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h
Heat or Heating Rate
The measure of efficiency in converting input fuel to electricity. Heat rate is expressed as the number of Btu's of fuel (e.g. natural gas) per kilowatt hour (Btu/kWh). Heat rate for power plants depends on the individual plant design, its operating conditions and its level of electric power output. The lower the heat rate, the more efficient the plant.
Hedging
To offset a position with the intent of managing a risk. The process of protecting the value of an investment from the risk of loss in case the price fluctuates. Hedging is accomplished by protecting one transaction with another. A long position in an underlying instrument can be hedged or protected with an offsetting short position in a related underlying instrument.
Hertz
A measure of the "frequency" of an electric current, or the number of times an alternating current (AC) "alternates" direction each second. Frequency is measured as "cycles per second." One hertz equals one cycle per second. The standard frequency in the U.S. is 60 Hz, or 60 cycles per second.
Hourly Peak
The maximum demand for energy from a transmission or distribution system in any hourly period of time.
Hydrocarbon
Organic compound made up of carbon and hydrogen atoms. Heavier fossil fuels, such as coal , have a large ratio of carbon to hydrogen, while natural gas (methane) is the lightest hydrocarbon, with one atom of carbon and four atoms of hydrogen (CH4). Natural gas liquids are heavier than methane but lighter than crude oil. Crude oil is a complex of many hydrocarbons.
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