Cogeneration versus generation

Utilities have been prohibited from building new power plants using natural gas and oil, since this was considered an inefficient use of valuable resources. In the meantime, it has become possible to build the very same condensing plants under the umbrella of cogeneration, and it is being done. The 5% minimum thermal energy output and 45% thermal efficiency required by PURPA does not result in the most efficient utilization of energy using sequential production of energy. There are possible ways to remedy this inconsistency and assure that the intent of the law is fully implemented: (1) If the Fuel Use Act (FUA) is still an appropriate piece of legislation in this time of falling gas prices and plentiful supplies, then the minimum thermal energy output and efficiency level for qualified cogeneration should be increased to a point so that in every case cogeneration would maximize energy savings, not electrical generation. (2) On the other hand, if the FUA has been rendered obsolete, then the repeal of this act would allow the electric utilities to compete on an equal basis with cogeneration developers for the most cost-effective production of electrical energy. The intent of the law was to save energy inmore » this country, not just build cogeneration.« less