Examples of Avoided cost in a sentence
Avoided cost of energy interchange and power plant life extensions.
Avoided cost rates reflect the variable and fixed costs of a CCCT.103 The Oregon Commission rejected use of a market methodology in resource deficient periods and chose the proxy methodology instead because it better reflected the longer- term resource decisions that a utility must acquire when it is in a deficient period.
Avoided cost measurement is tied to the hourly market clearing price for energy and the monthly clearing price for capacity, as measured by the NE ISO.
Avoided cost is the maximum rate a utility may be required to pay to a QF 70 To be clear, if the FNM sellers were not QFs, they would need to have Commission- approved just and reasonable rates under Section 205 of the FPA, and would need to have a filed tariff in which their interconnected utility had agreed to purchase their energy at the filed rate.71 18 C.F.R. § 601 (2019).
Avoided cost calculation already takes that into account, as it is including the alternative costs of generation associated with what is defined as baseline.