Regulation-Induced Uncertainties Seriously Impair Investment in District Heating Systems

摘要

This paper deals with electric utility regulation. It discusses specific cases (South Carolina Gas and Electric Case) and demonstrates how the current method of case-by-case adjudication of issues dealing with cost-of-service and rates-of-return on invested capital create uncertainty by failing to establish standard regulatory responses to recurring issues. The goal of the Community Systems Program is to help communities develop and put into practice effective energy-conservation programs. To do this, the program develops and applies approaches to community energy conservation measures. One strategy in the program is to use by-product heat from power generation in place of scarce fuels. Studies indicate cogeneration district heating systems can yield significant scarce fuel savings. Obstacles result from the introduction of this method of supplying energy needs, though. Some institutional problems presented in this paper underscore how the existing regulatory framework generates uncertainty; this uncertainty inhibits the willingness to invest in district heating systems. (ERA citation 04:030416)