Cashing in On CHPs: Increasing Energy Reliability and Savings with Combined Heat and Power (CHP)

What is old will become new again. While the idea of producing electricity/steam and delivering them to the customer on-site with less dependence on traditional utility-supplied power has been around for decades, it has in recent years seen a re-emergence. Hospitals, universities, manufacturers and other large electric users have found that producing electricity and usable steam (collectively, Combined Heat and Power) may provide them substantial economic and operational benefits. However, potential CHP users need economic, financial and legal guidance in efficiently steering these CHP projects to completion. While having elements of large-scale construction projects, CHP facilities involve much more. This session will explore CHP evaluation, development, operation, project structure, including risk management and relevant contracts. 

 

Alan Seltzer and John Povilaitis, attorneys with Buchanan Ingersoll& Rooney, along with economists Frank Graves and Metin Celebi from the Brattle Group will discuss: 

 

• What is a CHP? 

• Why do a CHP now? 

• How a CHP works 

• The Benefits of CHPs and who can best benefit from them 

• Is a CHP project right for you? 

• CHP Success Stories 

• CHP evaluation process 

• CHP Project Structures and Key Contracts 

• Allocation of Project Risks in the Contracts

 

John F. Povilaitis focuses his practice on administrative law matters with special emphasis on energy, communications, water/wastewater and transportation public utility law. His practice ranges from proactive counseling to litigation before administrative agencies, and appellate matters before state and federal courts.

 

With nearly 20 years of service for the Pennsylvania Public Utility Commission (PaPUC), John has significant regulatory experience in electricity, natural gas, water, transportation and communications law. After joining the Commission in 1978, he served as assistant counsel, federal division deputy chief counsel and first deputy chief counsel before assuming the position of chief counsel in 1989. John served as the Commission's counsel in the litigation that established the Pike County Doctrine.

 

In 1998, he joined Ryan, Russell, Ogden & Seltzer PC, a Central Pennsylvania-based law firm that primarily handled various public utility matters. John concentrated his practice on state and federal regulatory proceedings, legislative activities, litigation before state and federal courts, facilities siting proceedings, land use and eminent domain matters and complex commercial transactions.

 

Previously, John served as chairperson of the Pennsylvania Bar Association's Public Utility Law Section and as editor of the Section newsletter.

 

Since 1990, he has been a course planner and speaker at the Pennsylvania Bar Institute's biannual Public Utility Law Conference and more recently he has served as a course planner for the biannual PaPUC Bench Bar Conference.

 

Alan M. Seltzer focuses his practice on domestic and international electric, gas, water, transportation and renewable energy matters with a concentration on transactions and litigation before various state and federal courts and administrative agencies. He represents public utilities and other stakeholders before the Pennsylvania Public Utility Commission.

 

His current emphasis is on obtaining the state regulatory approvals for the merger or acquisition of public utilities, and addressing the real estate, regulatory, tax and financing phases of renewable energy project development. He is Co-Chair of the firm's Power Generation, Renewable & Utility Practice Group.

 

In July 2015, Alan was appointed to the Siting and Routing Workgroup of the Pennsylvania Pipeline Infrastructure Task Force – a stakeholder-driven effort that developed policies, guidelines and tools to assist in pipeline development, as well as long-term operation and maintenance. In this role, he worked collaboratively to develop best practices related to plan