Definitions for "Merchant Plant"
A power plant that sells directly to wholesale customers without its output necessarily being committed to long-term power sales agreements.
An electric generator not owned and operated by an electric utility and that sells its output to wholesale and/or retail customers. Merchant plants may also be called non-utility generators, or independent power producers. Merchant plants that sell all of their output wholesale must receive authorization from FERC to sell their output at market-based rates. As defined in Act 141 of 2000, Section 10g(d), a merchant plant means electric generating equipment and associated facilities with a capacity of more than 100 kW located in this state that are not owned and operated by an electric utility. Act 141, Section 10e(2), indicates that a merchant plant making sales to retail customers is an AES and must be licensed as such.
An electric generating facility, not owned by a regulated utility, that sells energy on the open market.