39 Miss. Code. R. 4-II-2-101
"Avoided Cost of Wholesale Power" means the cost to an EU1 of electric energy that the EU would generate itself or purchase from another source, such as from an organized wholesale power market, but for the purchase from a Distributed Generation Interconnection Customer (DGIC). In essence, the avoided cost is the marginal cost to produce or purchase one more unit of electrical energy. When a DGIC delivers electricity to an EU, the EU will reduce the equivalent amount of electricity that either is generated at its most expensive operating plant that is not running for reliability purposes or is purchased from an organized wholesale power market. For power generated by an EU, the cost avoided consists of the cost of fuel needed to produce that electricity and the corresponding portion of the plant's operation and maintenance costs and shall include an appropriate average line loss adjustment. For DGICs with solar PV systems, the Avoided Cost of Wholesale Power and the corresponding average line loss adjustment shall reflect the daytime energy production of a solar PV system. No capacity credit is given as part of the calculation of Avoided Cost of Wholesale Power. For an EU that is a member of a regional transmission organization (RTO), the Avoided Cost of Wholesale Power shall be the average real-time locational marginal price (LMP) calculated by the RTO for the EU's load zone(s). Such LMP shall include an appropriate average line loss adjustment. For DGICs with solar PV systems, such LMP and the corresponding average line loss adjustment shall reflect the daytime energy production of a solar PV system.
1 An EU is an electric utility within the meaning of Miss. Code Ann. section 77-3-3(d)(i) (Supp 2014).
39 Miss. Code. R. 4-II-2-101