Wisconsin State Information

CHP Installations
Total of 19 CHP systems, producing a little over 89 MW, are known to be in operation. Wastewater Treatment facilities constitute the biggest installed CHP market segment in Wisconsin (36,000 kW) followed by landfill installations (34,000 kW). Statistics on the installation of these systems in various commercial sectors and a searchable database of these installations are also available. The database shows the names of the plant owners or operators, plant location and power generation capacity for each installation. If you are aware of other CHP installation sites within Wisconsin, please submit the information to us with this user-friendly input form.

CHP Market Potential
One DOE study estimates total market potential for the commercial and institutional sector in Wisconsin to be in the range of 800 to 2,700 installations. Total potential of these systems for producing electric power is estimated to be in the range of 1,300 to 2,400 MW. In addition, there is a potential for 19,000 CHP system installations for multifamily homes. A brief discussion on the potential is given below. The commercial and institutional market in Wisconsin represents 3 to 5% of the projected DOE long-term goal of 47 gigawatts of installed CHP capacity that was developed as part of the CHP Roadmap Workshop.

Wisconsin's vast agricultural resources constitute an inexpensive fuel source and ample opportunities for biomass fired CHP. Wisconsin Governor Scott MacCallum stated it as one of the goals to increase the use of cost-effective renewable resources in Wisconsin. As such Wisconsin Act 9 requires that renewable energy make up 2.2 percent of each retail electric provider's sales by 2012. These requirements can be used to support CHP development in the state.

Energy Pricing
Energy pricing, for both fuel and electricity, can have significant impacts on the financial viability of CHP. Further discussions of energy pricing in Wisconsin is available below and at the EIA website. Check with you local energy providers for specific pricing in your area.

CHP Partners
There are more than 70 companies in Wisconsin that are engaged in CHP system applications or have CHP system capabilities. This indicates a high interest from the private market to the deployment of CHP technologies. This interest is complemented by a multitude of local and regional organizations that are involved with the promotion of CHP applications. A list of these companies is available.

Financial Incentives for CHP Systems
The State of Wisconsin has several incentives that are available to businesses interested in installing CHP systems. As mentioned above, Wisconsin Act 9 hat that requires renewable energy make up 2.2 percent of each retail electric provider's sales by 2012. To compliment this Act the state has established a Public Benefits Fund to support biomass development with $3,800,000 available funding per year.

CHP development in Wisconsin may also benefit significantly from the (federal) 2002 Farm Bill, since CHP systems might qualify as an energy efficiency improvement on farm and ranches.

A brief discussion on this subject is available below.

Utility Contacts
A list of utility companies interested in working with businesses to install CHP systems is available. Some direct links to utilities in Wisconsin are shown in the following table.

Status of CHP Policy Issues
Summaries of the policy of the State of Wisconsin in the following areas are available: Access and Interconnection Rules, Rates, Standby Charges and Exit Fees, General Progress with State Electric Deregulation, Emerging Legislation, and Potential Partners / Advocates of CHP.

The EIA provides a monthly status of electricity restructuring on a State-by-State basis. They also provide a status of the deregulation of the natural gas industry on a State-by-State basis.

CHP Installation Details
The sites identified represent the best efforts of the Midwest CHP Application Center (MAC) to identify actual and potential CHP installations in Wisconsin. Other existing or candidate CHP sites may exist; they can be submitted by clicking here.

As can be seen wastewater treatment facilities constitute the biggest installed CHP market segment in Wisconsin followed by installations at landfills.

CHP Market Potential Details
The potential market capacity for CHP in Wisconsin is estimated to be up to 1,300 to 2,400 MW in the institutional and commercial sector and an additional 19,000 installations in the multi-family residential sector. This potential may only be realized if the regulatory and policy issues become more supportive of CHP installations. Additional market potential capacity could be realized, if incentives are provided.

Programs by the Department of Administration (DOA) constitute further support for CHP systems. The DOA compiled the “Wisconsin’s Renewable Energy Yellow Pages,” which contain information on firms active in the field of renewable energy development in the state.

Commercial/Institutional Market
One DOE study pertaining to the commercial market potential for CHP in the United States was performed by ONSITE Energy Corporation report that was prepared for the Energy Information Administration and completed in January 2000. It is titled "The Market and Technical Potential for Combined Heat and Power in the Commercial/Institutional Sector." (Click here to see complete report.)

