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Regatta Solutions Presents Case for AB674

Combined Heat and Power

Combined Heat and Power (CHP) provides power and heating to manufacturing and business sites.

Last week Andrea Marr, VP of Energy Services at Regatta Solutions, and other members of the California Clean Distributed Generation Coalition (CCDC) met with California state lawmakers at the State Capitol. The focus of the conversations was new legislation that would remove the unfair burden of departing load charges from most onsite cogeneration projects. This bill, AB674, sponsored by Assemblyman Kevin Mullin (D-22), would still require customers with clean onsite generation to pay utility fees for electricity purchased from the grid. It would, however, remove the requirement for these customers to pay what amounts to an additional 75-100% sales tax on these clean generation projects.

Regatta Solutions believes that a transition away from fossil fuel dependency is good for our environment, our air, and our economy. We also believe that cogeneration can ease the transition to a renewable economy by providing very efficient and powerful onsite generation and alleviating congestion on the grid. Industries like manufacturing and food production are extremely power intensive and no amount of solar on the roof will cover their usage. In all but very rare cases, manufacturers will continue to rely on the grid for all of their power, consuming more on hot days and putting a strain on the grid during peak times like the rest of us.

Without legislation to remove the burden of departing load charges, California is unlikely to meet Governor Brown’s goal of 6,500 MW of onsite power from cogeneration by 2020. In many cases, removing this charge would single handedly make projects financially viable. Regatta Solutions urges legislators to pass AB674 as quickly as possible to ensure California’s energy future remains clean and affordable.

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Regatta Solutions takes a stand at the state capital in an effort to generate support of CHP (combined heat and power) and its use within the California.

Regatta Solutions takes a stand at the state capital in an effort to generate support of CHP (combined heat and power) and its use within the California.CCDC, SGIP, CHP, GHG, Energy benefits, Smart Power, Regatta Solutions,

March 26, 2014

Yesterday in Sacramento, legislators and advocates convened to give clarity and attention to the economic and environmental benefits of CHP.  This effort is part of the California Clean Distributed Generation Coalition (CCDC) focused on educating policy makers on the benefits of CHP including: energy efficiency, affordability, reduction of green house gas emissions (GHG), high power reliability and secure power.

Regatta Solutions urged lawmakers to take action by eliminating hurdles that CHP providers and technology distributors face in delivering solutions to clients and customers. These actions include: elimination of departing load charges, changes making standby charges equitable across competing technologies, recognition of CHP value to the grid and Cap & Trade.

Lawmakers like Assembly member, Nancy Skinner, provided encouragement of progress by expressing an understanding and enthusiasm towards this type of clean and green smart power solution.  Assembly Member Skinner’s leadership should be applauded, specifically her introduction to save the SGIP (Self Generation Incentive Program) through the introduction of AB1499. This Assembly Bill will extend the program beyond the previously imposed end date of December 31, 2014.

In summary, there is much work to be done to heighten the awareness of CHP within the energy efficiency market. Regatta Solutions efforts with CCDC are focused on getting the message out that CHP adaptation will improve the competitive positioning of California businesses through lower energy cost and reduction of Green House Gas production.  In addition, prominent discussion and debate must take place by the California legislature on securing the electric grid from cyber penetration before a cataclysmic event occurs.  CHP definitely has a role to play in this key homeland security issue.

Steven Acevedo, President & CEO
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