The amount of money an electric utility would need to spend for the next increment of electric generation to produce or purchase.
The cost a local distribution company would otherwise incur to generate power to to buy the same amount of power if it did not purchase from a qualifying facility.
The cost a utility would incur to generate the next increment of electric capacity using its own resources; many landfill gas projects' buy back rates are based on avoided costs.
The incremental cost to a utility for capacity or energy or both that, but for the acquisition of energy or capacity from another source, the utility would have to incur. Thus, in demand side management (DSM), the cost of producing or delivering power that the utility can avoid by procuring DSM resources (i.e., by lowering capacity and energy requirements via DSM).
A guideline for comparing the value of conservation and renewable resources with other resources. Literally, the cost a utility avoids by purchasing a conservation or renewable resource versus acquiring energy elsewhere.
A cost that a utility is spared from incurring. For electric utilities, this is the cost they would have paid to build or generate power if they didn't purchase electricity from another party or pool.
1. The incremental cost that a utility would have to incur if it did not acquire energy from another source. Thus, it is the cost of producing or delivering power that the utility can avoid by lowering capacity and energy requirements. 2. A cost that is avoided.
The incremental cost to an electric power producer to generate or purchase a unit of electricity or capacity or both.
The cost that a utility is expected to incur for its customers in providing (generation) service to its customer. This is the price paid by utilities to cogenerators in many states.
The incremental cost an electric utility avoids incurring by purchasing an equivalent amount of power from a qualifying facility (QF) instead of generating the power itself. This is the price electric utilities pay for a QF's output.
