BAI and the Regulatory Assistance Project prepared a paper entitled "Standby Rates for Combined Heat and Power Systems: Economic Analysis and Recommendations for Five States" for the Oak Ridge National Laboratory. The lead authors were James Selecky, Kathryn Iverson and Ali Al-Jabir. Lisa Scwartz and Richard Sedeno of the Regulatory Assistance Project provide coordination, contribution and editing.
The paper sets forth the best practices in standby rate design. Specifically, the paper addresses rates or charges for backup power, maintenance power, supplemental power and delivery costs.
This paper presents the results of an analytical assessment of the rates, terms and conditions for standby service in five states: Arkansas, Colorado, New Jersey, Ohio and Utah. Specifically the study evaluated the efficacy of standby tariffs for combined heat and power (CHP) applications.
This paper sets forth options to improve the tariffs analyzed and the estimated economic impact of the suggested tariff improvements for a selected set of proxy utility customers who have CHP systems. Although the study and recommendations targeted participating states, the analytical methods, spreadsheets, and recommendations can be adapted for use by other jurisdictions.
You can view the April 9, 2014 webinar recording here.