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CHP State-by-State Information
→ ArizonaCHP in Arizona
NUMBER OF SITES: 41
INSTALLED MEGAWATTS: 810
Education Sector
- Cave Creek Unified School District #93
- Estrella Mountain Community College
- Northeast Valley Education Center
- Northwest Community College
- Paradise Valley Community College
- University of Arizona
Healthcare Sector
- Good Samaritan Hospital
- Kingman Regional Hospital
- Thunderbird Samaritan Hospital
- Tucson Medical Center
- Yuma Regional Medical Center
Resorts and Lodging
- Heritage Hotel
- Phoenician Golf & Tennis Resort
- Scottsdale Princess Hotel
- Starwood Hotels & Resorts
Government/Public Buildings
Industrial
- Asarco San Manuel Mining & Smelting Facility
- Chemical Lime Co
- Intermountain Refining Company, Inc.
- Gould Electronics
- Phelps Dodge Mining Co
- Ralston Purina
Other
- Orangewood Retirement Home
- Scottsdale Village Square Retirement Center
- Biosphere 2 Center
- United Dairymen of Arizona
- El Pollo Loco
- Laundry Room, 1607 E. Base Rd
- Western Savings
- The Grove at Black Canyon (business park)
- U.S. Army - Fort Huachuca
(See the
Installation Database for more information on these installations)
Arizona’s commercial and industrial electric rates have risen a
little over the past five years with predictable seasonal swings.
Commercial prices were a few cents lower than the national average and
industrial rates were slightly below the national average.
| Arizona average
commercial retail electricity price (2006) |
6.96 ˘/kWh |
| National average
commercial retail electricity price (2006) |
9.46 ˘/kWh |
| |
|
| Arizona average
industrial retail electricity price (2006) |
5.24 ˘/kWh |
| National average
industrial retail electricity price (2006) |
6.16 ˘/kWh |
| * Source:
EIA. |
Unlike other mountain states that saw a very large price spike in the
winter of 2005/2006, Arizona’s gas prices have steadily increased, in
general, from year to year.
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”.
| Arizona average
commercial natural gas price (2006) |
12.11 $/MCF |
| National average
commercial natural gas price (2006) |
11.99 $/MCF |
| |
|
| Arizona average
industrial natural gas price (2006) |
9.90 $/MCF |
| National average
industrial natural gas price (2006) |
7.86 $/MCF |
| * Source:
EIA. |
- The Arizona Corporation Commission convened a Working Group in
July 2006 to begin work on developing statewide interconnection
standards. The draft interconnection rules (in progress) combine
elements of the interconnection standards from FERC, Wisconsin, New
Jersey, Texas, and the 1999 Arizona standards. They will have three
different levels/processes for interconnection:
- Level 1 Super Fast Track: Certified inverter-based systems 10 kW
and under
- Level 2 Fast Track: Certified systems 2 MW and under
- Level 3 Study Track: All other systems 10 MW and under.
- The ACC runs a program that allows net metering for cogeneration
systems less than 100 kilowatt (kW). Net energy is purchased at
avoided cost, and the program applies to all IOUs and Rural Electric
Cooperatives
- Check the DSIRE
Database for the latest updates.
- Check our
Grants Page for any state or
federal grants that may be applicable for CHP systems in Arizona.
- Also check the
DSIRE Database and the
EPA
CHP Partnership for additional incentives for Arizona.
- If you are thinking of putting in a project, you may to see if we know of any one-time grants or other funding
opportunities.
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