Development spread
Development spread is the difference between yield on cost and market cap rate. A positive spread suggests development value creation, but only if cost, schedule, leasing, and power assumptions are credible.
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Utility Rates, Grid, and Markets
Service territory
Service territory is the geographic area where a utility has rights or obligations to provide service. A parcel's utility service territory can materially change tariff options, power-delivery timeline, incentive negotiations, and feasibility.
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Ancillary services
Ancillary services are services needed to support reliable transmission and grid operation, such as reserves, voltage support, load following, scheduling, and imbalance management. Large loads may pay for or indirectly drive ancillary-service needs.
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Cost allocation determines who pays for study costs, network upgrades, interconnection facilities, or system reinforcements. For large-load users, the allocation method can make two otherwise similar sites very different financially.
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