Q&A on Best Practices for Standby Rates for Combined Heat and Power

April 5, 2021 in Energy Systems, Reports & Whitepapers Authors: Carl Linvill, Jamie Scripps, Lola Schoenrich

combined heat and power

Great Plains Institute is excited to publish a new white paper, Best Practices for Standby Rates for Combined Heat and Power (CHP), prepared for GPI by Jamie Scripps of Hunterston Consulting. This paper is a culmination of a years-long collaboration with Jamie and other partners to address barriers to deployment of CHP systems in the Midwest—including the design of standby rates, which are monthly charges to customers with on-site distributed generation like CHP systems. We are grateful for the thoughtful contributions of Carl Linvill of the Regulatory Assistance Project in advising on the starting point for this research, and for his review of the final product. Continue reading »

GPI Launches Survey on Standby Rates Best Practices for Combined Heat and Power

July 1, 2020 in Energy Systems Author: Jamie Scripps

Hands, working on a computerThe Great Plains Institute is launching a survey requesting feedback on best practices in standby rates for combined heat and power (CHP). According to Lola Schoenrich, vice president of communities at GPI, “Best practices for standby rates have begun to emerge, but we need to further define and standardize these practices. The purpose of this survey is to begin to critically examine these emerging recommended practices with interested stakeholders such as regulators, potential CHP users, developers, technical experts, and utilities.” Continue reading »

Value of Utility-Owned Combined Heat and Power (CHP) Highlighted in DTE Rate Case

June 13, 2019 in Energy Systems Author: Jamie Scripps

A worker machining a piece of a car body

The Michigan Public Service Commission recently approved DTE Energy’s request to develop a 34 MW combined heat and power (CHP) plant on the campus of Ford Motor Company’s Research and Engineering Center.¹ This project highlights how ownership of CHP facilities can be a valuable option in a utility’s resource planning and can bring economic and environmental benefits for the utility and its customers over the long term. Due to their size, high efficiency, and grid benefits, utility-owned CHP projects likely offer a better deal to ratepayers than the construction of traditional central power stations.   Continue reading »

Combined Heat and Power’s (CHP) Reliability Recognized in Recent Actions by Midwestern Regulators and Utilities

June 3, 2019 in Energy Systems Author: Jamie Scripps

 

Duct workRecent regulatory decisions in Michigan and other Midwestern states indicate a growing recognition of combined heat and power (CHP) facilities’ demonstrated reliability. The decisions impact the rates and fees charged to CHP systems due to their potential need for standby service (i.e., backup service) and are important steps toward increased financial viability of CHP facilities in the region. As other states look to encourage CHP facilities, these recent actions can provide examples of aligning rates and fees more closely to actual CHP performance.  Continue reading »

Improving Standby Rate Design Would Help Industries Increase Efficiency, Reduce Emissions, and Save Money

March 13, 2018 in Energy Systems Authors: Anna Dirkswager, Jamie Scripps

What is Combined Heat and Power?

Combined heat and power (CHP) is a system that not only generates electricity, but also harnesses the thermal energy from power generation for heating and cooling applications (typically burning natural gas for electricity and capturing the exhaust for steam heat). By combining these two processes, some CHP systems can achieve thermal efficiencies of 60-80 percent, which is up to twice the efficiency of traditional power generation. Continue reading »