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Combined Heat and Power (CHP) Partnership

Standby Rates for Consumer Sited Resources

With increased interest in efficient, clean, customer-sited resources comes increased interest in the regulatory policies that affect their deployment. The economic viability of clean, distributed generation (DG) and, in particular, combined heat and power (CHP) facilities, heavily depends on the regulatory policies that determine how they are treated by the electricity network. This paper focuses on one of those policies: the structure of prices for standby service. The report identifies approaches that, given the costs and benefits of DG, provide appropriate savings to the clean, DG system owner and appropriate cost recovery to the utility.

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