Three common meanings. In energy generation and provision, regulation can refer to the process of increasing or decreasing capacity in the system in response to changes in customer requirements. This type of regulation usually occurs at generating facilities, although the capacity of transmission and distribution systems can also be regulated.

This term can also refer to the actual amount of generating capacity that can be added to or removed from the system by an independent system operator's energy management system. In this context, a system's regulation is its capacity to be adjusted (regulated) on demand.

Also broadly refers to an enforceable law or a rule of conduct that governs an industry's business practices or operations. Federal and state regulations that apply to the US energy industry must first be put forward for public comment before they can be enacted into law by governing bodies, and these regulations usually prescribe penalties for violators. Regulations which the industry imposes upon itself are not necessarily offered for public comment and may not be subject to penalties if they are violated.

Industry regulations typically refers to regulations imposed on an industry by state and federal officials. Regulations imposed by an industry upon itself are more commonly referred to as internal regulations.

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