← All glossary terms

Utility Rates, Grid, and Markets

PPA

Power Purchase Agreement is a contract for buying electricity or renewable output under defined terms. Data center users may use physical PPAs, virtual PPAs, or utility green tariffs, each with different accounting, risk, and deliverability implications.

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Transmission easement

Transmission easement gives rights to construct, operate, access, and maintain transmission lines and related facilities across land. The width, voltage, structure type, vegetation rules, and access rights can materially affect site usability.

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Feasibility study

Feasibility study is an early engineering screen of whether a proposed interconnection may cause system impacts and what broad costs could result. It is useful for early go/no-go decisions but is less definitive than system impact or facilities studies.

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Investor-owned utility

Investor-owned utility is a privately owned utility regulated by public utility commissions and accountable to shareholders. IOU service territories, tariffs, planning processes, and economic-development practices can materially shape data center site feasibility.

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