For Wisconsin ONSITE estimated a total commercial/industrial market potential for CHP between 1,300 to 2,400 MW. This represents 3 to 5% of the projected DOE long-term goal of 47 gigawatts of installed CHP capacity that was developed as part of the CHP Roadmap Workshop.

Multi-Family Residential Market
Besides commercial and industrial applications CHP systems also have potential market viability for multi-unit residences (those with 2 or more units). Compared to conventional HVAC systems, the installation of CHP systems are particularly competitive when it comes to new construction or complete replacement of old HVAC systems.

Since all new and replacement HVAC systems need to be permitted in Wisconsin, permitting data provides a good estimate of buildings where CHP systems may be a potential alternative. Applying the following assumptions the potential market for CHP applications for multi-unit residences can be estimated:

• New construction remains at or near the same level as in the year 2001 (12,993 units),
• HVAC systems need to be replaced every 20 years, therefore units installed in 1981 would need to be replaced in the year 2001, and
• The number of HVAC units replaced in 2001 is consistent with the number of units installed in 1981 (6,398 units).

Applying these assumptions the new building permit data was obtained for 1981 and 2001 (Source: http://www.census.gov/const/C40/Table2/tb2u8099.txt), those with less than 2 units were not considered. Therefore the market potential for multi-unit residential CHP installation in Wisconsin for 2001 is estimated to be about 19,000 units.

Energy Pricing Details
The EIA's State Energy Price and Expenditure Report 1999 provides a composite table of the historical energy prices in Wisconsin by sector and fuel type.

Fuel Costs
Most of the CHP generation technologies use natural gas as a primary fuel, such as reciprocating engines, combustion turbines and microturbines. For these systems fuel constitutes the majority of the variable/operating cost. High natural gas prices, such as those experienced in the year 2000, could have negative affects on the CHP market development.

In an Energy Information Administration report titled "U.S. Natural Gas Markets: Recent Trends and Prospects for the Future," the EIA identifies several reasons for the gas price movement in 2000 among which are significant demand increase following a period of low growth in gas consumption (from 1996 to 1999) and a relatively cold winter in 2000. In its mid-term outlook, the EIA states, "Because natural gas resources are expected to be adequate to meet future demand through 2020 and technological progress for exploration and development is expected to be sustained, natural gas prices at city gate are projected to return to a lower price path around 2005 and gradually increase to about $3.05 per million Btu (MMBtu) in 2020."

Electric Pricing
In the annual Energy Information Administration report titled “Annual Energy Outlook 2002 with Projections to 2020”, the EIA projects that the average electricity prices will decline from 6.9 cents per kilowatt-hour in 2000 to 6.5 cents per kilowatt-hour in 2020. Electricity industry restructuring is expected to contribute to declining prices on a national level through reductions in operating and maintenance costs, administrative costs, and other costs. Electricity prices are projected to decline to 6.3 cents per kilowatt-hour by 2006 then rise in the last 5 years of the forecast as natural gas prices rise.

In Wisconsin the cost of electricity for commercial customers has shown relative stability over the last recorded 10 year period (1990-1999) based on information from the EIA’s State Energy Price and Expenditure Report 1999 (The cost of electricity to the commercial consumer has gone from $17.04/MMbtu in 1990 to $17.38/MMbtu in 1999. However there have been fluctuations in pricing over that period.

Source: State Energy Price and Expenditure Report 1999, Table 307: Commercial Sector Energy Price and Expenditure Estimates, Selected Years 1970-1999, Wisconsin; Prices in Nominal Dollars.

Wisconsin ranked 39th highest in electricity costs at 5.53¢/kWh for average cost to the customer across all customer classes (Source: EIA State Electricity Profiles 2001 - Wisconsin). The average price paid by commercial customers for natural gas in Wisconsin was $7.60 per MMBtu (2001), which is below the average of $8.10 per MMBtu; the average price of electricity charged by utilities to commercial customers was 6.03 cents per kWh, which is significantly below the average of 7.36 cents per kWh (Sources: Energy Information Administration reports on natural gas and electricity)

The five major electricity suppliers in Wisconsin are shown below in the Table. Wisconsin, however is host to over 100 Co-op and municipally owned electric suppliers.

CHP Partner Details
(Source: "CHP Baseline Analysis for the Wisconsin Market," a report prepared by the Midwest CHP for Buildings Application Center, September 2002.)

