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Q: Why is PGE offering the Dispatchable Standby Generation (DSG) program?
- The tight supply of electricity and resulting high prices have created new business opportunities for PGE customers who can simultaneously use power, while making more power available in PGE’s territory. The DSG program improves a participant’s bottom line by having PGE:
- Cover the operating and maintenance costs of the DSG power system
- Contribute to the customer’s standby generator system installation
PGE benefits by accessing new power resources for all its customers. By linking many generators to the electric distribution system and turning them on at peak demand hours, PGE and program participants are helping keep the price of power down and the supply up with an innovative business relationship.
Q: What happens if we need power at the same time PGE is using the DSG system?
- Your backup generator is always available to serve you without interruption. Your generator and PGE are synchronized and operate in parallel, automatically backing each other up. If one system fails, the other takes over — significantly increasing your reliability.
The DSG system is set up so your facility’s loads are automatically served first and then any excess power you generate flows into the PGE system. For example, if your building load is 1,000 kilowatts, and the generator is putting out 1,500 kilowatts, only 500 kilowatts are serving other PGE customers.
Q: Will the DSG program put more wear and tear on my company’s generator?
- The DSG program will probably extend the life of your backup/emergency power system. The program operators regularly start up the generators and test them at full load. More frequent full load runs are better for the diesel engines. The tests also save the costs of load bank testing and assure your organization that the equipment will start up and function properly in a power outage.
Q: Will PGE help pay for new generators? Does PGE help if I’m installing new generators?
- The generators themselves are not funded by PGE. However, whether you are building a new facility with backup power, adding generators or upgrading your switch gear, PGE helps fund the installation. PGE provides most of the cost for the latest generator control and paralleling circuit breaker technology. Many high-tech companies are already using this equipment for seamless transition from generators to the power grid.
Q: Can you assure us that our emergency power system is maintained to our standards of reliability and quality?
- Yes, your facility’s staff and PGE will jointly decide on the most qualified maintenance provider. This may be your existing provider, your own staff or a new provider that best meets your needs. Our agreement with maintenance providers will include annual performance reviews and if they are not performing at the levels we expect, we can agree to change providers.
Q: Who is responsible for maintenance and repair?
- This is another win-win aspect of the program for participating businesses, institutions and PGE. All regular maintenance and any repair bills are paid by PGE. The utility sees this as a reasonable cost to assure that your generator is available at all times to participate in the program, and it lowers your cost of doing business. We estimate that this may easily save $50,000 to $100,000 over a five-year period.
PGE has created the DSG program with the highest standards. Should your equipment fail to function as required for your emergency/backup use, the maintenance provider selected by you and PGE will begin diagnosing the problem within four hours of notification. If appropriate, the provider will then repair or replace the equipment (at PGE’s discretion) with comparable items as required to meet your system’s needs.
Q: Who pays for fuel?
- PGE pays for fuel regardless of whether the fuel was used only for your needs or to serve the utility distribution system. We do require the use of transportation grade, low-sulfur, diesel fuel.
Q: Can I still participate if I choose to buy power from an independent supplier?
- Under Oregon’s restructuring law, you can choose to purchase your power from an independent provide. If you make this choice, you can still take advantage of the DSG program. You, PGE and your independent supplier would negotiate an agreement, which would provide accurate billing and properly account for the power used by your facility, even when the generators are operating.
Q: Are there any regulatory or tax issues I should be
aware of?
- Participating in the DSG program will not affect your taxes. Because PGE will own a portion of the system of which the generators are a part, the output of the generators will be considered PGE power. PGE will also handle all power regulation issues related to the operation of your DSG power system.
Q: Under what circumstances would my organization have to reimburse PGE for its investment?
- PGE is providing a significant investment to upgrade your property. PGE is counting on your generation to maintain an efficient power system and reduce costs. If you cancel the agreement without cause or without proper notice, most of the equipment would typically remain with you and you would be responsible for reimbursing PGE for the value of that equipment.
If PGE cancels the agreement, PGE will remove any PGE equipment and leave your facility in such condition as will enable you to operate the generators for your own backup use. Under these circumstances, no equipment reimbursement would be required.
Q: Can a business cancel the DSG agreement?
- In the unlikely event that PGE fails to maintain or repair the equipment as required in the agreement, you may cancel the contract before its normal expiration date. As mentioned above, the maintenance service provider is required to begin diagnosing a problem within four hours. If a problem cannot be fixed within 30 days, you would have the option to terminate the agreement.
Q: What happens if the actual project cost is greater than PGE’s projections because of unforeseen conditions?
- In a retrofit installation or for PGE owned equipment, PGE will be responsible for all cost over-runs related to items installed under the Dispatchable Generation Agreement. With a new facility or new generator plant, where you would have primary responsibility, we would negotiate an appropriate cost sharing solution.
Q: How is PGE handling the environmental impact of the DSG program?
- PGE cares a great deal about the environment. We will be installing oxidation catalysts on all DSG program engine-generators. These catalysts significantly reduce carbon monoxide (CO), hydrocarbons (HC) and odor from the diesel engines. Research is also underway to explore new ways to reduce nitrogen oxides (NOx) in the engines we use for the program. PGE is also doing extensive research on the use of dual fuels. This could create opportunities to burn natural gas instead of diesel oil in many generators, significantly reducing emissions into the air. Every generating system in the program is issued a permit by the Oregon Department of Environmental quality, assuring that the engines are operating within standards.
Q: How can I learn more about PGE’s Dispatchable Standby Generation program?
- Please contact your PGE representative or e-mail us. You may also call Mark Osborn, DSG program manager, at 503-464-8347.
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