Introduction and Purpose

By Decision (D.) 03-01-006, the Commission directed the Energy Division to develop recommendations concerning the appropriateness of including turbo-expanders in the self-generation incentive program, and, if so, at which incentive level. Turbo-expanders may be used in place of throttling valves to step down high-pressure, transmission-level natural gas to lower pressures for customer usage at distribution level. The recovery of excess pressure can be used to produce electrical power.

Staff recommends that turbo-expanders not be considered eligible for incentives at any level.