With solar and wind power making distributed generation an increasing factor in California’s energy market, utilities face the challenge of covering their fixed costs. A new tariff issued by California to Sempra Energy’s Southern California Gas Co. aims to benefit utilities and their customers.
The state’s Public Service Commission has issued its first Distributed Energy Resources Service (DERS) tariff to SoCalGas. The DERS tariff allows SoCalGas to own and operate Combined Heat and Power (CHP) facilities on or near a customer’s location, and provide output from the CHP to the customer at regulated prices.