Standby Rates
Along with clear interconnection standards, a second condition for the economic viability of CHP is that the avoided costs of purchasing electricity from the grid be greater than the capital and operating costs involved in building the facility. Excessive standby rates and other charges can upset this balance by adding to operating costs, negatively impacting the economics of CHP systems.
Policy: Alabama Power Company standby provisions
Description: Alabama Power Company does not have a standby rate provision for distributed generation customers. Customers wishing to purchase standby service can do so under the rate at which they would purchase power were they not generating it on their own. These rates are generally balanced between demand and energy charges. Billing demand is the maximum 15-minute demand during the month or 90% of the maximum from the previous June-Sept period, whichever is higher. This policy is viewed as unfavorable toward CHP.
Last Updated: July 2018
Policy: Alaska Electric Light and Power Company standby policy
Policy: Homer Electric Association standby policy
Policy: Golden Valley Electric Association, Inc. standby rate/policy
Description: Alaska Electric Light and Power Company does not have a standard standby rate, and charges standby service under the customer’s regular rate. In general, their rates have moderate energy charges and moderate to high demand charges. The Homer Electric Association does not have a standard standby rate and also provides standby service under the customer’s regular rate, which incorporates moderate to high demand and energy charges. Golden Valley Electric Association charges capacity payments for systems below 50kW, and systems larger than that are charged under their regular rate, which have high demand and energy charges. Demand is based on a monthly maximum. All three of these rates are viewed as neutral to CHP.
Last Updated: July 2014
Arizona Public Service Company provides standby service to customers through a specified contract demand. A high demand-based reservation charge in addition to a customer charged is assessed every month, while actual usage is billed through moderate energy charges. Salt River Project provides standby service to customers with loads larger than 3MW. Standby service charges are based upon demand and energy charges that are themselves dependent on daily electricity prices at the Palo Verde Nuclear Generating Station. These rates are viewed as neutral toward CHP.
Last Updated: July 2014
Policy: Southwestern Electric Power Company’s Rate 28
Policy: Entergy Arkansas Inc.’s standby service rider
Description: Southwestern Electric Power Company provides standby service to customers primarily on a high demand basis and low energy charge. The applied billing demand is based on the maximum 15 minute demand or 70% of the maximum demand from the previous 11 months, whichever is higher. This rate is viewed as unfavorable toward CHP. Entergy provides standby service to customers who contract for a specific amount of capacity. A moderate reservation fee is assessed each month. Anything beyond non-reserved energy is billed at the customer’s regular rate. This is viewed as neutral toward CHP.
Last Updated: July 2017
Policy: Southern California Edison Company Schedule S
Policy: Pacific Gas and Electric Schedule S
Description: SCE’s rate is more demand-based than PG&E’s, which uses a high energy charge to bill actual usage. Both rates are, for the most part, neutral to CHP.
Last Updated: July 2014
Policy: Xcel Energy’s Schedule PST
Description: Customers wishing to secure standby service for CHP systems may contract with Xcel Energy for a specified amount of standby capacity. A monthly customer charge and a demand-based reservation charge and assessed regardless of usage, while a moderate energy charge and high demand-based charge fluctuate with usage. This rate is generally seen as neutral to CHP deployment.
Last Updated: July 2014
Policy: Connecticut Light & Power Company Rider N
Policy: United Illuminating Company CPUCA 462
Description: CL&P has withdrawn its unfavorable-to-CHP Rate 985, and has replaced it with Rider N, which can be attached to one of several rates. This net-metering scheme is more favorable to CHP because it does not include a ratchet mechanism. UIC’s CPUCA 462 is also favorable to CHP because there is a moderate demand charge accompanied by a high energy charge, with no ratchet in place.
Last Updated: July 2014
Policy: Delmarva Power & Light’s standby service policy
Description: Delmarva Power & Light does not have a standby rate specifically for CHP, but provides standby service to CHP systems through its general service rate, which features very high demand charges but no demand ratchet. This is viewed as neutral toward CHP deployment.
Last Updated: July 2014
Policy: Potomac Electric Power Company (Pepco) Schedule S
Description: Pepco charges for demand with a minor reservation fee to secure capacity, with an energy charge derived from the facility’s appropriate rate. Billing demand is based upon a monthly peak demand, with no ratchet. This treatment is viewed as favorable toward CHP.