The following lists provide information on architectural firms, property management firms, engineering firms, manufacturers and energy supply companies, which are involved in Wisconsin with CHP applications. In addition to that, the lists also provide information on firms which have the interest and capability to get involved with CHP applications either because they promote energy efficiency, green building technologies or have other CHP supporting missions.

Architectural and Engineering Firms
Architectural and Engineering firms are important to promoting CHP technologies because the most economical time to install a CHP system is during the construction of a new building or during an extensive renovation, when the central heating and cooling plant is being initially installed or completely replaced. This is because the payback period associated with the cost to install a CHP system need only be justified on the cost differential between the CHP system and a conventional central cooling/heating system which otherwise would have to be installed. Architectural and engineering firms are generally engaged in the design and installation of such facilities in commercial and light industrial buildings. Following is a list of architectural firms and engineering firms that are potential allies in the promotion of CHP installation in Wisconsin. There are currently about 50 architectural and engineering firms that are able to developed and deploy CHP systems in Wisconsin.

Architectural Firms

• AIA Wisconsin
  http://aiaw@aiaw.org
• Architectual Design Group
  http://www.adg-architects.com
• Architecture Network, Inc.
  http://www.archnetwork.com
• Dimension IV
  http://www.dimension-iv.com
• ECOME
• Engberg Anderson Design Partnership Inc.
  http://www.eadp.com/
• Eppstein Uhen Architects, Inc.
  http://www.eppsteinuhen.com
• Flad & Associates, Inc.
  http://www.flad.com
• Hoffman Corporation
  http://www.hoffman.net
• Kahler Slater
  http://kahlerslater.com
• The Kubala Washatko Architects, Inc.
  E-mail: zkron@tkwa.com
• Potter Lawson, Inc.
  http://www.potterlawson.com
• Louis Wasserman & Associates
  http://www.ticon.net/~lwasserman
• The Zimmerman Design Group, Inc.
  http://www.zdg.com

Engineering Firms

• Charles Equipment Co.
  Capabilities: CHP Turnkey Installations
• Cummins NPower LLC
  Capabilities: CHP Turnkey Installations
• Microgy Cogeneration Systems, Inc.
  Capabilities: Developer of anaerobic digester systems dairy, swine and poultry operations producing renewable electric power
• GHD, Inc.
  Capabilities: Design and install anaerobic digestors, installation of gen-set units for heat production.
• Robert E. Lee & Associates
  http://www.releeinc.com
  Capabilities: A full-service consulting firm specializing in and environmental engineering, planning, surveying and comprehensive laboratory testing.
• Crane Engineering Sales Inc.
  http://www.crane-eng.com
  Capabilities: Process equipment design and equipment supply, including piping, metering, filters, valves, and design of piping
• Energy Integration Corp.
• American Resource Recovery
• Applied Technologies, Inc.
  http://www.itiae.com
• Camp Dresser & Mckee
• Dorgan Associates, Inc.
  Capabilities: Consulting engineers and scientists in energy modeling, commissioning, buildings, HVAC, and fuel cells.
• Emcon/OWT Solid Waste Services
  http://www.emconinc.com
  Capabilities: Site analysis for energy recovery projects, landfill gas-to-electric projects, small engine/generator sets for on-site electric consumption
• Environmental Technology Associates
• Graef Anhalt Schloemer
• R J Miller Associates, Inc.
• Foth & Van Dyke
• Montgomery Watson, Inc.
• R W Beck, Inc.
  Capabilities: Consultant Engineers
• Triad Engineering
• WD Meadows & Associates
• Residential Energy Services
  Capabilities: Efficient design and retrofit.
• Community Builders
  Capabilities: Products and services for solar heat and electricity, high performance homes, indoor air quality, energy conservation, energy design, and building science analysis.
• La Salle Associates
  Capabilities: CHP Turnkey Installations
• Stanley Consultants, Inc.
  Capabilities: CHP Engineering, environmental, and construction Services
• Ballard Engineering
  Capabilities: CHP Turnkey Systems
• GKC-EME
  Capabilities: CHP Turnkey Installations
• Primera Engineering
  Capabilities: HVAC Engineering, CHP Potential
• GLHN A&Es
  Capabilities: HVAC Engineering, CHP Potential
• Cuh2a, Inc.
  Capabilities: HVAC Engineering, CHP Potential
• Epstein and Sons International, Inc.
  Capabilities: HVAC Engineering, CHP Potential
• Jacobs Facilities, Inc.
  Capabilities: HVAC Engineering, CHP Potential
• General Energy Corp
  Capabilities: HVAC Engineering, CHP Potential
• Globetrotters Engineering Corporation
  Capabilities: HVAC Engineering, CHP Potential
• Patrick Engineering, Inc.
  Capabilities: HVAC Engineering, CHP Potential
• Sebesta Blomberg & Associates, Inc.
  Capabilities: HVAC Engineering, CHP Potential

