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

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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

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2014 CHP SCHEDULE4

SUB-COMMITTEE STATUS

TECHNICAL APPLICATION

EDUCATION AND OUTREACH

POLICY

FINANCING

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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

Sub-committee Progress and Interaction 6

7FINANCE 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

o 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.

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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 clausesReview possibility of USDA or other programs and applicability to CHP

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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

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?

POLICY COMMITTEE NEXT STEPS10

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

TECHNICAL COMMITTEE RECENT DISCUSSIONS

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TECHNICAL COMMITTEE NEXT STEPS

Upcoming Sub-committee Items Turbine Maintenance

o Tentative Presentation in October from Jeff Fassett of IEM Energy Consultants

Waste Heat to Power Referenceso Discussion of cited reports and opportunities for KY

Fuel Issueso Infrastructureo Availability

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EDUCATION AND OUTREACH WORK ITEMS

TASKS TIMEFRAME

Workshops (2) June-Nov 14

Webinar (1) Sept - Nov 14

Networking Event (1)

Sept - Nov 14

Website Ongoing

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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?

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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

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ROUNDTABLE AND NEXT STEPS

Next Meetings are proposed for October 15th and December 17th at 9am (Third Wednesday of every even month)

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_____________________________________________________________________________DEDI – KY DEPARMENT FOR ENERGY DEVELOPMENT AND INDEPENDENCE * KAM – KENTUCKY ASSOCIATION OF MANUFACTURERSKPPC – KENTUCKY POLLUTION PREVENTION CENTER * U.S. DOE – CHP TECHNICAL ASSISTANCE PARTNERSHIP - SOUTHEAST