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Avoided cost

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Avoided cost
In context of project financing, the capital and expense that would have to be spent if the project did not proceed.


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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.
United States: Idaho Power to buy energy from three Hagerman-area ... by TendersInfo
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.
JD Wind Petition For FERC Enforcement, Declaratory Order Regarding ... by Mondaq Business Briefing
The savings we have achieved over the last three years represent nearly $500,000 a year in avoided costs," Wood said.
Nashoba decision saves district over $200,000 by Telegram & Gazette (Worcester, MA)
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