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Cogeneration advocates take aim at Midwest utility standby charges

By District Energy posted 05-17-2018 10:01

  

Frank Jossi, Energy News Network

PHOTO BY BASF / Creative Commons

Summary

Minnesota takes the lead with reforms advocates say will bolster the case for combined heat and power plants.

Several Midwest states are taking a new look at a long-ignored utility charge that efficiency advocates say discourages investment in combined heat and power plants.

Standby charges are meant to cover the cost for utilities to provide backup capacity when combined heat and power (CHP) systems are offline, but critics say the charges often exaggerate the expense.

“Our members have identified standby rates as one of the most significant barriers to CHP projects going forward,” said Patricia Sharkey, policy director for the Midwest Cogeneration Association. “If the rates are too high the projects just don’t pencil out because the operating costs will be too high.”

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#News
#CHP
#Minnesota
#UnitedStates
#NorthAmerica
#PolicyandRegulation
#GridModernization
#ElectricUtility
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