CHP and WHP Standby Rates and Best Practices

Utilities often charge standby rates to facilities using CHP and WHP to cover the risk of grid power being needed unexpectedly. These rates are often unreasonably high and act as a deterrent to installing CHP and WHP systems. These fees are most commonly calculated on the unrealistic notion that every CHP and WHP system will fail simultaneously and that this failure will occur during a period of peak demand – placing a significant and unexpected burden on the central utility.