition: The current market price of natural gas for next day delivery. - id: springbreakup term: Spring breakup definition: Drilling activity in western Canada drops sharply during the spring when the ground melts and provinces enforce road bans, making it difficult for rigs to get into the field. - id: standardofferprograms term: Standard offer programs (SOPs) (Renewables) definition: Offer long-term contracts with fixed standard rates agreed upon at the start of the program. SOPs typically offer the same rates for all renewable energy technologies. - id: standalonetolls term: Stand-alone tolls definition: Tolls that would be paid by only those shippers utilizing specific facilities or assets that are physically distinguishable from the existing facilities. They would be based on a revenue requirement independent of that calculated for the rest of the system. See Incremental tolls and Rolled-in tolls. - id: steamassistedgravitydrainage term: Steam assisted gravity drainage (SAGD) definition: SAGD uses pairs of horizontal wells to produce bitumen in the oil sands. Steam is injected into an upper well to heat the bitumen, which then drains by gravity into a lower well and is pumped to the surface. - id: steamoilratio term: Steam oil ratio (SOR) definition: The volume of steam required to produce one unit of oil. - id: straddleplant term: Straddle plant definition: A reprocessing plant located on a gas pipeline. It extracts remaining natural gas liquids from previously processed gas. - id: straightfixedvariabletolldesign term: Straight fixed variable (SFV) toll design definition: A toll design whereby all fixed costs are assigned to the demand toll and all variable costs are assigned to the commodity toll. See Modified fixed variable toll design. - id: strandedasset term: Stranded asset definition: An asset that is not fully depreciated but no longer useful and the regulated owner is no longer able to recover its capital investment. - id: structuralrail term: Structural rail definition: Crude oil that is likely to be exported by rail regardless of a given WCS-WTI differential. It may exist to connect supply and demand sources not connected by a pipeline, for example. - id: subbituminous term: Sub-bituminous definition: A coal whose properties range from those of lignite to those of bituminous coal. Used primarily as fuel for steam-electric power generation. It has a lower heat content than lignite or bituminous coal. - id: supplycost term: Supply cost definition: The estimated cost at which a unit of energy can be produced over a project’s economic life. It includes capital costs associated with exploration, development, and production, as well as operating costs, taxes, royalties and producer rate of return. - id: supplyrisk term: Supply risk definition: The risk that the physical availability of supply could affect a pipeline’s income-earning capability. - id: syntheticcrudeoil term: Synthetic crude oil definition: Synthetic crude oil is made by upgrading crude bitumen, or diluting heavy crude oil into a lighter blend. See Upgrading (bitumen). - id: takeorpay term: Take-or-pay definition: In a take-or-pay contract, the pipeline shipper makes a contractual commitment to pay for a certain amount of pipeline transportation service, even if they do not use it. This creates a strong financial incentive for the shipper to use the pipeline and gives the pipeline company greater certainty. - id: tariff term: Tariff definition: The terms and conditions under which the service of a pipeline are offered or provided, including the tolls, the rules and regulations, and the practices relating to specific services. - id: terminalling term: Terminalling definition: The receiving, storing, and transferring necessary for the receipt or delivery of oil in a pipeline system. - id: testyearortestperiod term: Test year or Test period definition: The 12-month operating period selected to evaluate the cost of service and the adequacy of the tolls in effect or being sought. - id: thermalcoal term: Thermal coal definition: Lignite, Sub-bituminous, or lower-grade Bituminous coal primarily used for power generation or heating purposes. - id: throughput term: Throughput definition: The amount of product moved through a pipeline. - id: tidalpower term: Tidal power definition: Is a subset of ocean energy. Most of the present activities and discussions on ocean energy around the world are related to harnessing power from tides, tidal currents and waves. - id: tightgas term: Tight gas definition: Gas produced from organic-rich shales or from low permeability sandstone, siltstone, limestone or dolostone reservoirs. Tight gas reservoirs typically require the combination of horizontal drilling and multi-stage hydraulic fracturing to achieve economic rates of production. - id: tightoil term: Tight oil definition: Oil produced from organic-rich shales or from low permeability sandstone, siltstone, limestone or dolostone reservoirs. Tight oil reservoirs typically require the combination of horizontal drilling and multi-stage hydraulic fracturing to achieve economic rates of production. - id: timeofusepricing term: Time-of-use pricing definition: Introduces different pricing levels depending on when it is used. Higher prices are charged at peak periods to encourage consumers to shift usage to lower demand hours. - id: toll term: Toll definition: The price charged by a pipeline company for transportation and other services. - id: tolllevelling term: Toll levelling definition: Ratemaking techniques used to defer costs traditionally recovered through tolls in the early years of a pipeline’s life, to later years in order to level out tolls over time. Can also refer to the shifting of tolls within a shorter time period, for example, to gradually phase in a significant toll increase. See Intergenerational inequity. - id: toppingrefineries term: Topping refineries definition: Include only crude distillation plus basic support operations (tankage, recovery facilities for gases and light hydrocarbons, water treatment, power and steam). These refineries can only separate crude oil into various products by boiling point, and have no capability to alter the natural yield from this process. It is the simplest refinery configuration. - id: traffic term: Traffic definition: The commodity being transported and the activity of transportation and other associated dealings with that commodity. - id: transmissionpipelines term: Transmission pipelines definition: A system of relatively large diameter pipes that deliver products over long distances, usually from sources of supply, to different markets. - id: transportationsector term: Transportation sector definition: This sector includes passenger and freight on-road transportation, as well as air, rail, marine, and non-industrial off-road