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TAKE-OR-PAY
In a buyer’s contract take-or-pay is the obligation to pay for a specified amount of gas whether this amount is taken or not. Depending on the contract terms under-takes or over-takes may be taken as make-up or carry forward into the next contract period. When it is credited into another contract period this is called make-up gas.

TARIFF
Public schedules detailing utility rates, rules, service territory, and terms of service that are filed for official approval with a regulatory agency.

TECHNICAL ANALYSIS
Technical analysis is based on the presumption that price takes into consideration all factors that could influence the price of the commodity. It is therefore broader than fundamental analysis, which looks at supply and demand. Past price movements can be analysed for indication of future commodity price movements.

TECHNICAL RALLY
A short rise in commodity futures prices within a general declining trend. Such a rally may result from bargain hunting by market participants or because technical analysts have noticed a particular support level at which the commodity price is expected to increase.

TECHNICAL SIGN
A significant short-term trend identified through technical analysis of a commodities’ price movement.

THERM
The imperial unit of measurement for a quantity of gas, equivalent to 100,000 Btu.

THETA
Option risk parameter which measures the speed of time decay of the option premium.

TIME DECAY
See theta.

TIME VALUE
Part of the option premium which reflects the excess over the option’s intrinsic value, or the entire premium if there is no intrinsic value. At given price levels the option’s time value will decline until expiration.

TOLLING
Under a tolling agreement a power marketer or commercial electricity customer provides the fuel, say natural gas, to produce electricity for the marketer or customer at an agreed spark spread which will be dependent on the plant’s efficiency, as measured by its heat rate, and receives the rights to electricity output.

TRANSMISSION FACILITY
Equipment used to deliver electric power at high voltages in bulk quantity, from generating facilities to local distribution facilities, for final retail use.

TRIGGER CONDITION
The payout of path-dependent options such as barrier options and digital options depends on a specified market variable satisfying a specific trigger condition. The most common condition is that the spot rate (or price) of the underlying must trade through a specified level before the option becomes active (or inactive), but many other types of condition are possible.