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Scott paper may close mill if Pennsylvania cogeneration bill fails

Journal Article · · Energy User News; (United States)
OSTI ID:7152253

Unless the Pennsylvania legislature designates a firm utility buy-back rate for cogenerators, the Scott Paper Co. is threatening to close its Chester mill with 1600 workers. The company is studying the feasibility of a $100 million coal-fired cogeneration project, but needs a satisfactory buy-back rate in order to keep the mill competitive. The system would use a fluidized-bed boiler to replace existing gas and oil boilers. If the legislature passes the Cogeneration and Jobs Development Act, utilities would pay 90% of the average sale price to its largest users (the high-tension rate class). Four of the state's largest utilities have ignored the Public Utility Regulatory Policies Act rates, but the Pennsylvania legislation would make it mandatory to do so. Utilities argue that they should only pay the average price of what they pay other utilities for purchased power.

OSTI ID:
7152253
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 9:19; ISSN EUSND
Country of Publication:
United States
Language:
English