Combined Heat & Power (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.

On April 6 the Commission issued a Secretarial Letter in which the Commission is announcing the first meeting of the CHP working group to be held on May 30, 2018, at 1:00 pm in the Forest Room of the Keystone Building.  Interested stakeholders can participate in person or by telephone.  A call in telephone number and a meeting agenda will be posted on the Commission’s web site at http://www.puc.state.pa.us/utility_industry/natural_gas/chp_cogeneration.aspx under the Support for CHP heading.

IECPA will be participating in this working group and looking to implement the priorities of our members regarding CHP.