Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Commissioning

On-the-Farm Energy Use

Lighting

Building Envelope

Central HVAC System

Boilers

Steam

Combined Heat and Power

Compressed Air

Refrigeration

Motors

Demand Response

Distributed Generation

Water Use

Best Practice Guide Glossary

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AVERAGE COST Return to list of terms

The revenue requirement of a utility divided by the utility's sales. Average cost typically includes the costs of existing power plants, transmission, and distribution lines, and other facilities used by a utility to serve its customers. It also included operating and maintenance, tax, and fuel expenses.

Source: California Energy Commission