Property Management Firms
Property management firms are important to promoting CHP technologies because they are the operators of most commercial buildings in which CHP technologies would be suitable and therefore are interested in reducing energy costs. They often are the decision makers as to what type of central service systems are installed. In many of the buildings that they operate, they are already required by newer building codes to provide some sort of emergency generation electric power generation equipment. Since they are already required to install generation equipment, the cost differential to install CHP over a conventional central heating/cooling system is less and easier to justify. In addition, it gives them the ability to provide higher power reliability to tenants, which is becoming an important issue to many business operators. The following is a list of property management firms that promote CHP installations in Wisconsin.

• BOMA Milwaukee
• Affiliated Capital Corp.
  http://www.affiliatedcapital.com
  Property Type(s): Conventional apartments, Condominiums, federally assisted housing
• Dominium Management Services, Inc.
  Property Type(s): Conventional apartments, federally assisted housing
• Farmer Management and Development Co.
  Property Type(s): Conventional apartments, condominiums, federally assisted housing, office buildings
• National Realty Management, Inc.
  http://www.national-realty.net
  Property Type(s): Conventional apartments, condominiums, office buildings, retail properties, and shopping centers, single family homes, warehouses and mini-warehouses
• Oakbrook Corp.
  Property Type(s): Conventional apartments, federally assisted housing, office buildings, retail properties, and shopping centers
• Ogden & Co., Inc.
  http://www.ogdenrealty.com
  Property Type(s): Conventional apartments, condominiums, federally assisted housing, cooperative housing, industrial parks, office buildings, retail properties and shopping centers, single family homes, warehouses and mini-warehouses
• Optimum Property Management
  Property Type(s): Conventional apartments, condominiums, cooperative housing, industrial parks, office buildings, retail properties and shopping centers, single family homes, hotels and motels, warehouses, and mini-warehouses
• Polacheck Property Management Corp.
  http://www.polacheckmgmt.com
  Property Type(s): Industrial parks, office buildings, retail properties and shopping centers
• Trammell Crow Co./Central Division
  Property Type(s): Industrial parks, office buildings, warehouses, and mini-warehouses

Equipment Manufacturers and Suppliers
Manufacturers of power generation equipment, absorption chillers, and desiccant dehumidification equipment, and their sales representatives are important to promoting CHP technologies for obvious reasons, to sell their equipment. In most cases these manufactures have established a market presence and have built relationships with those most likely to install CHP technologies.

In the mean time, it is still important to strive to find technically and financially suitable applications where manufactures and their sales can work together, along with engineering and architectural firms to install "custom" systems. The following section is a list of manufacturers that promote CHP installations in Wisconsin.

Equipment Manufacturers

• Waukeshaw
  Eastern Regional Office
  Capabilities: Reciprocating Engines
• Kohler Engines
  Capabilities: Reciprocating Engines
• Trane
  Capabilities: HVAC systems, Air Handling Products
• Caterpillar
  Capabilities: Electric Generation Equipment Manufacture
• Solar Turbines Incorporated
  Capabilities: Electric Generation Equipment Manufacturer
• Generac Power Systems
  Capabilities: Power Generators
• Detroit Diesel
• Hess Microgen
  Capabilities: Generators with Heat Recovery
• Eisenmann
  Capabilities: Air Purification
• ADA Systems
  Capabilities: Evaporative Cooling Systems, Energy Recovery
• Huntington Environmental Systems, Inc.
  Capabilities: Emissions Control Equipment
• Munters
  Capabilities: Desiccant Dehumidification Products
• GE Power Systems
  Capabilities: Combustion Turbine Products
• Ingersold Rand
  Capabilities: Microturbines
• International Fuel Cells, Inc.
  Capabilities: Fuel Cells
• Yazaki
  Capabilities: Thermally Activated Chillers
• Wartsilla
  Capabilities: Reciprocating Engines
• York
  Capabilities: HVAC Systems
• Honeywell
  Capabilities: Microturbines
• Broad
  Capabilities: Thermally Activated Chillers