Last Updated: July 2014
Policy: Progress Energy Florida, Inc. Rates SS-1, SS-2 and SS-3
Policy: Florida Power & Light Company Rate SST-1
Description: Progress Energy Florida, Inc. provides standby service via a contractual agreement for a particular amount of demand. Service is charged at a rate balanced between demand and energy charges. Billing demand is based on either a maximum monthly demand OR the maximum demand established over the past 23 months, whichever is greater. This standby rate is seen as not favorable to CHP. Florida Power & Light provides standby service to customers through a contractual agreement for a particular amount of demand as well. A reservation fee is assessed based upon the contracted demand, and then actual usage is charged through demand and energy charges. Billing demand is based upon a monthly maximum, and there is no ratchet in place. This standby rate is seen as neutral to CHP.
Last Updated: July 2017
Policy: Georgia Power Schedule BU-5
Description: Georgia Power provides standby service only to Qualifying Facilities. The applicable standby rate is primarily demand-based, and energy charges are assessed on a declining schedule. Billing demand is based upon the 30-minute maximum during the month. There is a 12-month ratchet. This service is viewed as unfavorable toward CHP.
Last Updated: July 2018
Policy: Hawaii Electric Company (HECO) Schedule SS
Description: In 2008, the Hawaii Public Utilities Commission issued an order that made standby rates optional for 10 years for CHP-using consumers taking service from the state’s investor-owned utilities. If CHP customers choose not to take standby service, they remain on the otherwise applicable rate schedule. HECO filed its standby service tariff in 2008 in response to the Hawaii PUC’s order to establish standby tariffs. HECO’s tariff includes a reservation fee and calculates demand charges based upon the contract demand or the highest 15-minute backup demand amount, whichever is lesser. Additionally, customers taking standby service have the option of waiving their demand (due to an unscheduled outage) for billing purposes once a year. There is no ratchet in place. This tariff is viewed as favorable toward CHP.
Last Updated: July 2015
Policy: Avista Corporation standby policy
Policy: Idaho Power Company Schedule 45 and 19
Description: Avista Corporation provides standby service to CHP systems under regular utility tariffs. These rates generally have moderate demand and energy charges. Idaho Power Company provides standby service to CHP systems by assessing a reservation charge based upon requested standby capacity. Usage is charged through Schedule 19, which has a demand-based component. There is a high penalty for exceeding contract demand. Both of these rates are viewed as neutral toward CHP.
Last Updated: July 2018
Policy: Commonwealth Edison Company (Exelon) Rate 18
Policy: Illinois Power Company (Ameren) Rider BFS-L
Description: Exelon/Commonwealth Edison’s Rate 18 is predominately demand-based, but it does average out three separate peak demand periods over a month to discern that demand. Ameren/Illinois Power Company’s Rider BFS-L is wholly energy based, with prices conveyed to customers in real time. Both rates are viewed as fairly neutral with regard to impact on CHPdeployment.
Last Updated: July 2017
Policy: Duke Energy Rider 21
Policy: Northern Indiana Public Service Company (NIPSCO) Rate 834
Description: Duke’s standby service, provided under rider 21, is provided at the same rate as distribution service, plus the charges incurred when Duke installs required meters onsite at facilities. The distribution service has a large demand component, and low energy charges. NIPSCO provides standby service under Rate 834 with a high demand component and low energy charge. Both of these rates are viewed as neutral to the deployment of CHP.
Last Updated: July 2014
Policy: Alliant Energy standby service
Policy: MidAmerican Energy Co. Rider No. 8
Description: Alliant Energy provides standby service for pre-scheduled, contracted amounts with a rate that is primarily demand-based, with variable energy charges. There is a high penalty for exceeding contract demand. Billing demand is based on the maximum demand of the month. There is a 12-month ratchet in place. This service is viewed as unfavorable toward CHP.
MidAmerican provides standby service to customers only if they contract for a specific amount of standby capacity. Actual energy use is charged under the customer’s regular rate, were they not self-generating power. Billing demand is based on the maximum monthly demand or 75% of the maximum established during the previous June-September time period, whichever is greater. This service is viewed as unfavorable toward CHP.
