Value of Utility-Owned Combined Heat and Power (CHP) Highlighted in DTE Rate Case

June 13, 2019 in Efficiency Author: Jamie Scripps

The Michigan Public Service Commission recently approved DTE Energy’s request to develop a 34 MW combined heat and power (CHP) plant on the campus of Ford Motor Company’s Research and Engineering Center.¹ This project highlights how ownership of CHP facilities can be a valuable option in a utility’s resource planning and can bring economic and environmental benefits for the utility and its customers over the long term. Due to their size, high efficiency, and grid benefits, utility-owned CHP projects likely offer a better deal to ratepayers than the construction of traditional central power stations.   Continue reading »

Combined Heat and Power’s (CHP) Reliability Recognized in Recent Actions by Midwestern Regulators and Utilities

June 3, 2019 in Efficiency, Electricity Author: Jamie Scripps

Recent regulatory decisions in Michigan and other Midwestern states indicate a growing recognition of combined heat and power (CHP) facilities’ demonstrated reliability. The decisions impact the rates and fees charged to CHP systems due to their potential need for standby service (i.e., backup service) and are important steps toward increasefinancial viability of CHP facilities in the region. As other states look to encourage CHP facilities, these recent actions can provide examples of aligning rates and fees more closely to actual CHP performance.  Continue reading »

Improving Standby Rate Design Would Help Industries Increase Efficiency, Reduce Emissions, and Save Money

March 13, 2018 in Efficiency Authors: Anna Dirkswager, Jamie Scripps

What is Combined Heat and Power?

Combined heat and power (CHP) is a system that not only generates electricity, but also harnesses the thermal energy from power generation for heating and cooling applications (typically burning natural gas for electricity and capturing the exhaust for steam heat). By combining these two processes, some CHP systems can achieve thermal efficiencies of 60-80 percent, which is up to twice the efficiency of traditional power generation. Continue reading »