A (10) | B (1) | C (9) | D (15) | E (8) | F (3) | G (5) | H (3) | I (8) | K (2) | L (4) | M (11) | N (6) | O (3) | P (16) | R (6) | S (10) | T (5) | U (1) | W (6) | Z (1)
Term Definition
Pad Mount Transformer

A electric transformer that is mounted on the ground as opposed to a pole mounted transformer. A pole mounted transformer is mounted on a pole that holds electric power lines.

Pass-Through Entity

A business structure that allows tax credits and operating gains and losses to be allocated to the owners of the business rather than the business itself, which prevents the income of the business from being taxed twice. Some examples of pass-through entities that would qualify for the federal production tax credit include: limited liability companies, partnerships, sub-chapter “S” Corporations, and limited liability partnerships.

Passive Income

Certain types of income, as defined by the IRS, such as rental income or income from businesses, in which the earner serves only as an investor and is not actively engaged in running the investment as defined by the IRS. See Passive Tax Appetite.

Passive Tax Appetite

Income from certain types of investments qualifies as passive income. Tax paid on this income is considered passive tax. To take advantage of the Federal Production Tax Credit (the PTC) and Modified Accelerated Cost Recovery System (MACRS), you or a project partner must be paying taxes that fit into this category of tax liability. For more information about what qualifies as passive activity see IRS Publication 925: Passive Activity and At-Risk Rules: http://www.irs.gov/publications/p925/ar02.html

Payments-In-Lieu-of-Taxes (PILOT)

Negotiated payments between the local taxing authority and a wind project. These payments compensate for excessive use of infrastructure in the area while developing the project and allow the local community to benefit from wind energy development. Property taxes and PILOTs contribute a great deal to the tax revenue of many windy rural areas and aid in the development of new schools, community centers, and other local programs. Project developers opt to enter into PILOT contracts in order to be good neighbors to the community, while other areas may require these payments before local authorities grant permission to build.

Peak Demand

The greatest demand placed on an electric system; measured in kilowatts or megawatts; also, the time of day or season of the year when that demand occurs.

Peak Load

The amount of electric power required by a consumer or a system during peak demand; measured in kilowatts or megawatts.

Permits Required

Most, if not all, county permits for wind energy conversion systems are conditional use permits. Often the permitting authority will establish threshold requirements, as seen with the ordinances in the County Wind Ordinance Survey.

Plat Drawings

A map showing politically defined sections and townships that shows who holds the deed to the parcels of land contained within.

Power Curve

The instantaneous power output of a specific turbine design at various wind speeds. Used with wind resource data to determine the potential for electricity generation at a project site.

Power Purchase Agreement

The contract to buy the electricity generated by a power plant. Securing a good PPA is often one of the most challenging elements of wind project development.

Pro forma

Comprehensive financial analysis of a business or project.

Pro rata

In proportion to, as determined by a specific factor. Example: tax credits are allocated to project owners in direct proportion to the percentage of the project they own.

Production Tax Credit (PTC)

Provides the owner of a qualifying facility with an annual tax credit based on the amount of electricity that is generated. By focusing on the energy produced instead of capital invested, this type of tax incentive encourages projects that perform adequately. In 2007, the rate for the PTC is 1.9¢/kWh. The PTC increases from year to year based on the consumer price index.

Public Utility Commission (PUC), Public Services Commission (PSC) or Utility Board

A state government agency responsible for the regulation of public utilities within a state or region. A state legislature oversees the PUC by reviewing changes to utility laws, rules, and regulations and approving the PUC's budget. The commission is usually made up of Commissioners appointed by the governor or legislature for a specific term which varies from state to state. The PUC focuses on adequate, safe, universal utility service at reasonable rates while also trying to balance the interests of consumers, environmentalists, utilities, and other stockholders.

Public Utility Regulatory Policy Act (PURPA)

A federal law passed in 1978 that requires electric utilities to purchase electricity produced from certain efficient power producers (frequently using renewable or natural gas resources). Utilities purchase power at a rate equal to the costs they avoid by not needing to generate the power themselves. State regulatory agencies establish the rate based on local conditions, utility balance sheet, and resource reporting.