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The impact of recent legislative and regulatory incentives on cogeneration

Conference · · Proc. Am. Power Conf.; (United States)
OSTI ID:6638673

This paper proposes that the regulations promulgated to promote cogeneration since the National Energy Act (NEA) of 1978 have provided valuable, but inadequate, incentives for the combined production of electric power and useful thermal energy. Topics considered include the regulatory incentives for cogeneration, the Public Utility Regulatory Policies Act (PURPA), PURPA qualifying standards, avoided cost, the Fuel Use Act (FUA), environmental regulations affecting cogeneration, utility benefits, and utility ownership. The key part of the NEA affecting cogeneration is PURPA, whose broad objective is to encourage conservation and efficient use of energy resources by utilities. The FUA mandates a prohibition against the use of oil or natural gas as the primary energy source in any new electric power plant, or any new major fuel-burning installation that consists of a boiler. The examined regulations offer incentives which provide regulatory relief, allow the use of clean fuels, provide tax credits and accelerated depreciation incentives, guarantee a market for the electric power generated at an attractive price, and have attempted to make cogeneration attractive to industrial owners at both the State and Federal level.

Research Organization:
General Electric Company, Schenectady, NY
OSTI ID:
6638673
Report Number(s):
CONF-830446-
Journal Information:
Proc. Am. Power Conf.; (United States), Journal Name: Proc. Am. Power Conf.; (United States) Vol. 45; ISSN PAPWA
Country of Publication:
United States
Language:
English