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Avoided cost |
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| The rate to be paid project developers, called an avoided cost rate, is to be equal to the cost the electric utility avoids if it would have had to generate the power itself or purchase it from another source. The Public Utility Commission of Texas (PUCT) recently issued an order denying a complaint by the JD Wind Companies and interpreting the Public Utilities Regulatory Policies Act of 1978 (PURPA) to prohibit wind and solar-powered qualifying facilities (QFs) from selling output under contracts with rates based on avoided costs. The savings we have achieved over the last three years represent nearly $500,000 a year in avoided costs," Wood said. |
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