Last Updated: July 2014
Policy: Kansas City Power and Light’s Schedule LPS
Policy: Westar Energy Inc.’s standby service rider
Description: Kansas City Power and Light provides standby service to customers that enter into a contract for a specific amount of contract demand. This contract also involves technical and safety requirements. There are two demands assessed: one for the facility and one for the billing demand. Both of these are based upon the 30-minute maximum for the month, and the facilities demand charge has a one-year ratchet in place. Westar Energy, Inc. also offers standby service to customers who contract for a specific amount of standby demand and maintenance energy. Typical billing demands are based on the maximum 15-minute demand during the month or 85% of the maximum demand from the previous June-Sept period. Both of these standby services are viewed as unfavorable toward CHP.
Last Updated: July 2014
Policy: Old Dominion Power Company’s standby service
Policy: Louisville Gas & Electric Co. Rider SS
Description: Old Dominion Power Company provides standby service to customers under the customer’s regular rate. It does not have a standard standby service rate. Most regular rates have a higher demand component than energy charges, and billing demand is based upon the maximum 15-minute demand during the month. This service is viewed as neutral toward CHP.
Louisville Gas & Electric Company provides standby service under its SS rider. This rate is primarily demand based, but includes a small energy component. Billing demand is based upon the maximum 15 minute monthly demand or 50% of the maximum from the previous June-September period, whichever is higher. This rate is viewed as unfavorable toward CHP.
Last Updated: July 2014
Policy: Entergy Louisiana Inc.’s Schedule QFSS-13
Policy: Entergy Gulf States Inc.’s Schedule SMQ
Description: Entergy Louisiana Inc. provides standby service to Qualifying Facilities only. This standby rate is primarily demand-based. Billing demand is based upon the 3 maximum 15-minute demand periods during the month or 70% of the maximum demand over the previous 11 months, whichever is higher. This service is viewed as unfavorable toward CHP.
Entergy Gulf States provides standby service to Qualifying Facilities only. This standby service has a very high demand component. Billing demand is based on the 30 minute maximum demand each month. There is a 12 month ratchet. This service is viewed as unfavorable toward CHP.
Last Updated: July 2014
Policy: Central Maine Power Company Rate SB
Summary: Central Maine Power Company, the largest investor-owned utility in Maine, provides standby service to CHP systems under its Rate SB. This rate has a minimum flat standby charge of $2,000, and then charges actual usage under the customer’s regular rate using the peak monthly demand to charge for usage on standby days. This is seen as neutral toward CHP deployment.
Last Updated: July 2014
Policy: BaltimoreGas and Electric (BGE) Schedule S
Policy: Potomac Edison Company/Allegheny Power Schedule Alternative Generation Schedule (AGS)
Description: BGE provides standby service for distributed generation via contracts specifying particular amounts of standby capacity. The actual energy is charged under the regular rate, and there is no ratchet. Allegheny Power provides standby service for distributed generation facilities that are PURPA Qualifying Facilities. Moderate demand and energy charges are based on real-time pricing, and there is no ratchet. Both of these rates are seen as neutral to CHP.
Last Updated: July 2014
Policy: Massachusetts Electric Company/National Grid standby policy
Policy: NStar Rate SB-G3
Description: National Grid does not offer a standard standby rate. Rather, standby service is available on a contract basis for a specific amount, and system owners would be charged under one of the regular rates. Larger facilities would be charged rates with large demand components. This policy is seen as neutral toward CHP. NStar Electric Company charges standby service under Rate SB-G3, which is entirely demand-based, though the if the maximum monthly peak demand occurred during off-peak hours, the monthly maximum is reduced by 30%. This rate is seen as not favorable toward CHP.
Last Updated: July 2014
Policy: Detroit Edison Rider No. 3
Policy: Consumers Energy Company Auxiliary or Standby Rider
Description: Detroit Edison offers standby service on a contractual basis, for a specified amount of demand, which includes a small reservation fee. Actual usage is billed at the regular rate applicable to the facility. Billing demand is calculated using a monthly maximum OR 65% of the previous summer’s demand, whichever is higher. Consumers Energy Company provides standby service for CHP customers through a contractual agreement as well, for a specified amount of demand, which includes a small reservation fee. Actual usage is charged through high demand and low energy charges. Billing demand is based on a monthly maximum, and there is a 12-month ratchet. Both of these rates are seen as not supportive to CHP.
