Utilities charge “standby rates” for providing backup electricity for customers who generate power on-site, such as those who install Combined Heat and Power (CHP) technologies. In this 2018 white paper, 5 Lakes Energy compared the “standby rates” charged by utilities in three Midwest states and argued that “fair, cost-based” standby rates are necessary to provide customers the predictability and return on investment necessary to catalyze widespread deployment of CHP.
