Cogenerators lose big money from poor buy-back deals

Cogenerators who don't negotiate a buyback price with utilities that brings a fair rate of return stand to lose a great deal of money, according to a spokesman from the Cogeneration Development Corp. Utilities are required by the Public Utility Regulatory Policies Act (PURPA) to buy back unused power generated by cogenerators, but the rules leave room for negotiation and interpretation. Large industrial users can take advantage of their high power demand and the opportunity cogeneration offers utilities to avoid using old or building new capacity during the bargaining process. Cogenerators can either develop in-house or retain professional expertise to represent their interests. (DCK)