We explore the perspective of considering the squeezed thermal reservoir as an equilibrium reservoir in a generalized Gibbs ensemble with two non-commuting conserved quantities. We outline the main properties of such a reservoir in terms of the exchange of energy, both heat and work, and entropy, giving some key examples to clarify its physical interpretation. This new paradigm allows for a correct and insightful interpretation of all thermodynamical features of the squeezed thermal reservoir, as well as other similar non-thermal reservoirs, including the characterization of reversibility and the first and second laws of thermodynamics.

5 + 5 pages, 2 figures; Comments are welcomed; few typos corrected; accepted in PRE