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Combined Heat and Power Steering Committee

Combined Heat and Power Steering Committee. August 20, 2014. Advancing Industrial Energy efficiency and the CHP Partnership. 2014 CHP Meeting Schedule Sub-committee Status Work Group Meeting #4 Other CHP Activities Roundtable Discussion Next Steps and Action Item Recap. 3.

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Combined Heat and Power Steering Committee

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  1. Combined Heat and Power Steering Committee August 20, 2014

  2. Advancing Industrial Energy efficiency and the CHP Partnership • 2014 CHP Meeting Schedule • Sub-committee Status • Work Group Meeting #4 • Other CHP Activities • Roundtable Discussion • Next Steps and Action Item Recap

  3. 3 Objectives/Outcomes • Tool s and resources to help industry clear CHP hurdles – technical and financial • Informational materials/workshops • Screenings and assessments • Suite of policy and legislative recommendations

  4. 2014 CHp Schedule

  5. Sub-committee Statustechnical applicationEducation and outreachpolicyfinancing • Each committee has met 3 times with the exception of the policy committee which has met twice • Committee members/stakeholders are actively participating in sharing the work load • Sub-committee work items are being rolled into a CHP Action Plan for Kentucky • Committees will continue to collaborate on specific items and pass along information via the main work group

  6. 6 Sub-committee Progress and Interaction

  7. 7 Finance Committee Recent Work Items • August 13th Presentation for Electricity Price Structure by Cheryl Eakle and Jason Volz • Defined all components of a non-residential electric bill • Variation in Application of Demand Charge, Ratchet and Standby Rates • Scenarios examined with and without CHP • Looked at the effect of an unplanned outage with demand ratchet on the utility bill. • August 13th Presentation for Natural Gas Outlook by Jason Willan of Fellon McCord • Increased domestic production seems to have reduced volatility, but the supply/demand balance remains tight. Prices should trend higher due to coal retirements, LNG exports, regulations, and mfg demand, but expected to remain below peak levels of mid 2000s.

  8. Finance Committee Upcoming Work • Discussion of Industrial Revenue Bonds with the Economic Development Cabinet • Review of the White Oak Case Study for a CHP performance contract • Continue ESA Discussions • Are there CHP scenarios outside of those outlined in the 2012 PSC memo? • Continue Standby Rate Discussions • Review State rates and application in conjunction with demand ratchet clauses • Review possibility of USDA or other programs and applicability to CHP

  9. POLICY COMMITTEE RECENT DISCUSSSIONS • Presentation was given August 14th by Jeremy Faust of GCEA about the ePAD legislation (PACE) • ePAD is an energy project finance tool that works through property tax assessments • Allows for longer term financing • May be seen as “off balance sheet” • Nationally $245 million worth of projects are in the pipeline using a similar (PACE) Financing mechanism. • Legislation will likely be proposed again in January • Thermal Sales • EKPC Spurlock Plant sells steam to Inland Container, but only because of additional boiler capacity (additional fuel used) • Looking for industrial case studies

  10. Policy Committee Next Steps • Letter will be drafted requesting PSC opinion of CHP-related issues. • Information will be relayed to the Policy committee as it becomes available for: • Permitting Issues – waiting on Tech SubCommittee • Interconnection Guidance - waiting on Tech SubCommittee • Rate Issues - waiting on Finance SubCommittee • Air Quality Regulation Impacts – 111(d) – comments to EPA due Oct. • Third Party Arrangements – need to clarify with PSC, per 2012 staff opinion • CHP as coop-owned asset – opportunity?

  11. Technical Committee Recent Discussions • A presentation was given August 6th regarding maintenance of reciprocating engines by Steve Killian of the Wayne Co • Used by over ½ of CHP applications in the US • Well proven technology with a lifetime maintenance cost of <.75 cents/kWh • Maintenance requirements are well documented • A lube analysis can optimize reliability while reducing downtime and maintenance costs • Development of Air Permitting Guidance for CHP • Will also discuss in Policy committee as necessary • State-wide Interconnection requirements being reviewed • Will also discuss in Policy committee as necessary • Also working on: • Vendor list, Heat Load Guidance, CHP Reference Library

  12. Technical committee next steps • Upcoming Sub-committee Items • Turbine Maintenance • Tentative Presentation in October from Jeff Fassett of IEM Energy Consultants • Waste Heat to Power References • Discussion of cited reports and opportunities for KY • Fuel Issues • Infrastructure • Availability

  13. Education and Outreach Work Items

  14. EDUCATION//OUTREACH CONTINUED • Manufacturers/Commercial Facilities/Institutions → End Users • Message: Reduce energy costs; more control of energy consumption; reliability; reduce GHGs • Public Policy Makers • Message: Opportunity for greater competitive edge • Utilities • Message: Distributed generation can help with peak shaving; power quality; achievable/controllable • Resource Assistance Providers → Promotion/Networking i.e. Small Business Development Centers, Economic Development Agencies, ADDs, Local Chambers of Commerce, Local Officials • Message: Present simplified, unbiased, solution for issues; Legitimize; opportunity for information sharing and voluntary participation • Equipment Manufacturers • Message: Make sure that the message is correct and completely accurate; make aware of initiative • Designers • Message: What is it? What types of considerations for including CHP? What are the issues involved?

  15. 15 Additional CHP Activities • Work Group Meeting Number 4 • September 10th 10:30am 300 Fair Oaks, 301D • CHP Workshop • November 6th, Location TBD • CHP Action Plan Status • KPPC/DEDI Drafting, over 50% complete • Technical Screening Opportunities • One Performed, two more potential

  16. Roundtable and next steps • Next Meetings are proposed for October 15th and December 17th at 9am (Third Wednesday of every even month) _____________________________________________________________________________ DEDI – KY DEPARMENT FOR ENERGY DEVELOPMENT AND INDEPENDENCE * KAM – KENTUCKY ASSOCIATION OF MANUFACTURERS KPPC – KENTUCKY POLLUTION PREVENTION CENTER * U.S. DOE – CHP TECHNICAL ASSISTANCE PARTNERSHIP - SOUTHEAST

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