Integrated Resource Planning

TRC

Total Resource Cost

Total Resource Cost (TRC)

The TRC is a regulatory concept used to represent the total net costs of a resource decision. The TRC is used by the California Public Utilities Commission (CPUC) and other regulatory jurisdictions as one of several benchmarks used to evaluate the cost-effectiveness of various programs, measures, and strategies.

Marginal Cost

The cost to produce the next increment of a product or service. When used in water and energy resource planning, it is typically expressed as the incremental cost in $/unit to produce and/or deliver the next (marginal) resource, whether a gallon of water supply, a kilowatt or kilowatt-hour of electricity, or a therm of natural …

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Marginal Supply

The last unit of supply needed to meet demand for a product or service. On a short‐run basis, the marginal supply is typically the last unit of resource – whether a water supply resource, a kilowatt hour, or a therm – used to meet demand. On a long‐run basis, the marginal supply is typically the …

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Economic Dispatch

The ability to select the most economic of two or more different energy sources at any point in time for the purpose of minimizing costs.

Avoided Cost (AC)

The value of a particular action that produces an economic benefit by reducing costs.

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