Glossary Terms

Due Diligence

Do your homework! Due diligence means that you have looked at a particular investment from as many angles as possible to best understand the risks, rewards, and opportunity costs. Lenders, investors, contractors, and equipment suppliers will be much more willing to work with you if you can demonstrate that you know the lingo and understand the industry.

Dual Line Feed

A dual line is a second, redundant transmission line connecting a turbine to the grid that allows your project to generate power even if the first line is taken out of service.

Distribution System

The poles, wires, transformers, breakers, fuses, and other associated equipment, used to deliver electric energy from a bulk power supplier to the consumer. Typically, the distribution system is defined as power lines and associated equipment where the operating voltage is less than 69 kilovolts.

Distributed Generation

A small-scale power generation technology that provides electric power at a site closer to customers than the central station generation. The term is commonly used to indicate non-utility sources of electricity, including facilities for self-generation.

Discount Rate

1) The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank. 2) The ineterest rate used in determining the present value of future cash flows.

Deregulation

As it pertains to the electricity industry, deregulation is the process of opening up electricity markets to competition between power producers with the notion that competition will help lower electricity rates for consumers.

Depreciation

An accounting method used to attribute the cost of an asset over the span of its useful life. The cost, of a portion thereof, can be assigned as a loss on the project's balance sheet to reduce the tax base of the project.

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