Combined Heat & Power

In light of the potential benefits of Combined Heat and Power (CHP), the Commission is increasing its focus on the technology and is currently examining the viability of increased implementation of CHP through research and consultation with industry experts.

CHP is an efficient approach to generating electric power and thermal energy from a single fuel source, providing cost-effective energy services to commercial business like hotels, universities and hospitals. CHP captures the wasted heat energy that is typically lost through power generation, using it to provide heating and cooling to factories and businesses. In addition to benefits like improving manufacturing competitiveness and reducing greenhouse gas emissions, CHP benefits businesses by reducing energy costs and enhancing energy reliability for the user.

The Commission is determining what policies will make CHP more accessible to interested parties while balancing the needs and interests of all stakeholders.

CHP Biennial Report Summaries

• 2023 CHP Biennial Report
• 2021 CHP Biennial Report
• 2019 CHP Biennial Report (Word)

Support for CHP

Another CHP Working Group meeting will be held in either September or October of 2019. 

CHP Working Group 3rd Meeting Summary - Meeting summary for the April 16, 2019 meeting of the CHP Working Group.

Meeting Outputs

• CHP Biennial Report Summary Presentation
• CHP Market Potential Assessment Presentation
• Standby/Capacity Reservation Charge Best Practices and Review Presentation 

CHP Working Group Meeting Agenda - The agenda for the April 16, 2019 meeting of the CHP Working Group.

CHP Working Group 2nd Meeting Summary -- Meeting summary for the July 16, 2018 meeting of the CHP Working Group.

Meeting Outputs

• Standby/Capacity Reservation Charge Best Practices and Review
• PECO Capacity Reservation Rider

CHP Working Group Meeting Agenda - The agenda for the July 16, 2018 meeting of the CHP Working Group.

CHP Working Group Meeting Summary – Summary for the May 30, 2018 meeting of the CHP Working Group.

Meeting Outputs

• CHP Biennial Report Forms and Instructions (Revised May 31, 2018)
• CHP Biennial Reporting Presentation
• Alternative Ratemaking Proposed Order

CHP Working Group Meeting Agenda - The agenda for the May 30, 2018 meeting of the CHP Working Group.

CHP Working Group Secretarial Letter – On April 6, 2018, the Commission issued a Secretarial Letter announcing the first meeting of the CHP working group meeting to be held on May 30, 2018 at 1:00 pm in the Forest Room of the Keystone Building. Docket No. M-2016-2530484.

Final Policy Statement - On April 5, 2018, the Commission adopted a policy statement geared toward helping advance the development of combined heat and power (CHP) technology.  Additionally, the Commission’s Bureau of Technical Utility Services will initiate a CHP Working Group to engage with stakeholders and encourage the deployment of, and reduce barriers to, CHP initiatives in the Commonwealth. Docket No. M-2016-2530484. Statement by Chairman Brown.

In addition to holding two en banc hearings, referenced below, the Commission has taken actions that it hopes will help facilitate greater deployment of CHP technology throughout Pennsylvania. On February 25, 2016, the Commission issued a Proposed Policy Statement and reporting process to track CHP projects and to identify incentives and initiatives provided by utilities in support of CHP deployment. On January 21, 2016, Chairman Brown signed on to the U.S. Department of Energy’s Better Buildings Combined Heat and Power Resiliency Partnership. The stated purpose of this partnership is, “to examine the perceptions and technology gaps of CHP among resiliency planners, and support the development of plans for communities to increase the adoption of CHP as a reliable, high efficiency, lower emissions electricity and thermal energy source for critical infrastructure.”

Order - Proposed Policy Statement Order inviting comments and reply comments on the Policy Statement. From the Public Meeting of February 25, 2016. Docket No. M-2016-2530484.

Act 129 Statewide Evaluator Distributed Generation Potential Study

The Commission’s Act 129 Energy Efficiency and Conservation Program Statewide Evaluator (GDS Associates, et. al) was tasked with performing a distributed generation (DG) market potential analysis. The objective of the DG Potential Study was to provide estimates of the technical, economic, and achievable energy (MWh) and demand (MW) savings potential for DG resources for the periods of 3, 5 and 10 years beginning June 1, 2016. This study included, among other things, an analysis of combined heat and power potential, on both statewide and EDC bases, in the Commonwealth. 

Act 129 SWE Distributed Generation Potential Study – Released April 21, 2015. Docket No. M-2014-2424864.

Act 129 SWE Distributed Generation Potential Study - No Appendices.

Combined Heat and Power (CHP) En Banc Hearing – October 7, 2014

On Oct. 7, 2014, the Commission hosted its second en banc hearing at the University of Pittsburgh. PUC Commissioners, natural gas and electric industry leaders and project developers discussed CHP costs and benefits, user experience and regulatory policies that impact CHP adoption. 

Any additional comments or recommendations not discussed at the hearing can be emailed to Cornelia Schneck by Nov. 4, 2014. 

Agenda - The agenda for the en banc hearing.

Presentations

Department of Energy - Gearoid Foley, Senior Technical Advisor, Mid-Atlantic CHP Technical Assistance Partnership

Peoples Natural Gas - Jeffrey S. Nehr, Vice President, Commercial Operations

Duquesne Light - David B. Bordo, Vice President, Strategy & External Affairs

Duquesne University - Rodney Dobish, Energy Center

Department of Corrections - John Hajduk and Kurt Homan, Penn State Facilities Engineering Institute

Phoenix Contact - Jeff Crist, President, Gatter & Diehl Inc.

Pace Energy & Climate Center - Tom Bourgeois, Deputy Director

Department of Energy - Richard Sweetser, Senior Technical Advisor, Mid-Atlantic CHP Technical Assistance Partnership

Concord Engineering - Joseph Sullivan, Vice President Energy Policy and Development 

Combined Heat and Power (CHP) En Banc Hearing – May 5, 2014

On May 5, 2014, the Commission hosted an en banc hearing at Drexel University in Philadelphia. PUC Commissioners, natural gas and electric industry leaders and project developers discussed CHP economics, social costs and benefits and regulatory policies that impact CHP adoption. Panelists shared success stories, recommended regulatory changes and explored current issues related to the feasibility of greater CHP adoption in Pennsylvania.

A summary of the hearing and panelists’ presentations, as well as public comments, are posted on this page.

Agenda - The agenda for the en banc hearing.

En Banc Summary - A summary of panelist presentations and responses to questions asked at the en banc hearing.

Presentations

Department of Energy - Gearoid Foley and Richard Sweetser, Senior Technical Advisors, Mid-Atlantic CHP Technical Assistance Partnership

Consortium for Building Energy Innovation - Martha Krebs, Director

Tangent Energy Solutions - Dean Musser, CEO, President & Director

UGI HVAC Enterprises Inc. - Bob Pistor, Vice President

Geisinger Health System - Al Neuner, Vice President, Facility Operations

ZF Energy Development - John Zabilowicz, COO

Philadelphia Gas Works - Craig White, President & CEO

PECO Energy Company - Richard G. Webster, Jr., Vice President, Regulatory Policy & Strategy