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.