When Disaster Strikes: Critical On-Site Cogeneration Issues Relating to Reliability & Liability

Abstract

Widespread disasters in recent years such as Hurricanes Katrina
and Sandy have focused attention upon the reliability of, and possible
legal issues relating to, on-site generation. This article focuses upon on-
site generation, such as synchronous cogeneration, which can start when
the grid is down, and other emergency back-up generation that has the
capacity to function during an electric distribution outage. Cogeneration
has the economic advantage of providing baseline electric and thermal
energy to the facility whether or not the grid is operational. Here we
concentrate on cogeneration and generation at healthcare facilities and
within multi-occupant residential dwellings and discuss certain legal
consequences arising as a result of failing to provide on-site power when
required to do so by law. We also discuss the potential consequences re-
sulting from the installation of cogeneration in multi-occupant residential
buildings when the owner has no legal obligation to make such an instal-
lation, and how such consequences, including obligations that arise, can
be addressed and potential legal liability mitigated.