Combined Heat & Power

IECPA Position:

IECPA supports the development of combined heat and power facilities. These facilities are very efficient and provide a reliable supply of competitively priced steam and electricity. However many times the utility interconnection process and/or standby service rates are barriers to the development of CHP. IECPA will be participating in this working group and looking to implement the priorities of our members regarding CHP.

Background:

M-2016-2530484               

In April, the Commission adopted a policy statement geared toward helping advance the development of combined heat and power (CHP) technology. CHP captures the waste heat energy that is typically lost through power generation, using it to provide heating and/or cooling for manufacturing and business. According to Chairman Brown’s supporting statement, CHP provides economic benefits to its adopters through reductions in energy consumption and supports reliability and resiliency as a distributed energy resource. The new policy is intended to:

1)      Promote CHP investments;

2)      Encourage utilities to make CHP an integral part of their energy efficiency and resiliency plans, as well as their marketing and outreach efforts; and

3)      Encourage utilities to design interconnection processes and rates for owners and operators of CHP facilities.

                Under the new policy, electric and natural gas distribution companies (EDCs and NGDCs) are required to report to the Commission biennially on CHP development in their service territories. Commission Staff will review the utility reports and make recommendations regarding the development of CHP. In the meantime, the Bureau of Technical Utility Services has until July 3, 2018 to initiate a temporary CHP working group to engage with stakeholders.

http://www.puc.state.pa.us/utility_industry/natural_gas/chp_cogeneration.aspx