''Avoided cost'' benefits of packaged cogeneration systems

Currently, the administration and key congressional figures are proposing important changes to the tax code. The general thrust of the proposals is to eliminate or reduce tax deductions with regard to both business and personal taxes. This has caused some investors and businesses to look more cautiously at investments in cogeneration installations. The ''avoided cost'' influence on an investment decision, however, is separate from tax considerations, and grows more important as tax benefits diminish, and the ''avoided costs'' that mean most to the owners and operators of buildings and businesses is reduction in energy expenditures. One product developed to help meet this need is the packaged cogeneration system (PCS), a carefully engineered assemblage of prime-mover (engine), electrical generator, heat recovery equipment, controls, switchgear, foundation, and enclosure. As with all cogeneration installations, the PCS provides both electricity and thermal energy in the form of hot water, steam, and/or chilled water to a building, building complex, or industrial plant.