Combined Heat and Power (CHP) Program Overview

Combined Heat and Power, referred to as cogeneration, is the simultaneous generation of useful heat and electricity from a single fuel source.  The CPUC has programs to support the deployment of CHP, recognizing the potentially substantial contributions CHP can make to the state's energy needs and greenhouse gas mitigation objectives. 

CHP Proceedings

The CPUC oversees the investor-owned utilities’ purchase of electricity generated by the CHP Facility that is not used onsite or by the thermal host associated with the CHP Facility. The CPUC maintains procurement options and development incentives, with specific requirements defined in the following proceedings. 

Recent Updates & Documents

  •  Proposed Decision Granting SoCalGas’ application to establish a DER Tariff with Modifications 
  • D.15-06-028 Regarding Combined Heat and Power Procurement Matters  
  • D.14-10-046 Establishing EE Savings Goals and Approving EE Programs and Budgets  
  • List of QF/CHP Decisions and Resolutions pursuant to the QF/CHP Settlement.  
  • CHP Program Semi-Annual Reports (updated 2014-07-07) - Download a zip folder containing the current and all previous Semi-Annual Reports. Each Report has aggregated information on the IOUs' CHP procurement and data on how individual projects contribute to the IOUs' MW and GHG reduction targets under the QF/CHP Settlement. Each successive report provides cumulative information on the IOUs' CHP resources.  
  • CHP Reporting Template (Version 3.3.3) - Download the CHP Program Semi-Annual reporting template.  Reported facilities are fictitious and are provided for demonstrative use only.

Qualifying Facility Semi-Annual Reports 

Quick Links

Overview of CHP Program Targets

Commission Decision (D).10-12-035 adopted a comprehensive Settlement for Qualifying Facilities and Combined Heat and Power. Pursuant to the Decision, the investor owned utilities (IOUs) must procure a minimum of 3,000 MW of CHP for the entire QF/CHP Program and reduce GHG emissions consistent with the ARB Scoping Plan.  

To track progress toward the MW and GHG reduction targets the IOUs must prepare CHP Program Semi-Annual Reports. 

GHG Emissions Reduction Targets

In the ClimateChange Scoping Plan, ARB has identified a CHP GHG Emissions Reduction Target of 6.7 million metric tonnes (MMT) by 2020.  The investor owned utilities (IOUs) are responsible for 4.8 MMT of the statewide target, which is allocated among the IOUs based on retail sales from bundled and unbundled customers within their service territories. 

Emission Reduction Target
Utility  IOU Retail Sales
                         (%) 2012                         
 
IOU Target by 2020
                                (MMT)
                              
PG&E 

44.7

2.16

SCE 

44.9

2.17

   SDG&E       

10.4

0.50

Total 

100.0

4.8

 

Refer to the GHGERT Calculator (updated 2015-03-27) for the assumptions used in the allocation of the Emissions Reduction Target 

Megawatt Procurement Targets

Megawatt Procurement Targets
Utility  Target A
               (MW)
              
Target B
                (MW)
              
Target C
                (MW)
              
Total
          (MW)
        
SCE 

630

378

394

1,402

PG&E 

630

376

381

1,387

  SDG&E   

60

50

50

160

Total 

1320

804

825

2,949*

 

*SDG&E will procure an additional 51 MW by 2018 in the Second Program Period to meet the minimum procurement Target of 3,000 MW. 

Three MW targets periods (A, B, and C) correspond to the three CHP competitive solicitations (or Request for Offers or RFOs) and are outlined in the QF/CHP Program Settlement Term Sheet (Section 5.1.2).  The three CHP RFOs will be scheduled at regular intervals. The IOUs initiated their first RFO by the end of February 2012.  

To view the Term Sheet and other background information, visit the QF/CHP Settlement page. 

 


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