Last Updated: July 2014
Policy: Excel Energy Standby Service Rider
Policy: Minnesota Power Standby Rider
Description: Excel Energy charges for standby service by entering into contracts with customers for a specified amount of demand, with a related reservation fee. Actual energy usage is billed at a customer’s regular rate. Minnesota Power has two policies for charging standby service. For customers with generation under 60 kW, standby service is provided at the customer’s regular rate. For customers with generation over 60 kW, a high reservation fee and high demand and energy charges or assessed, but with no ratchet. Both of these companies’ standby service is considered neutral toward CHP.
Last Updated: November 2013
Policy: Entergy Mississippi Inc. Rider SS-9
Policy: Mississippi Power Co. Schedule SPSS-3B
Description: Entergy Mississippi provides standby service to customers based entirely on their demand. The demand charge is assessed against 35% of the customer’s entire load monthly. Actual usage is charged under the customer’s regular tariff. Billing demand is determined by using the maximum 15 minute demand during the month or 80% of the maximum demand from the previous 11 months, whichever is higher. This is viewed as unfavorable toward CHP.
Mississippi Power Co. provides standby service to customers who contract for a specific amount of demand capacity. A demand-based reservation charge is assessed monthly. Energy usage is charged under a customer’s regular tariff. These tariffs are generally more heavily skewed towards demand charges, and billing demand is based upon the maximum demand of the month. There is no ratchet. This is viewed as neutral toward CHP.
Last Updated: July 2014
Policy: Kansas City Power and Light Company Schedule Self-Generating Customers
Policy: Union Electric Company Rider E
Description: For on-site generation, Kansas City Power and Light Company provide standby service through executed contracts for a specific amount of demand. This charges customers for the contract demand as if they were regular customers, and then charge for the energy using real-time standby power pricing, in addition to charges specific to the provision of standby power. There is no ratchet. Ameren-Union Electric Company also contracts with standby power customers for a specific amount of demand, and then charges energy based upon what a typical (non self-generating) customer would pay. The demand charges under this rider are high, compared to the energy charges. Both of these rates are seen as neutral to CHP.
Last Updated: July 2014
Policy: Montana-Dakota Utilities Co. Standby Service
Policy: NorthWestern Energy LLC’s Standby Service
Description: MDUCo. provides standby service to customers through individual contracts only. A rate similar to what an individual contract might look like is Rate 30, which includes a reservation fee, moderate demand charges and moderate energy charges. The billing demand is based upon the 15 minute maximum during a month. There is no ratchet in place. This is viewed as neutral toward CHP.
NorthWestern Energy LLC charges standby service through individual contracts as well. Customers would then be charged under a regular tariff, which typically have moderate demand and energy charges. Demand charges are also based upon the 15 minute maximum during a month. This is viewed as neutral toward CHP.
Last Updated: July 2017
Policy: Nebraska Public Power District’s standby service
Policy: Omaha Public Power District Schedule 464
Description: Nebraska Public Power District does not currently have a standby rate, though they are reportedly in the process of developing a standby rate. This approach is viewed as currently neutral toward CHP.
Omaha Public Power District provides standby service through Schedule 464. This service is entirely demand-based, though the demand charge is moderate. Billing demand is based on the maximum 15-minute monthly demand or 85% of the demand from the previous 11 months, whichever is higher. This service is viewed as not favorable toward CHP.
Last Updated: July 2014
Policy: Nevada Power Company Schedule LSR
Description: Nevada Power Company’s Schedule LSRis applicable to systems between 500kW and 20MW in capacity. This schedule is favorable toward CHPand is viewed as incentivizing reliability and maintenance with its demand charge structure for forced outages. The energy charges in this schedule are moderate.
Last Updated: July 2017
Policy: Public Service Company of New Hampshire Rate D
Policy: Unitil Energy Systems standby service policy
Description: The Public Service Company of New Hampshire (PSNH) charges standby service under Rate D. Under that tariff, demand and energy charges are balanced, with demand based upon a calculated maximum. Unitil Energy Systems charges for standby service under its auxiliary service rate, or G1. That rates charges for service using somewhat balanced demand and energy charges. Both of these rates are viewed as neutral toward CHP.
Last Updated: July 2014
Policy: Jersey Central Power and Light Company Rider STB
Policy: Public Service Electric and Gas Company (PSEG) Commercial and Industrial Energy Pricing
Description: JerseyCentral Power and Light Company provides standby service to “cogeneration or small power production facilities” using a rate with very high demand charges, as opposed to its low energy charges. It also incorporates a 12-month ratchet. This standby tariff is seen as not favorable toward CHP. PSEG provides standby service using real time pricing, and the rate is entirely energy-based. The rate includes no demand charge. This rate is seen as favorable toward CHP.
