Congeneration and utilities: Status and prospects: Final report

The cogeneration industry has grown and changed considerably since the passage of the Public Utility Regulatory Policies Act (PURPA) in 1978. It has moved from infancy to a major industry that must be addressed in electric utility resource planning. This report examines the utility perspective on cogeneration. The report begins with a brief outline of the history of the US cogeneration industry, including an in-depth look at recent developments. An assessment of the industry as it currently stands is then presented. This assessment includes a look at who is cogenerating now and who is likely to be cogenerating in the future. It also includes an analysis of the key market sensitivities and how they affect the individuals who must make the decisions to cogenerate. These discussions provide a framework for the central issue addressed in the next section: the effect of cogeneration on the electric utilities. After the alternative responses to cogeneration are outlined, the report details the impacts of cogeneration on utility planning and policy. Special utility concerns relative to cogeneration are raised including potential ratemaking approaches, the issue of cogeneration reliability and approaches to planning for it, and the costs and benefits of cogeneration to non-participant ratepayers. Next more » the planning and economic benefits which can accrue from utility ownership of and participation in cogeneration projects are discussed in the context of cogeneration as an electric utility opportunity. The final sections of the report define and classify various types of cogeneration technologies and outline the current status of EPRI's cogeneration research. 21 figs., 22 tabs. « less