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Electric Power > Avoided Cost


Avoided Cost
Avoided Cost
Avoided Cost
Avoided Cost
Avoided Cost

The following information is about Avoided Cost.

Avoided Cost Defined

The minimum amount an electric utility is required to pay an independent power producer, under the PURPA regulations of 1978, equal to the costs the utility calculates it avoids in not having to produce that power (usually substantially less than the retail price charged by the utility for power it sells to customers).

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