Congestion
Congestion occurs when transmission limits prevent the lowest-cost generation from serving load freely. It can raise local prices, create interconnection upgrade needs, and signal grid bottlenecks near attractive data center markets.
Read definition →Demand ratchet
A demand ratchet sets current bills partly from prior peak demand, often using a percentage of the highest demand in previous months. For ramping data centers, an early spike or test event can influence bills long after the event if the tariff includes a ratchet.
Read definition →Tax abatement
Tax abatement reduces or exempts taxes for a defined period or amount to encourage investment. For data centers, abatements may be tied to capital investment, jobs, equipment, local approvals, and performance commitments.
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