Policy: Order Establishing Criteria For and Requiring Electric Public Utilities to File Standby Tariffs
Description: A 2012 act required the New Jersey Board of Public Utilities to undertake a study of standby rates offered to CHP systems by the state's main electric utilities. While the process is still ongoing, the BPU did require that the utilities either provide additional documentation in support of their existing standby rates, or file new rates that take into account the particular benefits of distributed generation such as CHP during times of peak power demand.
Last Updated: November 2013
Policy: Public Service Company of New Mexico Rate 12
Policy: Xcel Energy standby service
Description: The Public Service Company of New Mexico’s Rate 12 offers standby service to CHP customers that are FERC Qualifying Facilities only and have contracted for a specific amount of standby capacity. A high customer charge is assessed each month. A high demand charge is paired with a moderate energy charge. The demand charge is based upon the maximum on-peak demand during the month or 50% of the maximum from the previous 11 months, whichever is higher. Xcel Energy’s standby service is also offered only to Qualifying Facilities that have contracted for a specific amount of standby capacity. There is a high customer charge, a moderate demand-based reservation fee and moderate demand and energy rates. Demand is calculated by the maximum 30 minute demand of the month or 60% of the maximum from the previous 11 months, whichever is higher. Both of these standby services are viewed as unfavorable toward CHP.
Last Updated: July 2014
Consolidated Edison Service Classification 14-A Niagara Mohawk (Nationa l Grid) Service Classification 7: Both Con Ed’s and Niagara Mohawk’s standby rates are entirely demand-based, though Niagara Mohawk’s includes a 12-month ratchet provision.
Last Updated: July 2014
Policy: Progress Energy Carolinas, Inc. Standby Service Rider SS-29
Policy: Duke Energy Corporation Schedule PG
Description: Progress Energy Carolinas provides standby service to CHP systems via a contractual agreement that specifies a particular amount of demand capacity, accompanied with a monthly reservation charge. Actual usage is assessed by an energy charge and either the reservation charge or the daily demand charge, whichever is greater. The daily demand charge is calculated from the maximum on-peak demand, multiplied by the number of days that standby service was used in that month. The rate is seen as neutral to CHP. Duke Energy Corporation provides standby service to systems with a very high demand-based rate. A moderate reservation fee is based upon a contract demand is assessed every month. Actual usage is charged through a the very high demand rate. Billing demand is based upon a monthly demand maximum, OR 75% of the contract demand, whichever is higher. This standby rate is seen as not favorable toward CHP.
Last Updated: July 2014
Policy: Montana-Dakota Utilities Co. standby service
Policy: Northern States Power Co (Excel Energy) standby service
Description: MDUCo. provides standby service to customers through individual contracts only. A rate similar to what an individual contract might look like is Rate 30, which includes a reservation fee, moderate demand charges and moderate energy charges. The billing demand is based upon the 15 minute maximum during a month. There is no ratchet in place. This is viewed as neutral toward CHP.
Northern States Power Co. provides standby service based entirely on a customer’s contract demand. A reservations fee is billed for the contract, and actual energy usage is billed under a customer’s regular rate. Billing demand is typically based on the maximum monthly demand or 50% of the maximum from the previous 11 months, whichever is higher. This is viewed as unfavorable toward CHP.
Last Updated: July 2017
Policy: Ohio Power Company Schedule OAC-SBS
Policy: Cincinnati Gas & Electric Company Rate DP
Description: Ohio Power Company’s standby rate for CHP is entirely demand-based, and the actual energy is supplied by a third party vendor. Cincinnati Gas & Electric charges CHP customers for backup power primarily based upon a peak demand as well, though Ohio Power Company’s rate is slightly more favorable than Cincinnati Gas & Electric’s.
Last Updated: July 2014
Policy: Oklahoma Gas & Electric Company’s Schedules MS-1, SS-1, BUS-1
Policy: Public Service Company of Oklahoma’s standby policies
Description: OG&E charges standby service through a fixed customer fee and low demand and energy charges. The billing demand is based either on the maximum 15-minute demand each month or 80% of the maximum from the previous 11 months, whichever is higher. The Public Service Company of Oklahoma does not allow customers to operate in parallel with the utility or purchase standby service. Both of these approaches are viewed as not favorable toward CHP.
