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The Influence of Regulation on the Decision to Cogenerate
Abstract
This paper will be primarily on the Public
Utility Commission of Texas' Substantive Rules
that explicitly address cogeneration
(Section 23.66). The original rules, which were
implemented following the mandate of the Texas
legislature, have undergone substantial change.
More specifically, rules have been structured to
promote a market for capacity without harming
existing and future ratepayers. Discussion will
focus on how the existing rules can directly
influence the decision to cogenerate.
Part One provides a brief history of the
Section 23.66 rules. Part Two discusses the
pricing methodology adopted by the Commission for
"firm" and "as-available" power supplied to a
utility. Part Three presents a brief discussion
of the wheeling rule that was recently adopted by
the Commission. Part Four discusses the
importance of standby rates on the decision to
cogenerate. A discussion of the problems that
may arise from traditional cost allocation
methodologies for the design of standby rates is
also provided.
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Citation
King, J. L. II (1986). The Influence of Regulation on the Decision to Cogenerate. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /93057.