FinanCing Back Pressure Steam Turbine Cogeneration Systems

Abstract

Steam turbine cogene ration is "the newe st old technology." It w as
once the main source of our electricity in this countr y, but over the years
c ompani es ha ve bec ome mor e and more depend ent on large centralized
util ities to supp ly their electricity. Howe ver , as electricity costs rise
pl ant s are striving to find new wa ys to stream line the ir ope rations, and
low er their costs: the y are rediscovering cogeneration.
Deregulation has also pu shed energ y costs on to the corpo rate ra-
dar screen. Under deregulation, it seems clear that as utilities sell off
their electricity production assets and become "T& D'" (tran smi ssion and
distribution) companies, they int end to ensure that their backs are cov-
er ed , Here in Massachusett s, wh ere we' ve experienced "de reg ulation"
since March 1998, we find that the lion's share of energy char ges in our
new, more complicated bills, resides T&D.
Across the country, the transition to deregulation ha s been un e ven ,
and in mo st states there are still el ement s of a regulated mar ket. Mean-
whi le, the lur e of a trul y free mark et (and, of course, lower pr ices) ha s
had man y electric cust omer s ad opt ing a "wait and see" attitude .