Economic capacity definition
Economic capacity means the amount of generating capacity owned or controlled by a potential supplier with variable costs low enough that energy from the capacity could be delivered to the relevant geographic market at a price no more than 5% above the pre−transaction market clearing price; less any capacity that is committed under long−term firm sales contracts; plus any capacity that is acquired under long−term firm purchase contracts, and any generating capacity that is under the operational control of a third−party but the potential supplier receives the economic benefit of the capacity. In this subsection, a long−term sales or purchase contract means a sales or purchase contract which has a remaining commitment of more than one year.