travel, such as recreational all-terrain vehicles and snowmobiles. - id: trunklines term: Trunk lines definition: The main transportation lines of a pipeline system. See Laterals. - id: unabatedfossilfuels term: Unabated fossil fuels definition: Fossil fuel combustion without the application of carbon capture and storage technology. - id: unconventionalnaturalgas term: Unconventional natural gas definition: 'Natural gas that can be produced at commercial rates only after the extensive use of technology. It may be that the gas is held by the matrix material such as coal, ice, or shale; or where the reservoir has an unusually low amount of porosity and permeability. Examples of are: coalbed methane, shale gas and gas hydrates. For comparison, see Conventional natural gas.' - id: uniformaccountregulations term: Uniform Account Regulations (UAR) definition: The accounting regulations for companies under the CER’s jurisdiction. There are separate Uniform Accounting Regulations for gas and oil pipelines. - id: upgradingbitumen term: Upgrading (Bitumen) definition: Higher quality crude oil that is derived from bitumen that has had carbon removed (Coking) or hydrogen added (Hydroprocessing). - id: utilityscalesolar term: Utility-scale (solar) definition: Large-scale solar electricity generation systems that are connected to an electricity grid. They inject the electricity they generate directly into the electric grid. - id: utilizationrate term: Utilization rate definition: System throughput divided by pipeline design capacity. - id: vacuumdistillation term: Vacuum distillation definition: The process of further distilling the heavy products (long residue) left over from atmospheric distillation. Vacuum distillation occurs at a very low pressure, reducing the boiling temperature for heavy compounds. Products from vacuum distillation (vacuum gas oil and residual or resid) are further processed by other refinery units. Residual is used at refineries for asphalt or heavy fuel oil production or as feedstock for coking units. - id: variablecosts term: Variable costs definition: Costs that vary with throughput, such as compressor fuel costs for gas pipelines and power costs for oil pipelines. See Fixed costs. - id: variablecostofservicetoll term: Variable cost-of-service Toll definition: A toll which varies from month to month to reflect actual costs and throughput. Rules prescribed by the regulator specify which costs can be recovered, the accounting principles to be followed in determining the costs, the rate of return allowed on the investment in rate base, depreciation rates, and other parameters. See Fixed toll. - id: variablerail term: Variable rail definition: Crude oil exports shipped by rail that are supported by the WTI-WCS differential, and in response to potential pipeline constraints. - id: variablerenewableelectricityvre term: Variable renewable electricity (VRE) definition: Renewable energy sources that are non-dispatchable due to their methods of energy production, as opposed to a controllable renewable energy source such as dammed hydroelectricity. Wind and solar power are examples of VRE. - id: viscosityreduction term: Viscosity reduction definition: A refinery process that reduces the viscosity of a residual or heavy crude oil. Viscosity reduction is achieved either by partially cracking the residual in a furnace (visbreaking) or by adding a diluent (light oil, naphtha, kerosene or other distillates). - id: voltageregulation term: Voltage regulation definition: The ability of an electrical system to provide near constant voltage over a range of load conditions, necessary to support the transmission of electric power from generators to consumers. - id: wasteheat term: Waste heat definition: Energy lost during the operation of a piece of equipment or machinery. Various processes, such as cogeneration or combined heat and power (CHP) exist to capture and reuse waste heat. - id: westtexasintermediate term: West Texas Intermediate (WTI) definition: A key North American benchmark crude oil price, it’s a light sweet grade of crude oil produced in western Texas with an API gravity of 40 degrees. It is priced at Cushing, Oklahoma and is the deliverable grade for the New York Mercantile Exchange’s oil futures contract. - id: westerncanadasedimentarybasin term: Western Canada Sedimentary Basin (WCSB) definition: The Western Canada Sedimentary Basin (WCSB) is an ancient sedimentary basin 1.4 million square kilometres in size that formed over southwest Manitoba, southern Saskatchewan, almost all of Alberta, eastern and northeastern British Columbia, and the southern Yukon and Northwest Territories. It is the major oil and gas producing region of Canada. - id: westerncanadianselect term: Western Canadian Select (WCS) definition: A blend of Canadian heavy and bitumen sour crude oils mixed with sweet synthetic and condensates with an API gravity of about 21 degrees. It is priced at Hardisty, Alberta and is often used as a representative price for Canadian heavy crude oils. - id: windpower term: Wind power definition: From wind turbines rather than old-fashioned wind mills. Horizontal axis wind turbines are the most common type. As the wind passes the turbines it moves the propeller or fan-style blades. This spins the shaft which is connected to a generator. - id: workingcapital term: Working capital definition: For regulatory purposes, capital employed by the utility to finance its ongoing operations, in addition to the investment in Plant in service. An allowance for working capital is included in the rate base and consists of items such as cash working capital and materials and supplies inventory. - id: writeoff term: Write off definition: The elimination of the recorded amount of an asset or liability for reasons other than the occurrence of a transaction. - id: wtiwcsdifferential term: WTI-WCS Differential definition: The WTI-WCS differential is the price difference between sweet, light crude oil priced at the Cushing, Oklahoma, price hub (WTI) and heavy blends priced at Hardisty, Alberta (WCS). It reflects a quality difference between the heavy-sour WCS and the light-sweet WTI as well as the cost of transportation. Changes in the WTI-WCS differential can arise for a number of reasons including relative changes in refinery demand for heavy crude or a change in the cost of transportation between the two markets. - id: zeroemissionsvehicle term: Zero-emissions vehicle definition: A vehicle that has the potential to produce no tailpipe emissions, including battery electric and plug-in hybrid electric vehicles. - id: '>13pointaverageor13monthaverage' term: 13-Point Average or 13-Month Average definition: An average determined by aggregating the balance at the opening of a year and the balances at the end of each month of the year and dividing by 13.