### Question
How is the "system cost" defined?


### Answer
The term **system cost** is defined in *16 U.S.C. § 2602* as follows -

> all direct and quantifiable net costs for an energy resource over its available life, including the cost of production, distribution, transportation, utilization, waste management, and environmental compliance

#### Citation:
  - *16 U.S.C. § 2602*
  - Heading: **CHAPTER 46-PUBLIC UTILITY REGULATORY POLICIES**

