Sec. 2. Definitions
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In this Act: The term Administrator means the Administrator of the Environmental Protection Agency. The term applicable baseline means the average of the highest three annual peak demands a load-serving entity has experienced during the 5 years immediately prior to the date of enactment of this Act. The term Commission means the Federal Energy Regulatory Commission. The term load-serving entity means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability, including such entities that are investor-owned, publicly owned, owned by rural electric cooperatives, or other entities.
The term peak demand means the highest point of electricity demand, net of any distributed electricity generation or storage from sources on the load-serving entity’s customers’ premises, during any hour on the system of a load-serving entity during a calendar year, expressed in megawatts (MW), or more than one such high point as a function of seasonal demand changes. The term peak demand reduction means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in megawatts (MW), whether accomplished by— diminishing the end-use requirements for electricity; use of locally stored energy or generated electricity to meet those requirements from distributed resources on the load-serving entity’s customers’ premises and without use of high-voltage transmission; or energy savings from efficient operation of the distribution grid resulting from the use of a Smart Grid.
The term peak demand reduction plan means a plan developed by or for a load-serving entity that it will implement to meet its peak demand reduction goals. The term peak period means the time period on the system of a load-serving entity relative to peak demand that may warrant special measures or electricity resources to maintain system reliability while meeting peak demand. The term Secretary means the Secretary of Energy. The term Smart Grid has the meaning provided by section 1301 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17381 ).
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