Energy Suppliers
Local energy suppliers are also important to promoting CHP. Many have formed subsidiary companies to promote distributed generation, especially the gas supply companies. However, they may not necessarily be considering CHP because they often can justify the cost of distributed generation based on the peak shaving savings of electrical generation and it provides heat in winter and reduces the gas consumption for boilers/furnaces used for heating. In the case of electrical supply companies, distributed generation may be viewed as a threat to the parent company which may have rate structures that pose a disincentive to the installation of distributed generation and therefore to CHP. In these cases, distributed generation is viewed as more acceptable if it is on the electric suppliers side of the meter, which makes CHP a difficult option to promote since the electric generation source may be at some distance form the customer making the use of waste heat impractical. However, Minergy, a subsidiary of Wisconsin Electric has developed a process, which converts wastewater solids into glass aggregate using an integrated CHP process. The following section is a list of Energy Suppliers in Wisconsin.

Natural Gas Providers:

• WE Energies (Wisconsin Gas Company)
  http://www.we-energies.com
• Wisconsin Public Service Corp. (Wisconsin Fuel and Light)
  http://www.wpsr.com
• Alliant Energy, Wisconsin Power and Light
• Madison Gas and Electric
  http://www.mge.com
• Northern States Power Co.

Electricity Providers:

• Investor Owned Electric Utilities
• WE Energies
  http://www.we-energies.com
• Wisconsin Public Service Corp.
  http://www.wpsr.com
• Alliant Energy, Wisconsin Power and Light
• Madison Gas and Electric
  http://www.mge.com
• Northern States Power Co.

Cooperative Electric Utilities
[National Rural Elect Cooperative Association (NRECA) Members only]

• Adams-Columbia Electric Co-op Friendship
• Badger Unified Co-op Services Friendship
• Barron Electric Cooperative
• Bayfield Electric Co-op, Inc.
• Central Wisconsin Electric Co-op
• Chippewa Valley Electric Co-op
• Clark Electric Co-op
• Dairyland Power
• Dunn Electric Co-op
• Eau Claire Energy Co-op
• GEN~SYS Energy
• Head of the Lakes Electric Co-op
• Jackson Electric Co-op
• Jump River Electric Co-op
• Mid-Wisconsin DBS, LLC
• Oakdale Electric Co-op
• Oconto Electric Co-op
• Pierce-Pepin Cooperative Services
• Polk-Burnett Electric Co-op
• PowerPlus Engineering, LLC
• Price Electric Co-op, Inc.
• Richland Electric Co-op
• Riverland Energy Cooperative
• Rock County Electric Co-op Association
• Rural Electric Supply Co-op
• Scenic Rivers Energy Co-op
• Skyview DBS
• St. Croix Electric Co-op
• Taylor Electric Cooperative
• Vernon Electric Co-op
• Washington Island Electric Co-op, Inc.
• Western Wisconsin Communications Co-op Independence
• Wisconsin Federation of Co-ops

Municipal Electric Utilities of Wisconsin (MEUW) Members
(MEUW in an association of the 82 municipal electric utilities in the state)

