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U.S. Department of Energy
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Utility fuel switching could extend cogeneration payback

Journal Article · · Energy User News; (United States)
OSTI ID:5401000
When utilities lower their production costs by switching fuels, they also lower the avoided cost rates paid to cogenerators. This would lengthen the payback period for cogenerators, and might even make cogeneration unprofitable. A further threat to profitability is a US Circuit Court of Appeals decision that may lower rates and eliminate the requirement to interconnect cogenerators to utilities. Although cogenerators use most of the power they produce, they see these moves as a lack of utility and government cooperation. The utilities respond that cogeneration projects should pay for themselves through their avoided costs, not their sales of excess power. (DCK)
OSTI ID:
5401000
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 7:14; ISSN EUSND
Country of Publication:
United States
Language:
English