Considering the cogeneration commitment: do government incentives tip the scales

Studies show that cogeneration and small power production have the potential to be an innovative partial solution to the nation's energy problems, and the government is anxious to encourage industrial plants to install the facilities. Government incentives have had an impact on economic considerations through the regulation of rates for power purchased for and sold by industrial power production facilities, requirements that utility companies cooperate with industry, tax credits, and financial assistance. Through exemptions from the Federal Power Act, the Natural Gas Policy Act of 1978, the Public Utility Holding Company Act of 1935, and the Powerplant and Industrial Fuel Use Act, cogeneration and small power production facilities were relieved of heavy government regulations imposed on utilities. Each company must decide whether cogeneration meets long-term cost and benefit goals. 75 references.