Avoided cost rates definition
Avoided cost rates. – means an electric public utility's calculation of its long-term, levelized avoided energy and capacity costs utilizing the methodology most recently approved or established by the Commission as of 30 days prior to the date of the electric public utility's upcoming CPRE RFP Solicitation for purchases of electricity from qualifying facilities pursuant to Section 210 of the Public Utility Regulatory Policies Act of 1978, as amended. The electric public utility's avoided cost rates shall be used for purposes of determining the cost effectiveness of renewable energy resources procured through a CPRE RFP Solicitation. With respect to each CPRE RFP Solicitation, the electric public utility's avoided costs shall be calculated over the time period of the utility's pro forma contract(s) approved by the Commission.
Avoided cost rates means an electric power supplier’s most recently approved or established avoided cost rates in North Carolina, as of the date the contract is executed, for purchases of electricity from qualifying facilities pursuant to the provisions of Section 210 of the Public Utility Regulatory Policies Act of 1978. If the Commission has approved an avoided cost rate for the electric power supplier for the year when the contract is executed, applicable to contracts of the same nature and duration as the contract between the electric power supplier and the seller, that rate shall be used as the avoided cost. Therefore, for example, for a contract by an electric public utility with a term of 15 years, the avoided cost rate applicable to such a contract would be the comparable, Commission-approved, 15-year, long-term, levelized rate in effect at the time the contract was executed. In all other cases, the avoided cost shall be a good faith estimate of the electric power supplier’s avoided cost, levelized over the duration of the contract, determined as of the date the contract is executed; provided, however, that development of such estimates of avoided cost by an electric public utility shall include consideration of the avoided cost rates then in effect as established by the Commission. Determinations of avoided costs, including estimates thereof, shall be subject to continuing Commission oversight and, if necessary, modification should circumstances so require.
Avoided cost rates shall have the meaning provided in Section 7.2 or Section 7.3, as applicable, of this Agreement.
Examples of Avoided cost rates in a sentence
The Avoided Cost Rates set forth in Section 7.2 or Section 7.3, as applicable, is a standard rate based on the avoided capacity costs of an eligible renewable resource as defined in RCW 19.285.030 and, therefore, such Avoided Cost Rates include compensation for all Environmental Attributes associated with output of the Facility.
For all Base Energy delivered to Avista at the Point of Delivery, Avista shall pay Seller the applicable rate based upon its published Avoided Cost Rates as specified in Exhibit B (“the Avoided Cost Rates”).