City eyes link with private cogeneration project

A 38-megawatt cogeneration plant in Oakland, California will provide steam and hot and chilled water to 23 private and public buildings at a 25 to 30% savings. City Council is to approve the Oakland Cogen Group proposal in July, with operation scheduled to begin in three years. New buildings will be tied into the system at lower construction costs than if they included heating plants. Power generated at the plant will be sold to the Pacific Gas and Electric utility grid, and the revenue used to lower downtown energy costs. Users will sign 15-year take-or-pay contracts. Financing for the project will come from a mix of loans and third-party equipment leases. (DCK)