Utah

Number of Sites with CHP: 15

Total Installed Megawatts: 205

Sample Companies and Facilities Using CHP

Industrial:

Commercial

Institutional:

  • Central Weber Wastewater Treatment Plant *renewable
  • City of Springville
  • North Davis County Sewer Improvement District *renewable
  • University of Utah
  • Utah State University

Agricultural:

  • Wadeland Dairy *renewable
  • Sunderland Dairy *renewable

* Contact Us if you know of additions or subtractions from this list.

Utah Policies Affecting CHP

Statewide Interconnection Procedures: Yes

Waste Heat Included in Renewable Portfolio Standard: Yes

  • Utah only has a renewable portfolio goal, not a standard. Utilities are encouraged to meet the standard to the degree it is cost-effective to do so. Recycled energy is included as eligible in meeting the goal. See the policy (waste heat is defined in section 54-17-601).
  • About waste heat in renewable portfolio standards

CHP in Utility Demand-Side Management: No

Output-based Emission Standards: No

Fair Standby Rates: No

  • Standby rates are excessively high in PacifiCorp's Utah territory. They can prevent projects from going forward or cause existing projects to shut down. These standby rates need to be re-evaluated to include the risk of systems going down and the benefits that CHP can provide to the grid.
  • About standby rates

CHP-Specific Incentives: No

Assessment of CHP Conditions in Utah

Utah Electricity Prices

Average Retail Electricity Prices

Among the southwest states, Utah ranks as having the lowest commercial and industrial prices, followed closely by Wyoming. These prices are substantially below the national average by about three cents lower for commercial prices and about two cents lower for industrial prices.

Utah average commercial retail electricity price (2010) 7.17 ¢/kWh
National average commercial retail electricity price (2010) 10.26 ¢/kWh
Utah average industrial retail electricity price (2010) 4.94 ¢/kWh
National average industrial retail electricity price (2010) 6.79 ¢/kWh

Source: EIA; data is year-to-date through December 2010.
Note: All data post January 2010 are preliminary estimates based on a cutoff model sample.

Utah Natural Gas Prices

Average Retail Natural Gas Prices

Natural gas prices in Utah, like the electricity prices, are the lowest among the southwest states, staying two or more dollars per thousand cubic feet cheaper than the national average for commercial prices. Industrial prices have stayed about on par with the national average but with less variance (providing cheaper gas during peak times). This is coupled with about the lowest volatility among the southwest states, and provides Utah with a distinct advantage when it comes to a CHP project being economically viable.

When evaluating CHP, a considerable amount of attention needs to be placed on the price of natural gas, and where it may be headed in the future. The combination of relatively low electric prices and rising natural gas prices makes it more difficult for a CHP project to be economic and generate cost savings, but there are still going to be successful applications for the appropriate use of CHP. The best applications are those that value high reliability, have higher electric rates during peak times, spend a high percentage of their energy bill on air conditioning, and/or potentially could make use of a "waste fuel."

Utah average commercial natural gas price (2010) 6.88 $/TCF
National average commercial natural gas price (2010) 9.23 $/TCF
Utah average industrial natural gas price (2010) 5.54 $/TCF
National average industrial natural gas price (2010) 5.34 $/TCF

Source: EIA; data is year-to-date through December 2010.

Key Utah Contacts

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** Click on a state to learn more about the
status of CHP in that state