Definition: Independent Power Producer
Independent Power Producer
Any entity that owns or operates an electricity generating facility that is not included in an electric utility's rate base. This term includes, but is not limited to, cogenerators and small power producers and all other nonutility electricity producers, such as exempt wholesale generators, who sell electricity.
- An independent power producer (IPP) or non-utility generator (NUG) is an entity, which is not a public utility, but which owns facilities to generate electric power for sale to utilities and end users. NUGs may be privately held facilities, corporations, cooperatives such as rural solar or wind energy producers, and non-energy industrial concerns capable of feeding excess energy into the system. An independent water and power producer (IWPP) is similar to an IPP, but with a unified process to also output usable treated water.