COMBINED HEAT AND POWER
STATEMENT OF POLICY
§ 69.3201. Statement of scope and purpose.
(a) Combined heat and power (CHP) is the concurrent production of electricity or mechanical power and useful thermal energy (heating and cooling) from a single source of energy. Unlike central station generation, it is a type of distributed generation which is located at or near the point of consumption. It is a suite of technologies that can use a variety of fuels to generate electricity or power at the point of use, allowing the heat that would normally be lost in the power generation process to be recovered to provide needed heating and cooling.
(b) The electric distribution company (EDC) and natural gas distribution company (NGDC) tariffs, rates, rules and programs that may affect CHP projects are subject to the jurisdiction of the Commission in several important ways that address service reliability, energy efficiency and consumer rates, among others. CHP systems can be an integral part of the defense to natural disasters and manmade attacks on the electric distribution system. CHP can be an important component in addressing environmental concerns and offers significant potential for economic development. In conjunction with natural gas from shale gas resources, CHP also offers potential for lower costs for consumers.
(c) Under 66 Pa.C.S. § 2806.1 (relating to energy efficiency and conservation program), EDCs have provided incentive programs for CHP. Likewise, some EDCs have specific tariffs regarding interconnection fees as well as charges for the use of distribution services.
(d) EDCs and NGDCs are encouraged to support the development of CHP by evaluating and implementing new strategies, programs and other initiatives to promote the deployment of CHP and to reduce barriers to deployment within their service territories. For example, this could include the identification of CHP-applicable Federal and State incentives and funding programs and a method to make this information available to would-be project developers in a manner similar to the requirements in 66 Pa.C.S § 2806.1(j).
The provisions of this § 69.3201 adopted June 8, 2018, effective June 9, 2018, 48 Pa.B. 3412.
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