5 Lakes Energy is pleased to publish the following white paper describing the methodology and key results from its “apples-to-apples” standby rate comparison study:
Summary: Interest in cogeneration or combined heat and power (CHP) is growing quickly across the Midwest. As a result, utility
policies that impact cogeneration customers, including standby rates, are getting a fresh look. As interest in CHP grows across the Midwest and states explore ways to remove barriers or encourage its deployment, there is a recognition that any serious effort to promote CHP must be done in the context of a fair, cost-based approach to standby rate design.
To provide a side-by-side comparison of the effects of utilities’ standby tariffs on the monthly bills of customers with CHP systems, 5 Lakes Energy calculated standby bills for a hypothetical customer experiencing a range of CHP system outages. In this white paper, author Jamie Scripps, partner at 5 Lakes Energy LLC, describes the methodology behind the 5 Lakes “apples to apples” standby rate comparison and key initial findings from her study.