Last Updated: July 2014
Policy: PacifiCorp Schedule 47
Policy: Portland General Electric Company’s standard protocol
Description: PacifiCorp’s Schedule 47 is applicable to CHP systems over 1000 kW. Those under 1000 kW are subject simply to the regular rate applicable to the particular facility. For those customers under Schedule 47, a small reservation charge is assessed every month, and demand makes up a moderate amount of the usage charge, leaving it somewhat neutral to CHP. PGE has not delineated a specific standby rate for CHP, but customers wishing to contract for standby service generally do so under regular tariffs. PGE has typically charged rates with moderate demand components as well. Their policy is also seen as neutral to CHP.
Last Updated: July 2014
Policy: PECO Energy Company (Exelon)’s Auxiliary Service Rider
Policy: PPL Electric Utilities Corporation Rate 6A
Description: For customers desiring standby service, PECO Energy Company will develop a contract for a specific amount of demand capacity. Charges will then be based on the contract demand and actual energy use. This is viewed as neutral to CHP deployment. PPL Electric Utilities Corporation’s policy is to provide standby service through its Rate 6A for PURPA Qualifying Facilities (QFs), while non-QF facilities are subject to a less beneficial rate. Rate 6A includes a reservation charge based on contract demand, assessed when standby power is not used. When standby power is used, a rate that is balanced between demand and energy charges is assessed. This rate is viewed as neutral to CHP.
Last Updated: July 2014
Policy: National Grid rate B-32
Description: National Grid provides standby service on an entirely demand-based rate. Actual energy usage is billed under a customer’s regular tariff, which is based upon facility size. Billing demand is typically based on the 15 minute maximum monthly demand or 75% of the maximum from the previous 11 months, whichever is higher. Renewable generation is exempt from standby fees. This standby service is viewed as neutral toward CHP.
Last Updated: July 2014
Policy: SanteeCooper Rider L-96-SB
Policy: Duke Energy Schedule PG
Description: SanteeCooper provides standby service to customers that contract for a specific amount of standby capacity. A demand-based reservation charge is assessed monthly. A high standby demand charge is assessed on usage that goes above the contract demand. Actual energy usage is billed through the customer’s regular tariff, with a high demand charge and a moderate energy charge. Billing demand is based on the maximum demand of the month or 80% of the contract demand, whichever is higher. This standby service is viewed as unfavorable toward CHP.
Duke Energy provides standby service to customers operating in parallel with the grid. Duke’s rates include a very high demand-based charge. A moderate reservation fee, based upon the contract demand, is assessed monthly. Actual energy usage is charged under a high demand-based rate. Billing demand is based on the maximum 30 minute demand during the month or 75% of the contract demand, whichever is higher. This service is also viewed as unfavorable toward CHP.
Last Updated: July 2016
Policy: Northern States Power Company Standby Service Rider
Policy: Black Hills Power Inc. Rate SP-3B
Description: The Northern States Power Company offers standby service that is charged entirely based upon contracted demand. A reservation fee applies. Energy charges are billed at the customer’s regular rate. Billing demand is based upon the maximum 15 minute demand of the month. There is no ratchet in place. This is viewed as neutral toward CHP. The Black Hills Power Inc.’s standby rate only applies to Qualifying Facilities that are 100kW or smaller. Any larger system must contract individually for standby service. Demand and energy charges are both high, with demand based upon the maximum 15 minute demand or the contract demand. This rate is viewed as not favorable toward CHP.
Last Updated: July 2014
Policy: Nashville Electric Service standby policies
Policy: Memphis Light, Gas and Water standby policies
Description: Nashville Electric Service does not offer a defined standby rate, so customers interested in purchasing standby service would be charged under their regular tariff or develop a special contract. Under the general tariff, customers would be charged a high demand rate and moderate energy rates. Billing demand is determined by the maximum 30-minute demand of the month or 30% of the contract demand, whichever is higher. This service is viewed as neutral toward CHP.
Memphis Light, Gas and Water provides standby energy service, but the energy supply itself must be contracted through the Tennessee Valley Authority. The TVA charges a moderate reservation fee based upon contract demand and Memphis Light, Gas and Water charges a high demand charge for its energy delivery and a relatively high energy charge as well. This service is viewed as unfavorable toward CHP.
