Marginal Cost

Marginal Cost
  The cost of producing one additional unit of a product.
  The cost to the utility or providing the next (marginal) kilowatt-hour of electricity, irrespective of sunk costs.
  The sum that has to be paid the next increment of product of service. The marginal cost of electricity is the price to be paid for kilowatt-hours above and beyond those supplied by presently available generating capacity.
  ***
  The change in cost associated with a unit change in quantity supplied or produced.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary
  ***
  In the utility context, the cost to the utility of providing the next (marginal)kilowatt-hour of electricity, irrespective of sunk costs.
  California Energy Comission. Dictionary of Energy Terms

Energy terms . 2014.

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