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Combined Heat and Power

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Procurement Processess

The CHP Program, as defined by the QF/CHP Settlement, includes six procurement options through which CHP facilities may obtain a contract:  1) CHP Request for Offers (RFO); 2) Qualifying Facility (QF) Power Purchase Agreements (PPA) for projects 20 MW or less under the Public Utility Regulatory Policies Act (PURPA); 3) Optional As-Available PPAs; 4) conversion to Utility Prescheduled Facilities (UPF); 5) CHP Feed-in Tariff (Assembly Bill, AB 1613); and 6) Bilaterally negotiated CHP PPA.

Several of these options employ the short run avoided cost (SRAC) energy pricing structure outlined in the Settlement.  See the QF/CHP Settlement Term Sheet Section 10 for pricing details. See the CHP Feed-in Tariff webpage for details on pricing under that program.

CHP Request for Offers (RFO) PPA.   CHP facilities with nameplate capacity greater than 5 MW are eligible to participate.  Pricing will be determined according to the executed PPA.  A pro forma contract is available for this procurement process.

Less than or Equal to 20 MW PURPA PPA.  All QFs less than 20 MW are eligible for this program.  Facilities are paid capacity prices established in D.07-09-040 and energy prices as determined by Short Run Avoided Cost (SRAC).  A standard offer contract is available for this procurement process.

Optional As-Available PPA.  This program is designed for CHP Facilities larger than 20 MW, with annual average energy deliveries less than 131,400 MWh.  These facilities must operate at a minimum 60% efficiency.  A standard offer contract is available for this procurement process.

Utility Prescheduled Facilty (UPF).  The program is designed for existing CHP facilities that convert to a utility controlled, dispatchable generation facility.

AB 1613 Feed-in Tariff (FiT).  See the CHP Feed-in Tariff page for more detailed information.


See IOUs' pages for additional details on each of these procurement options, including complete eligibility requirements and pro-forma and standard offer contracts where available:

CHP Procurement Page   RFO 1 RFO 2 RFO 3


2011 2013 2014


2011 2013 2014


2012 2013 2014


Additional Procurement Information

SDG&E Local Capacity Requirements RFO. Pursuant to D.14-03-004, SDG&E issued a LCR RFO. New qualified CHP facilities, or Utility Prescheduled Facilities with incremental (expanded or repowered) capacity are eligible to participate in this solicitation.

SCE Local Capacity Requirements RFO. Pursuant to D.13-02-015, SCE issued a LCR RFO. New qualified CHP facilities, or those with incremental (expanded or repowered) capacity are eligible to participate in this solicitation.

CAISO Regulatory Must Take Generation. Effective December 2012, combined heat and power resources that are no longer subject to a grandfathered power purchase agreement can retain a higher regulatory must-take generation scheduling priority for the capacity dedicated to their industrial hosts.

Short Run Avoided Cost (SRAC)

Energy and capacity prices for QFs, including monthly SRAC prices, are available from each of the utilitites' websites:

Recent Updates, Documents

Qualifying Facility Semi-Annual Reports:

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.

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