To further encourage the use of combined heat and power ("CHP") in New York State, the New York State Energy Research and Development Authority ("NYSERDA") has contracted with the Pace Energy and Climate Center to develop a Standby Rate Estimator ("Estimator") and Standby Rate Manual ("Manual") to help businesses analyze the energy bill impacts of deploying an onsite CHP system.
Responding to the needs for transparency and for easily accessible and understandable information about possible standby charges, this Manual describes a new web-accessible and interactive Standby Rate Estimator that makes it possible for users to estimate the standby charges that would be incurred if a CHP system were built. It also allows users to see whether the Standby Tariff will result in total charges in excess of the charges they would incur under otherwise applicable rates. In addition, users are able to compare the delivery charges (total bills without commodity charges) they would be billed under the Standby Tariff to those they would incur under otherwise applicable rates. In certain cases, described in this Manual, a user might be able to obtain an exemption from the Standby Tariff and the Estimator will help the user determine whether to seek such an exemption. In addition, the standby charge derived through use of the Estimator can be input into already available programs that analyze the economics of installing a CHP system to obtain a more complete analysis than would otherwise be possible.
This Manual begins with an introduction to standby rates. It includes a discussion of the rationale for the rates, a description of their impact on customers and a summary description of tariff mechanics. The Manual next provides an introduction to the Estimator, describing its purpose; necessary inputs and where to find them; inevitable uncertainties when using the Estimator; and a walk-through example of how to take advantage of the Estimator. The Manual concludes with a glossary of terms, a compendium of links to utility standby tariffs for all New York State distribution companies and contact information for each of the distribution companies.