Rates for backup service under PURPA when the supplying utility has excess generating capacity

Journal Article · Sat Oct 31 23:00:00 EST 1987 · Cogener. Small Power Mon.; (United States)

OSTI ID:5653027

Under PURPA, cogenerators are entitled to receive backup service. It is often said that tariffs for backup service should reflect the low probability that an unscheduled outage will occur during system peak. This memorandum concludes that probabilistic analysis of contribution to coincident peak demand is not relevant under PURPA during periods in which a utility system is experiencing generating capacity surpluses, and that in such situations, backup rates should be designed so that should the customer insist on installing a cogeneration system, that the customer's contribution to fixed costs remains constant. The reason for this is to assure that prospective cogenerators receive appropriate pricing signals in their assessment of proposed cogeneration projects, and should they decide to install cogeneration facilities requiring backup service, to hold the remaining customers on the system harmless.

• OSTI ID: 5653027
• Journal Information: Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States); ISSN CSPME
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290800* -- Energy Planning & Policy-- Heat Utilization-- (1980-)
CAPACITY
COGENERATION
DEUS
ELECTRIC UTILITIES
ENERGY SYSTEMS
LAWS
NATIONAL ENERGY ACT
POWER GENERATION
PUBLIC UTILITIES
PUBLIC UTILITY REGULATORY POLICIES ACT
RATE STRUCTURE
STEAM GENERATION