Last Updated: July 2014
Policy: Prevailing utility contract demand policies
Description: The investor-owned utilities ruled by the Texas Public Utility Commission have not developed standby rates specifically for CHP systems. Instead, standby rates are negotiated by these utilities on a case-by-case basis, with applicable rates generally ranging from very negative to neutral in their treatment of and impact on CHP.
Last Updated: July 2014
Policy: PacifiCorp Schedule 31
Description: Standby service is provided through a contract for systems requiring less than 10 MW. A moderate customer charge and reservation charge is assessed monthly. Actual energy usage is charged through a moderate energy charge and a demand charge that is based on the maximum 15-minute demand each month. A very high penalty is assessed for exceeding the contract demand. This rate is viewed as unfavorable toward CHP.
Last Updated: July 2014
Policy: Green Mountain Power Corporation Customer-Owned Generation Rider
Policy: Central Vermont Public Service Corporation standby service policy
Description: For distributed generation customers, standby service is charged on their regular tariff except when the customer’s monthly power factor falls below 95%. When this occurs, standby charges are assessed based upon a customer’s monthly demand and peak KVAR consumption. This rider is seen as neutral toward CHP. Central Vermont Public Service Corp. also does not have a standard standby service rate. Instead, standby service is billed at the customer’s regular rate. Large systems are generally subject to rates with high demand charges and a 12-month ratchet. This policy is seen as not favorable toward CHP.
Last Updated: July 2017
Policy: Dominion’s Schedule 8 Tariff
Policy: Appalachian Power Schedule SBS
Description: Both Dominion’s Schedule 8 and Appalachian Power’s Schedule SBS provide standby service for CHP systems using rates designed with high demand charges. Appalachian Power’s Schedule SBS has a 12-month ratchet. Both rates are viewed as unfavorable toward CHP deployment.
Last Updated: July 2017
Policy: Puget Sound Energy Schedule 458
Policy: PacifiCorp Schedule 47T
Description: Puget Sound Energy charges for the demand portion only of standby service via a contract for a specified amount of demand. This charge includes a moderate monthly demand charge. Energy charges are then assessed by an external provider through a contract. This setup is seen as neutral toward CHP. PacifiCorp also charges standby service for a contracted amount of demand via a high customer charge and a moderate monthly reservation charge. Actual usage is charged via moderate energy charges and monthly maximum demands. There is a high penalty for exceeding contract demand. This rate is seen as not favorable toward CHP.
Last Updated: July 2014
Policy: Appalachian Power Company Schedule Cogen/SPP
Policy: Monongahela Power Company (Alleghany Power) Alternative Generation Schedule (AGS)
Description: Appalachian Power Company’s standby service is provided in two separate categories for CHP. For systems smaller than 100kW, standby service is provided with moderate standby demand and energy charges. Larger systems must contract on an individual basis with Appalachian to determine applicable standby rates.
Monongahela Power Company’s AGSprovides standby service to cogeneration systems that qualify as qualifying facilities under the Public Utility Regulatory Policies Act of 1978. Service is provided at moderate demand and energy rates. Both Appalachian and Monongahela power companies’ standby rates are seen as neutral to CHP.
Last Updated: July 2017
Policy: Wisconsin Electric Power Company General Primary Service Optional Standby
Policy: Wisconsin Public Service Corporation Small Commercial & Industrial Service Time of Use Rate
Description: Wisconsin Electric Power Company’s Primary Service Optional Standby service is negotiated through a contract that specifies a particular demand. The billing for the service is then based upon the negotiated contract, with a small portion reliant upon a demand charge, though no ratchet is in place. Wisconsin Public Service Corporation’s Small Commercial & Industrial Service Time of Use Rate is less favorable to CHP, as it in includes a higher demand charge than is typical, as well as a 12-month ratchet provision.
Last Updated: July 2014
Policy: PacifiCorp (Rocky Mountain Power) Schedule 33
Description: PacifiCorp provides standby service through specific contracts. A high customer charge and a high reservation charge is assessed monthly, dependent upon contract demand. Actual energy usage is charged based upon very low energy charges and moderate demand charges. Billing demand is based on the two maximum demands per month. There is a 12 month ratchet. There is also a very high penalty for exceeding the contract demand. This service is viewed as unfavorable toward CHP.
Last Updated: November 2013