Are Standby Rates Ever Justified? The Case Against Electric Utility Standby Charges as a Response to On-Site Generation

Casten, Sean

doi:10.1016/s1040-6190(03)00047-2

Cited by 2 publications

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“…CHP proponents frequently identify high standby (or backup) rates, charged by the local utility when CHP systems are unexpectedly unavailable, as one of the primary reasons for the slow adoption of CHP systems (Jimison et al, 2004;Casten, 2003). A recent addition to the literature (Firestone and Marnay, 2005) confirms the important impact of standby rates in six New York utility service areas.…”

Section: Introductionmentioning

confidence: 99%

Are US utility standby rates inhibiting diffusion of customer-owned generating systems?

Jackson

2007

Energy Policy

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Section: Introductionmentioning

confidence: 99%

Are US utility standby rates inhibiting diffusion of customer-owned generating systems?

Jackson

2007

Energy Policy

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“…It has been argued that this may be due to electrical standby rates associated with distributed generation (DG), which can effectively increase the cost of utility-supplied electricity whenever a customer installs DG [3] and potentially limit the long term benefits of DG [4]. However, any decrease in profitability caused by such rate structures has only been shown to be prohibitive for those serviced by utilities with moderate to low congestion grids [5].…”

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confidence: 99%

Economic and sensitivity analyses of dynamic distributed generation dispatch to reduce building energy cost

Flores

Shaffer

Brouwer

2014

Energy and Buildings

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a b s t r a c tThe practicality of any particular distributed generation (DG) installation depends upon its ability to reduce overall energy costs. A parametric study summarizing DG performance capabilities is developed using an economic dispatch strategy that minimizes building energy costs. Various electric rate structures are considered and applied to simulate meeting various measured building demand dynamics for heat and power. A determination of whether investment in DG makes economic sense is developed using a realtime dynamic dispatch and control strategy to meet real building demand dynamics. Under the economic dispatch strategy, capacity factor is influenced by DG electrical efficiency, operations and maintenance cost, and fuel price. Under a declining block natural gas rate structure, a large local thermal demand improves DG economics. Increasing capacity for DG that produces low cost electricity increases savings, but installing further capacity beyond the average building electrical demand reduces savings. For DG that produces high cost electricity, reducing demand charges can produce savings. Heat recovery improves capacity factor and DG economics only if thermal and electrical demand is coincident and DG heat is utilized. Potential DG economic value can be improved or impaired depending upon how the utility electricity cost is determined.

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Are Standby Rates Ever Justified? The Case Against Electric Utility Standby Charges as a Response to On-Site Generation

Cited by 2 publications

References 0 publications

Are US utility standby rates inhibiting diffusion of customer-owned generating systems?

Are US utility standby rates inhibiting diffusion of customer-owned generating systems?

Economic and sensitivity analyses of dynamic distributed generation dispatch to reduce building energy cost

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