Power Average

After talking to several VNEA members in different parts of the country , I was told of the common use of power averages to create parity in teams using all levels of players on their rosters. A percentage of points allowed seems to be the basis for this but not finding an explanation in print is making it more than difficult for our members to effectively discuss and consider its merit in our situation. Is there any written explanation available or would someone on this forum be so kind as to help me understand this concept better? Thanks

I'm referring to a VNEA league specifically and the goal of using such a tool in structuring a handicap system that enables any team, regardless of strength, is to be competitive. After reading as much as I could find, the formula starts with a minimum of 12 games points won minus opponents points scored divided by games played times a % that is arbitrary and most commonly 30. As it establishes a number reference relating directly to the "power" of each player, it can supposedly augment the handicap to better level the playing field for all concerned. My problem is I say all of this with no certainty and only want to stop our league from losing teams by a few strong teams making most of league feel less than competitive.