← All glossary terms

Utility Rates, Grid, and Markets

Capacity market

A capacity market pays resources for being available to meet future reliability needs. It matters to data center users because capacity costs can flow through tariffs or market settlements, and large-load growth can influence regional resource adequacy.

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PILOT

Payment in Lieu of Taxes is an agreement where a project pays negotiated amounts instead of standard property taxes, often as part of an incentive or public-finance structure. PILOT value should be evaluated against baseline taxes and community costs.

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Environmental Assessment

Environmental Assessment is a NEPA document used to determine whether a federal action may cause significant environmental effects. It can lead to a finding of no significant impact or to a more detailed environmental impact statement.

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Busbar

A busbar is a conductive bar or assembly that distributes power within switchgear, substations, or electrical rooms. Bus arrangements affect reliability, maintainability, fault exposure, and how easily circuits can be added or isolated.

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