On May 31, 2017, eight manufacturers, developers and institutions – including ArcelorMittal, American Eagle Paper Mills, Ecolab, and Schneider Electric – delivered a letter to the Pennsylvania Public Utility Commission asking for fair and reasonable standby rates that would encourage the installation of combined heat and power (CHP) and waste heat to power (WHP) systems across the state. These companies support CHP for its numerous benefits – including reducing energy costs and improving reliability – but are concerned that high standby rates, as well as the high variability of fees between utilities within Pennsylvania, puts those with CHP systems at a competitive disadvantage and makes investing in CHP at certain locations less feasible. These Pennsylvania businesses urged the PUC to publish a model tariff that ensures utilities establish transparent standby rates that are appropriately correlated to cost of service, with the result being increased installations of CHP systems; thereby, contributing to job growth and economic development in the state. Read the press release.
The Alliance also submitted public comments that urge the PUC to review each Pennsylvania utility’s standby tariffs to ensure equitable revenue allocation and rates which are correlated to cost of service. In the comments, the Alliance recommends that the PUC adopt a policy statement that includes a model tariff to help Pennsylvania utilities achieve fair rates, accurate cost recovery, and reductions in peak load. The Alliance also recommends that the PUC initiate a rule making and schedule a workshop to address standby rates specifically.