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 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.

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).

Examples of Avoided cost in a sentence

• Avoided cost of energy interchange and power plant life extensions.

• Avoided cost can be accomplished through delivered service, transportation discounts obtained directly with the pipeline, indirectly through the acquisition of discounted released capacity, through variation from the Benchmark Path, or through the acquisition of seasonal capacity that avoids year round demand charges.

• As used in this rule, (c) "Avoided cost" means the amount of fuel, operation, maintenance, purchased power, labor, capital, taxes, and other cost not incurred by a utility if an alternative supply or demand-side resource is included in the utility's integrated resource plan.

• Avoided cost forecasts are subject to variability due to changes in factors such as natural gas and coal commodity prices, system energy and demand requirements, the level and cost of generation ancillary service requirements and interconnection costs.

• Avoided cost is the cost an electric utility would otherwise incur to generate power if it did not purchase electricity from another source.

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 to the extent that a distribution cooperative is an all-requirements power supply customer of a generation and transmission cooperative or other wholesale power supplier, the distribution cooperative's avoided costs are the generation and transmission cooperative's or wholesale power supplier's avoided cost;

Avoided cost means the incremental cost that an electric utility would incur towards meeting its anticipated power demand if such utility does not buy power from a Private Sector Generation Facility (PSGF).

Avoided cost means the incremental cost to the Cooperative of electric energy or capacity or both which, but for the purchase from the Qualifying Facility or Qualifying Facilities, the Cooperative would generate itself or purchase from another source.

Avoided cost means the incremental cost to retail electricity

Avoided cost means the incremental cost to retail electricity providers of