see weighted average cost of capital

   weighted average cost of gas.

   a price that factors in the risk associated with war – particularly relevant for the oil market.

   a certificate giving the buyer the right, but not the obligation, to buy a specified amount of an asset at a certain price over a specified period of time. Warrants differ from options only in that they are usually listed.

    see round-trip trade

   unit of electrical power equivalent to one joule per second.

   unit of electrical energy equivalent to the power of one watt operating for one hour.

   forward instruments used to hedge against or speculate on weather. Virtually all the instruments are based on degree days, although precipitation swaps and sunshine options are among other possible instruments. see also sunshine option

   the payout of weather-linked bonds, commonly known as nature-linked bonds, is linked to weather conditions. The return on the nature-linked bond is pegged to a suitable meteorological index. A trigger level is defined, which remains active during the exposure period. If this trigger is hit by the index, the issuer of the bond is allowed to default. Suitable indexes might include rainfall or temperature. Insurance companies commonly issue these bonds to hedge against high weather damage claims.

   Western Electricity Co-ordinating Council – a North American Electric Reliability Council for the Western Interconnection.

   the sum of the market returns of each component of a corporate capitalisation, weighted by each component’s share of the total capitalisation.

   price of natural gas at the wellhead.

   US crude oil used as a benchmark for pricing much of the world’s crude oil production. WTI is a relatively low specific gravity ‘intermediate’ crude with low sulphur content (‘sweet’).

   the Western Systems Power Pool, now typically referred to just by its acronym WSPP, is an organisation of more than 300 electricity utilities and power marketers throughout the US operating under an umbrella marketing agreement. The WSPP Agreement is open to power sellers and customers, though it provides only for wholesale and not retail sales. It established the WSPP electricity spot market contract, the standard contract for short-term power trading across the US. The contract traded on a trial basis in May 1987 and was given final approval on July 1991 by the Federal Energy Regulatory Commission.

   1) methane (dry gas) mixed with other hydrocarbons. 2) gas with a high liquid content, which often needs to be dried using a dehydration process. see also dry gas

   energy supplied by one producer or marketer to another for eventual resale to consumers.

   the transmission of gas or electricity to bulk distributors.

   a type of Markov Stochastic process. It refers to changes in value over small time periods. Sometimes, this process is also called Brownian motion.

   an index to indicate the interchangeability of fuel gases and is the best indicator of the similarity between natural gas and a specific propane-air mixture. Since this index relates heating characteristics of blended fuel gases, it can also be used to obtain constant heat flows from gases of varying compositions. The Wobbe Index, however, does not relate flame temperatures, heat transfer co-efficients or temperature gradients.

   (US) the amount of gas in a storage facility above the amount needed to maintain a constant reservoir pressure (the latter amount is known as cushion gas).

   the seller of an option.

   the Weather Risk Management Association is a Washington, DC-based trade association representing the interests of the global weather derivatives market.

    see West Texas Intermediate