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Utilities must work with, not against, cogenerators

Michael J. Zimmer

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Abstract

Electric utilities must cooperate to remove the institutional barriers to cogeneration development during this time of economic uncertainty. The delays, litigation, and confusion with which utilities responded to policies aimed at promoting cogeneration were predictable. Changes that are likely include the need for utilities to own cogeneration facilities through unregulated subsidiaries and for new and more stable financing mechanisms. Gas utilities can compete by offering the merits of self-generation. (DCK)

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What this paper is about

Electric utilities must cooperate to remove the institutional barriers to cogeneration development during this time of economic uncertainty. The delays, litigation, and confusion with which utilities responded to policies aimed at promoting cogeneration were predictable. Changes that are likely include the need for utilities to own cogeneration facilities through unregulated subsidiaries and for new and more stable financing mechanisms. Gas utilities can compete by offering the merits of self-generation. (DCK)

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Available abstract

Electric utilities must cooperate to remove the institutional barriers to cogeneration development during this time of economic uncertainty. The delays, litigation, and confusion with which utilities responded to policies aimed at promoting cogeneration were predictable. Changes that are likely include the need for utilities to own cogeneration facilities through unregulated subsidiaries and for new and more stable financing mechanisms. Gas utilities can compete by offering the merits of self-generation. (DCK)

Key concepts: Cogeneration, Confusion, Work (physics), Business, Subsidiary, Environmental economics, Electricity generation, Natural resource economics

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