Average Cost

Average Cost
  The total cost of production divided by the total quantity produced.
  ***
  The revenue requirement of a utility divided by the utility's sales. Average cost typically includes the costs of existing power plants, transmission, and distribution lines, and other facilities used by a utility to serve its customers. It also included operating and maintenance, tax, and fuel expenses.
  California Energy Comission. Dictionary of Energy Terms

Energy terms . 2014.

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