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Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102

Combined Heat and Power

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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.

Assembly Bill (AB) 32, the Global Warming Solutions Act of 2006, aims to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020.  As the lead state agency implementing AB 32, the Air Resources Board (ARB) created a Climate Change Scoping Plan (2008) that identified CHP as the third most significant source for GHG emissions reductions and calls for 4,000 megawatts (MW) of new CHP capacity to result in 6.7 million metric tons (MMT) of GHG reductions.

CHP Proceedings

Recent Updates, Documents

  • 7/29/14 ALJ Ruling seeking comment, due 9/17/14, and reply comments, due 10/8/14, on CHP procurement issues.
  • List of QF/CHP Decisions and Resolutions pursuant to the QF/CHP Settlement.
    • CPUC has completed Final Resolutions for all of PG&E and SCE's Advice Letters submitted pursuant to their first CHP RFOs.
  • CHP Program Semi-Annual Reports (updated 2013-10-16) - 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 Climate Change 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.

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 GHG ERT Calculator (updated 2014-01-16) for the assumptions used in the allocation of the Emissions Reduction Target.

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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