You can avoid pitfalls in sale of cogen power

Journal Article · · Cogeneration; (United States)

OSTI ID:5944702

Yokell, M D; Porter, D

Negotiating a contract for the sale of cogenerated power to an electric utility is complex, with the determination of how to compute avoided cost one of the more confusing and adversarial aspects. Guidelines describe the three basic approaches to the avoided-cost problem: differential revenue requirements, proxy unit, and determination by fiat. Contracting issues include contract length/rate tradeoffs, reliability/rate tradeoffs, dispatchability, uncertainty, true-ups if forecasted data are used, fixed versus escalating rates, surplus versus simultaneous purchase/sale, transmission and wheeling, and line loss. A seemingly small difference in the rates paid over the life of a project can have a substantial impact on the after-tax rate of return to project owners.

• Research Organization: Energy and Resources Consultants, Inc., Boulder, CO
• OSTI ID: 5944702
• Journal Information: Cogeneration; (United States), Journal Name: Cogeneration; (United States) Vol. 1:4; ISSN COGEE
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290800 -- Energy Planning & Policy-- Heat Utilization-- (1980-)
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320304* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Waste Heat Recovery & Utilization
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
COGENERATION
CONTRACTS
DEUS
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY SYSTEMS
LEGAL ASPECTS
POWER
POWER GENERATION
PUBLIC UTILITIES
RATE STRUCTURE
RELIABILITY
SELLBACK
STEAM GENERATION