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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AVOIDED COST Return to list of terms

The cost the utility would incur but for the existence of an independent generator or other energy service option. Avoided cost rates have been used as the power purchase price utilities offer independent suppliers (see Qualifying Facilities).

Source: California Energy Commission