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Avoided cost definition

Avoided cost means the incremental cost to an electric utility of electric energy or capacity which, but for the purchase from the qualifying facility, such utility would generate itself or purchase from another source.
Avoided cost means the cost the utility would have to pay to provide energy and capacity from alternative sources of supply available to utilities as calculated pursuant to the formulas in subrules 35.9(7) and 35.10(4).
Avoided cost means the incremental or marginal cost to a utility of energy or capacity, or both, not incurred by a utility if an alternative supply-side resource or demand-side resource is included in the utility's IRP.

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.


More Definitions of Avoided cost

Avoided cost is the incremental cost to an electric utility of electric energy or capacity or both, which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source, as provided in 18 C.F.R. Section 292.101 (b) (ii) (6).
Avoided cost means the reduction in a without-project future condition cost that would occur as a result of a proposed project.
Avoided cost means the incremental cost to retail electricity
Avoided cost means the incremental cost to retail electricity providers of
Avoided cost means the current contract cost that Amicalola pays to its wholesale provider for electricity.
Avoided cost means the Southwest Power Pool Integrated Marketplace Day Ahead Locational Marginal Price, or a weighted average thereof, at a load hub or pricing node as reasonably determined by GRDA to approximate GRDA’s avoided cost resulting from the output of one or more Community Solar resources.
Avoided cost means the incremental costs, as determined by the commission, to an electric utility