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New Jersey's new competitive-bidding plan is restoring control to utilities

Barbara A. Bond

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Abstract

New Jersey adopted a trail-blazing master energy plan hospitable to cogeneration just three years ago. Today, the state operates a far different competitive-bidding program that it believes will be the nation's first joining of utilities, cogenerators and independent power producers in a comprehensive common position on power plant development. The most significant - and critical - difference between the two plans is the control given to utilities over the scope, cost and type of non-utility power plant development in the state. A utility will determine how much external capacity it will want or need over the ensuring five years. The utility will determine how much of that external capacity will be bought from other utilities or from independent power sources. The utility will decide if its bidding programs shall be open to non-QF developers of larger plants.

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What this paper is about

New Jersey adopted a trail-blazing master energy plan hospitable to cogeneration just three years ago. Today, the state operates a far different competitive-bidding program that it believes will be the nation's first joining of utilities, cogenerators and independent power producers in a comprehensive common position on power plant development. The most significant - and critical - difference between the two plans is the control given to utilities over the scope, cost and type of non-utility power plant development in the state. A utility will determine how much external capacity it will want or need over the ensuring five years. The utility will determine how much of that external capacity will be bought from other utilities or from independent power sources. The utility will decide if its bidding programs shall be open to non-QF developers of larger plants.

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Available abstract

New Jersey adopted a trail-blazing master energy plan hospitable to cogeneration just three years ago. Today, the state operates a far different competitive-bidding program that it believes will be the nation's first joining of utilities, cogenerators and independent power producers in a comprehensive common position on power plant development. The most significant - and critical - difference between the two plans is the control given to utilities over the scope, cost and type of non-utility power plant development in the state. A utility will determine how much external capacity it will want or need over the ensuring five years. The utility will determine how much of that external capacity will be bought from other utilities or from independent power sources. The utility will decide if its bidding programs shall be open to non-QF developers of larger plants.

Key concepts: Bidding, Scope (computer science), Plan (archaeology), Control (management), State (computer science), Business, Power (physics), Power station

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