A (10) | B (1) | C (9) | D (15) | E (8) | F (3) | G (5) | H (3) | I (8) | K (2) | L (4) | M (11) | N (6) | O (3) | P (16) | R (5) | S (10) | T (5) | U (1) | W (6) | Z (1)
Term Definition
Debt Service Coverage Ratio (DSCR)

The ratio of net operating income to the amount of money that is required to make regular debt payments. A DSCR of greater than one means that the project is taking in enough income to cover payments on loans. A number of less than one means that the project will have to dip into reserves or other financial resources to cover debt payments. Lending institutions generally frown on lending to projects that have a DSCR of less than one.

Debt vs. Equity

An amount of money borrowed and owed by one party to another is considered debt. For example: bonds, loans, and commercial paper. Equity is a term whose meaning depends very much on the context, but in general, it refers to ownership in any asset after all debts associated with that asset are paid off.

Debt-to-Capital Ratio

A measurement of a company's financial leverage, calculated as long-term debt divided by long-term capital. Total debt includes all short-term and long-term obligations. Total capital includes all common stock, preferred stock, and long-term debt. This capital structure ratio can provide a more accurate view of a company's long-term leverage and risk, since it considers long-term debt and capital only. By excluding short-term financing in its calculation, the ratio provides an investor with a more accurate look into the capital structure a company will have if they were to own the stock over a long period of time.

Decommissioning

The process of dismantling a turbine and restoring the site to pre-project conditions.

Decommissioning

Decommissioning as a permitting regulation refers to the process for removing a wind energy conversion system once the project has reached its end. There are a variety of methods used to regulate this area of wind development, from requiring a bond or financial guarantee before a permit is issued to simply requiring a written plan for removing the turbine and associated components.

Demand

The amount of electricity drawn from an electric system at a given time, measured in kilowatts.

Demand-Side Management (DSM)

The process of managing the consumption of energy. DSM programs include, for instance, offering discounts on new, high efficiency appliances so that consumers get rid of their older, less efficient models.

Depreciation

An accounting method used to attribute the cost of an asset over the span of its useful life. The cost, of a portion thereof, can be assigned as a loss on the project's balance sheet to reduce the tax base of the project.

Deregulation

As it pertains to the electricity industry, deregulation is the process of opening up electricity markets to competition between power producers with the notion that competition will help lower electricity rates for consumers.

Discount Rate

1) The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank. 2) The ineterest rate used in determining the present value of future cash flows.

Distributed Generation

A small-scale power generation technology that provides electric power at a site closer to customers than the central station generation. The term is commonly used to indicate non-utility sources of electricity, including facilities for self-generation.

Distribution Cooperative

An electric cooperative that purchases wholesale power and delivers it to consumer members.

Distribution System

The poles, wires, transformers, breakers, fuses, and other associated equipment, used to deliver electric energy from a bulk power supplier to the consumer. Typically, the distribution system is defined as power lines and associated equipment where the operating voltage is less than 69 kilovolts.

Dual Line Feed

A dual line is a second, redundant transmission line connecting a turbine to the grid that allows your project to generate power even if the first line is taken out of service.

Due Diligence

Do your homework! Due diligence means that you have looked at a particular investment from as many angles as possible to best understand the risks, rewards, and opportunity costs. Lenders, investors, contractors, and equipment suppliers will be much more willing to work with you if you can demonstrate that you know the lingo and understand the industry.