• Algoma Utility Commission
• Arcadia Electric Utility
• Argyle Utility
• Bangor Municipal Utility
• Barron Light and Water Commission
• Belmont Municipal Light & Water Utility
• Benton Electric and Water Utility
• Black Earth Electric Utilities
• Black River Falls Municipal Utilities
• Bloomer Electric and Water Utility
• Boscobel Utilities
• Brodhead Water & Light Commission
• Cadott Light & Water Department
• Cashton Municipal Light & Water Plant
• Cedarburg Light & Water Commission
• Centuria Municipal Electric Utility
• Clintonville Water & Electric Utility
• Columbus Water & Light Department
• Cornell Municipal Lighting Department
• Cuba City Light and Water Plant
• Cumberland Municipal Utility
• Eagle River Light & Water Department
• Elkhorn Light & Water
• Elroy Electric and Water Utility
• Evansville Water & Light Department
• Fennimore Municipal Utilities
• Florence Water & Light Commission
• Gresham Municipal Water & Electric
• Hartford Utility Department
• Hazel Green Light & Water Utility
• Hustisford Utilities
• Jefferson Water & Light Department
• Juneau Utility Commission
• Kaukauna Electric & Water Department
• Kiel Utilities
• La Farge Municipal Utilities
• Lake Mills Light & Water Department
• Lodi Utilities
• Manitowoc Public Utilities
• Marshfield Electric & Water Department
• Mazomanie Electric Utility
• Medford Electric Utility
• Menasha Utilities
• Merrillan Electric & Water Utility
• Mount Horeb Utilities
• Muscoda Light & Water Commission
• New Glarus Municipal Light & Water
• New Holstein Utilities
• New Lisbon Municipal Light & Water
• New London Utility Commission
• New Richmond City Utilities
• Oconomowoc Utilities
• Oconto Falls Water & Light Commission
• Pardeeville Public Utilities
• Plymouth Utilities
• Prairie du Sac Electric Department
• Princeton Light & Water Department
• Reedsburg Utility Commission
• Rice Lake Utilities
• Richland Center Municipal Utility
• River Falls Municipal Utility
• Sauk City Utilities
• Shawano Municipal Utilities
• Sheboygan Falls Utilities
• Shullsburg Electric Utility
• Slinger Electric Utilities
• Spooner Municipal Electric Utility
• Stoughton Electric & Water Utilities
• Stratford Water & Electric Department
• Sturgeon Bay Utilities
• Sun Prairie Water & Light Commission
• Trempealeau Electric Committee
• Two Rivers Water & Light Department
• Viola Municipal Electric Utility
• Waterloo Water & Light Commission
• Waunakee Water & Light Commission
• Waupun Public Utilities
• Westby Electric & Water Utility
• Whitehall Municipal Electric Utility
• Wisconsin Dells Water & Light
• Wisconsin Rapids Water Works & Lighting Commission
• Wonewoc Municipal Water & Light Department

Associations and Organizations Involved with CHP Deployment
Federal, State, and regional government entities are becoming interested and concerned about distributed energy within their areas. With that interest comes significant potential opportunities for making CHP systems an important part of their distributed generation philosophy. Government entities are increasing their interest in CHP because of the energy savings and reduced emissions it provides. Many are promoting its development. While the Federal government, through the Office of Distributed Energy Efficiency and Reliability has provided substantial support, the most effective deployment of CHP technology will come from regional and local activities. This is true because most of the barriers are due to local issues, such as site permitting, interconnection requirements and studies, local utility pricing, and local building codes and standards. These barriers can be overcome with support from regional and local entities. The Midwest area and Wisconsin, are home to many non-profit organizations and associations that have come forward to support the deployment of CHP, in fact the Midwest appears to be leading the way in promoting the deployment of CHP.

In Wisconsin there are several key organizations and companies, which support CHP development. FOCUS ON ENERGY is a public private partnership offering energy information and services to residential, business and industrial customers in the state of Wisconsin. The partnership is comprised of the Wisconsin Department of Administration, Wisconsin Energy Conservation Corporation, Milwaukee School of Engineering, Energy Center of Wisconsin, PA Consulting and Hoffman York. FOCUS ON ENERGY can provide expert advice, project assistance and financial support for energy savings and efficiency projects. Also, three of the main manufacturers of CHP technologies are headquartered in Wisconsin: Waukeshaw Engine, Kohler Engine and Trane.

The following is a list of these associations and organizations associated with CHP in Wisconsin.

• American Institute of Architects
  http://www.aia.org
• BOMA Building Owners and Managers Association
  http://www.boma.org
• FOCUS ON ENERGY
  http://focusonenergy.com
• Delta Institute
  http://www.delta-institute.org
• RENEW Wisconsin
  http://Renewwisconsin.org
• Energy Center of Wisconsin
  http://www.ecw.org
• Energy Resources Center – University of Illinois at Chicago
  http://www.erc.uic.edu
• Environmental Law and Policy Center
  http://www.elpc.org
• Gas Technology Institute
  http://www.gastechnology.org
• Interstate Renewable Energy Council (IREC)
  http://www.eren.doe.gov/cro
• Manufacturing Extension Program (MEP)
  http://www.mep.nist.gov/index3.html
• Wisconsin Department of Natural Resources
  http://www.dnr.state.wi.us/
• University of Wisconsin Center for Cooperatives – Utilities
  http://www.wisc.edu/uwcc/
• Wisconsin Public Service Commission
  http://psc.wi.gov/
• Midwest CHP for Buildings Application Center
  http://www.CHPCenterMW.org
• Midwest CHP Initiative
  http://www.USCHP.org/regional
• Midwest Cogeneration Association
  http://www.cogeneration.org
• Midwest Energy Efficiency Alliance (MEEA)
  http://www.elpc.org/energy/
• Citizens Utility Board
  http://www.wiscub.org
• Wisconsin Department of Administration — Division of Energy
  http://www.doa.state.wi.us/depb/index.asp

Financial Incentive Details
The state has established a Public Benefits Fund to support biomass development with $3,800,000 available funding per year. CHP development in Wisconsin may also benefit significantly from the (federal) 2002 Farm Bill, since CHP systems will likely qualify as an energy efficiency improvement on farm and ranches.

