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Pennsylvania
This page is designed to provide background information on CHP activity in Pennsylvania.
Summary of Activity
Installed CHP Capacity
Potential Market for CHP
Electricity Pricing
Natural Gas Pricing
State Restructuring Activities
State Agency Contacts
Electric Utilities Websites
CHP Requirements & State Support Programs Links
Summary of Activity
A significant percentage of the electrical generation in Pennsylvania takes advantage of its waste heat, at 7.2% of total generating capacity this is below the 8% national average in 2003. 3.8% of this capacity is in the industrial sector, 1.6% is in the commercial. Electrical prices are below the national average and have gradually fallen over the last 10 years. Natural gas has experienced price fluctuations along with the all other states in the region and seen prices climb 24% over the last 12 years. There has been small amount of CHP and distributed energy activity in the state to this point. There remains 36,627MW of CHP potential within the state, the bulk of it within the industrial sector.
Installed CHP Capacity
Currently, Pennsylvania 's CHP market generates 7.2% of its total energy market, amounting to a capacity of 36,627MW. This energy is primarily generated through 95 major CHP facilities. Commercial attributions account for 587.5MW of the total market through the use of 37 different facilities. The remainder is attributed to industrial and other uncategorized sectors, having 47 facilities producing 1389.1MW and 11 facilities producing 661.6MW, respectively.
Potential Market for CHP
According to the US Department of Energy, installations of CHP systems in Pennsylvania's commercial and industrial sector have the potential to generate 2410 to 7480 MW, representing 5-16% of DOE's 47GW long-term goal.
Electricity Pricing
Since 1990, Pennsylvania 's commercial electrical costs have followed a gradual decline. Commercial consumers payments have slightly reduced from $0.0819 per kWh in 1990 to $0.078 per kWh in 2000 ($/MBtu = .3413kWh). This figure is below the 2000 national average of $0.0736 per kWh.
Natural Gas Pricing
When evaluating CHP, a considerable amount of attention needs to be placed on the price of natural gas. Natural gas prices in the state of Pennsylvania have steadily increased over the past few years. Compared to the national average of $6.57/kft 3 in 2002, Pennsylvania 's prices are slightly higher than average having a price of $7.44/kft 3 that year.
The combination of falling electric prices and climbing prices for natural gas make the "spark spread" between the cost of electrical and fuel energy smaller which tightens the profitability of CHP technology but there are still going to be successful applications for the appropriate use of CHP. Issues with the reliability of power in light of both the tropical storm and grid power disruptions to the north will motivate users to explore DG options. In the case where DG is already being installed, waste heat recovery is likely to decrease the operating cost of the installation. DG remains distinct from emergency backup generators, which are typically not permitted to operate continuously due to the emissions permit that they are issued with.
Links to more detailed energy price data:
EIA's Natural Gas Navigator
EIA's State Energy Prices
Links to more detailed energy price data:
EIA's Natural Gas Navigator
EIA's State Energy Prices
State Restructuring Activities
Pennsylvania 's legislation was among one of the first in the country to deregulate it's electrical market making customer choice available to consumers as early as 1996. Since then over 278,243 customers have chosen to use an alternate supplier. Pennsylvania has one of the country's most powerful electric markets having over 70 companies competing in it.
Links:
Summary of Restructuring by Mid-Atlantic Energy Coalition
Status of State Electric Industry Restructuring from DOE EIA
Pennsylvania Public Utility Commission
Department of Environmental Protection Air Quality Regulations Site
Allegheny Power (West Penn Power)
Citizens' Electric Of Lewisburg
FirstEnergy (Met Ed and Penelec)
Pennsylvania Power Light Company (PPL)
Pike County Light Power Company
CHP Requirements & State Support Programs Links
Regulatory Requirements for Small Electric Generators
