California Regulators Call Cogeneration Vital to State's Energy Future

Sep 15 - MARKET WIRE

E-Wire -- Support for policies that encourage cogeneration, a source of efficient electricity for California, received a strong endorsement from top state energy officials in a meeting to consider California's energy plans. In a September 8 meeting of the Joint Agency Energy Action Plan (consisting of the California Energy Commission, California Public Utilities Commission, California Power Authority), officials called cogeneration critically important to the state's energy security. The Draft Energy Plan establishes shared goals and specific actions to ensure that adequate, reliable, and reasonably-priced electrical power and natural gas supplies are achieved and provided through policies, strategies, and actions that are cost-effective and environmentally sound for California's consumers and taxpayers.

"We're doing everything we can to encourage cogeneration," said William Keese, Chairman of the California Energy Commission. In a presentation to the Joint Agency members, James Hendry of the Public Utilities Commission said current state policy is to keep existing cogeneration operating in the state. He expressed concern that many existing cogeneration contracts are up for renewal and said the state should encourage five-year contracts so that cogeneration can operate on a profitable basis in the state and continue to provide much-needed electricity.

Presently, key California policymakers are making important decisions about where the state's utility companies will obtain their electricity in the future. Cogeneration is a major contributor in meeting California's energy needs as it provides enough electricity to meet 12 percent of the state's demand for electricity.

In the cogeneration process natural gas is converted to electricity to power a facility. In essence thermal heat and steam are generated to run equipment and machinery. Numerous universities and hospitals and various industries use cogeneration to power their facilities, providing them with dependable power when the grid goes down. If the facility does not use all the electricity it generates, that electricity goes back to the electrical grid for use by consumers.

By being an efficient use of energy, cogeneration provides major environmental benefits. The Environmental Protection Agency has identified cogen as a leading candidate for reducing CO2 emissions and global warming.

For more information visit www.cogenworks.com

 Bill George 916-498-7730 http://www.cogenworks.com  

SOURCE: KP Companies