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TeachMeFinance.com - explain Capacity transaction Capacity transaction The term 'Capacity transaction' as it applies to the area of energy can be defined as ' The acquisition of a specified quantity of generating capacity from another utility for a specified period of time. The utility selling the power is obligated to make available to the buyer a specified quantity of power'. Previous 5 Terms: Capacity (purchased) Capacity charge Capacity factor Capacity factor (gross) Capacity factor (net) Next 5 Terms: Capacity utilization cape Capillarity capillary action Capillary action (capillarity) About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.