California PUC provides standard offer option for CHP systems

CALIFORNIA –On December 17, the California Public Utilities Commission (CPUC) provided an opportunity for small combined heat and power (CHP) systems to sell excess electricity generation to investor-owned utilities under Assembly Bill (AB) 1613.

The CPUC adopted two separate contracts for the purchase of excess electricity from eligible CHP systems. A standard contract will be available to all eligible CHP systems up to 20 megawatts (MW) and a simplified contract will be available to CHP systems that export no more than 5 MW. Pricing for electricity delivered under these contracts will be based on the price of energy from a new combined cycle gas turbine, updated monthly to reflect current gas prices. Additionally, a 10 percent locational adder will be applied to the price CHP systems located in high-value areas may receive. Source: CPUC press release on CHP standard offer.


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