CHP Users Forced to Pay for Grid Energy They Aren’t Consuming

CHP

CHP Users Forced to Pay for Grid Energy They Aren’t Consuming

Valerie Eacret for Zondits, January 20, 2015

Forebes Joe AllenFor all the accolades California receives for its energy efficiency efforts and achievements, some energy policies in the state aren’t so great. Consider this: Grid customers in California who generate their own power are forced to pay for energy they don’t use in the form of a departing load charge (DLC). There are a few exceptions: those who generate with solar panels are exempt from paying these illogical charges, and reducing your grid consumption through energy efficiency is supposedly exempt as well ‒ except when it’s not. The result of Solar Turbines’ recent petition for a refund of the DLCs they paid over the past decade shows that combined heat and power (CHP) does not fall into that category.

You might be thinking that there must be some reasoning behind these charges ‒ and there is, although I can’t say it’s a valid one. That’s explained more in this presentation [1]. To learn more about how the DLC affects CHP in California, see this article.