Non-utility generators (NUG's)

Facilities for generating electricity that are not owned exclusively by an electric utility and which operate connected to an electric utility system. A term coined to describe Qualifying Facilities, independent power producers, exempt wholesale generators, and any other company in the power generation business which has been exempted from traditional utility regulation. Some NUG facilities are built by users primarily for their own energy needs. Other NUG plants are built specifically to sell power to utilities under long-term contracts. In the last five years, more than 50 percent of new generation capacity has been constructed by non-utility generators.