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California suspends contract option for large cogenerations

Journal Article · · Energy User News; (United States)
OSTI ID:6403240

Concern over the number of applications for large cogeneration projects and the possibility that buy-back rates would force ratepayers to subsidize these projects led the California Public Utilities Commission (PUC) to temporarily suspend a long-term contract option for gas- and oil-burning cogeneration projects over 50 megawatts in Pacific Gas and Electric Co. territory. The PUC is likely to extend the suspension statewide for cogenerators of this size. Other issues raised at the November 5 hearing were the decline in the need for power from cogeneration sources and possible capacity limitations of the utility's transmission facilities. The PUC recommended development milestones to ensure that cogeneration and other power source developers actually make the progress outlined in their contracts. If the suspension becomes permanent, it could eliminate large cogeneration projects.

OSTI ID:
6403240
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 9:46; ISSN EUSND
Country of Publication:
United States
Language:
English