Avoided Cost
Avoided Cost
Engineering glossary
Regulation
Definition of avoided cost
The cost to the utility if it had generated or otherwise purchased the power. It is a benchmark price for energy services, used to compare resource alternatives. Avoided cost is the marginal long-term or short-term production cost that could be avoided by
Source : http://www.utilityami.org/docs/Utility%20AMI%20Glossary_Compiled_041306.xls
link: http://www.utilityami.org/
Second source: Constellation Energy Web Site
Author : not indicated on the source document of the above text
Engineering glossary
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Definition and meaning of avoided cost
Meaning of avoided cost
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