Status of CHP Policy Issue Details
In October 1999 the Wisconsin Legislature passed Wisconsin Act 9. Wisconsin Act 9 (Wis. Stat. 196.025(4)) which requires the Public Service Commission (PSC) to “study the establishment of a program for providing incentives for the development of high-efficiency, small-scale electric generating facilities […].”

In response, the Public Service Commission submitted a report titled “Report to the Legislature on the Development of Distributed Electric Generation in the Sate of Wisconsin.” The report was issued in December 2000. The scope of the report included “small-scale, high efficiency generating technologies” including combined heat and power systems, photovoltaic, wind power, fuel cells, microturbines, and internal combustion generators. The report reviewed each of these technologies, compares emissions, and summarized barriers and economic incentives for these technologies. The major findings of the report were as follows:

• The lack of statewide uniform technical standards can constitute a barrier for interconnecting Distributed Generation (DG) to the utility grid.
• Uniform procedures for testing and certification of interconnection equipment are needed.
• Complex interconnection contracts can add unnecessary cost and time to the installation of small-scale distributed generation. A detailed contract that may be appropriate for large customer-owned generators can create an unnecessary burden for a small-scale generator.
• A barrier to market entry is created by interconnection rules and practices that vary from one utility service territory to the next.
• Impediments to interconnection are created by outright prohibition of parallel generation, study fees, engineering review fees, additional metering fees, Transmission and Distribution charges, and standby fees.
• Unreasonable insurance or indemnification requirements can unduly increase the cost of non-utility DG.
• The current limitation that net energy billing is applicable only to units of less than 20 kW is too restrictive.
• The existing rate structure includes a number of disincentives to non-utility scale generation.
• The individual and cumulative effect of small-scale diesel generators could lead to air quality degradation in certain areas.

Based on its findings, the PSC concluded as follows:

• Any incentive program to encourage greater use of high efficiency, small scale DG in the state of Wisconsin should include the updating of statutes, administrative rules, and utility tariffs.
• Establish a working group made up of stakeholders, such as equipment installers and manufacturers, customers, energy advocacy groups, environmental groups, gas and electric utilities, and staff from the Wisconsin PSC, DNR, DOA, and DOR to develop additional recommendations as needed.
• Establish uniform, simplified standards based on IEEE P1547 for DG systems.
• Establish statewide pre-certification and testing.
• Establish a statewide-standardized contract for high-efficiency, small-scale DG systems that include a) a utility interconnection fee appropriate for the size of the installation and b) a standard formula for determining the cost of distribution upgrades associated with DG interconnection.
• Establish a tariff to cover a) an expansion of the “Net Energy Billing” tariff availability for customers with service from the current 20 kW maximum to a maximum based on the manufacturer’s equipment rating, b) buy-back rates that vary depending on the environmental and grid benefits and dispatchability, and c) rules that provide for the utility to cover all or a portion of interconnection costs where there is a demonstrated benefit to the distribution grid.
• Owners of DG units that provide a benefit to society at large, such as improved “environmental performance” could be granted a production based tax credit.
• Provide state assistance to local units of government in siting DG technologies under existing planning and zoning authorities.
• Revision of Wis. Admin. Code 113.0207, “Requirements for utility rules for interconnection of small customer-owned generation facilities with the utility system.”

On the commercial/industrial side the Wisconsin Public Service Commission is currently conducting a study of power-park concepts, which could include CHP systems. Weston Solutions has been hired to perform a feasibility study for this concept.

One of the biggest efforts in support of CHP development in Wisconsin pertains to the development of standardized interconnection guidelines. The Public Service Commission (PSC) of Wisconsin and a multi-interest coalition, called the Distributed Resources Coalition (DRC), are leading this effort.

