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U.S. Department of Energy
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Cogenerators tell needs to meet NJ objectives

Journal Article · · Cogeneration; (United States)
OSTI ID:6152116

Higher avoided cost rates based on long-term capacity needs, long-term availability of gas at competitive prices, standard long-term contracts, mandatory and less costly wheeling, less costly and speedier interconnection and streamlined procedures for securing air quality and environmental permits is the package of incentives deemed necessary to achieve the State of New Jersey's pro-cogeneration energy objectives in the opinion of industry representatives. The president of Cogeneration Development Corp. proposed a three-part program. (1) State law should increase the rate of return if a utility lowers the Btu's of fuel it consumes per kilowatt hour produced. Solar, wind, hydro and refuse-derived electricity would count toward kilowatts produced but not add to Btu's consumed. The formula would give the utility full credit for purchases of cogenerated electricity at the cogenerator's net fuel rate. (2) State law should permit its electric utilities to invest up to a prescribed percentage of their net worth in cogeneration facilities as minority partners with profits and losses kept outside of rate-making formulations. (3) State hearings should be held after enactment of the two laws to explore levels of cogeneration needed in order to mothball or decommission the state's least efficient generating plants. These steps would go far to remove the artificial obstacles hampering cogeneration in New Jersey and to enlist the active support of utilities.

OSTI ID:
6152116
Journal Information:
Cogeneration; (United States), Journal Name: Cogeneration; (United States) Vol. 2:6; ISSN COGEE
Country of Publication:
United States
Language:
English