The interest group, “RENEW Wisconsin,” funded by the Joyce Foundation lead the initial process to come up with recommendations to the interconnection standards. RENEW Wisconsin recommended updates to Wis Admin. Code 113.0207, which had been developed in 1982 to “protect the safety of utility personnel and the integrity of the electrical system.” RENEW Wisconsin’s efforts were concentrated on the development of a standardized interconnection agreement and the interconnection of facilities of 20 kWe and less in size.

On May 18, 2001 the Joint Finance Committee of the Wisconsin Legislature voted unanimously to include some distributed generation resources provisions in the state budget, including the requirement that the PSC promulgate rules regarding interconnection standards, safety and reliability issues, tariffs, net metering, real time pricing fees, etc. It also required the PSC to complete draft rules within six months of the effective date of the budget. The standards would apply to utilities with a connected load of 1200 MW or more.

RENEW Wisconsin and the Wisconsin Interconnection Collaborative developed Interconnection Guidelines (Guidelines) in Draft form (Draft 5.9). The Guidelines do not apply to cooperative electric utilities. However, according to the Guidelines, “Cooperative Electric Utilities are encouraged to adopt these guidelines.” Draft 5.9* of the Draft Interconnection Agreement contains the following provisions:

Facility Categories
The Guidelines establish 4 categories of DG facility sizes:

Category 1: 20 kW or less
Category 2: Greater than 20 kW to 200 kW
Category 3: Greater than 200 kW to 1 MW
Category 4: Greater than 1 MW to 15 MW

Insurance Requirements
Applicants interconnecting a DG facility have to provide liability insurance in the following amounts:

Category 1: $300,000
Category 2: $1,000,000
Category 3: $2,000,000
Category 4: Negotiated

Application Forms
Applicants for a Category 1 DG facility file a Standard Application Form, called PSC Form 6027 whereas applicants for a Category 2 through 4 file a different form (Form PSC 6028). Upon filing of the Application Form the electric provider performs an Application Review and determines whether or not an Engineering Review and/or a Distribution System Study needs to be performed.

Response Timelines
The timelines for the studies according to DRAFT 5.9 are listed in the table below:

Study Fees
The respective fees for the Application Review, the Engineering Review and the Distribution System Study are as follows:

Pre-Certified Equipment
The Guidelines provide for acceptance of pre-certified equipment such as anti-islanding protection and power quality related distribution interfaces. The Guidelines state that pre-certified equipment if certified to national standards “does not need the design scrutiny by the electric provider that non-certified equipment typically requires.”

Net Metering
The Guidelines also refer to the fact that DG facilities using renewable resources with a capacity of 20 kWe or less are eligible for net energy metering. This means that DG facilities can offset their associated load consumption and are compensated for any extra energy delivered to the electric provider at the rate as specified by the electric provider’s tariff. The individual electric provider defines what constitutes a renewable resource. In general, natural gas fired cogeneration systems do not qualify as renewable resources, however, biomass fired cogeneration systems are generally considered a renewable resource.

Wisconsin 's interconnection standards became law on February 1, 2004. The standards were published in the Wisconsin Administrative Register. Under this law, there will be four categories of DG facilities, differentiated by the installation's nameplate capacity:

• Category 1: 20 kW or less
• Category 2: Greater than 20 kW to 200 kW
• Category 3: Greater than 200 kW to 1 MW
• Category 4: Greater than 1 MW to 15 MW

The new law defines the application procedures that utilities and customers must observe during the application process. According to this law, utilities must respond to inquiries and conduct engineering reviews within a specified amount of time that varies according to installation size. All applicants are expected to furnish a site plan that shows the location of the disconnect switch and a one-line schematic diagram. The law also spells out the technical, legal and financial obligations that applicants must accept prior to interconnection. Generally speaking, these requirements become more stringent as installation size increases. The new law will apply to all public utilities, and will govern new DG systems up to 15 MW that are operating in parallel with electric utilities.

The 20 kW dividing line between Category 1 and Category 2 installations corresponds with the maximum capacity allowable under the state's net energy billing regulation. Systems that qualify for net energy billing are not considered commercial ventures that require commercial liability insurance.

The Wisconsin Public Service Commission (PSC) has finalized the required forms which are now available on its website's Distributed Electric Generation Forms page. For more information on Wisconsin 's finalized interconnection rules, contact Paul Helgeson at paul.helgeson@psc.state.wi.us or (608) 266-3905.

General Status of Progress on Deregulation

* (As development of this Agreement proceeds newer versions will be issued. Revision 5.95, issued July 31, 2002, is available here in PDF format.)

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