Client: Pennsylvania Governor and State Legislature. Possible secondary client the PA Public Utility Commission.
Policy Option 1: Continue on with the status quo. Do nothing to further encourage CHP.
Under this option CHP would likely continue to grow at rates similar to historical trends.
Policy Option 2: Make it easier for companies to offer heat and power services by reducing the regulatory barriers and providing incentives to companies willing to offer both heat and power from the same source.
Under this option CHP would likely develop at a faster pace mostly by the existing public utilities, existing electric choice companies. and other large players able to move into the market and make profits from both the services and the incentives.
Policy Option 3: Make exemptions for small scale providers of heat and power selling to customers within a relatively small distance of the providers.
Under this option CHP might start getting developed by small startups, who might be more disposed to innovative solutions.
This is a very relevant problem to the course topic! Nice topic! The question has a lot of details and you mentioned the correct client for handling this case. Three policy options are straight forward and easy to understand. The three options, including Continue on with the status quo; Make it easier for companies to offer heat and power services by reducing the regulatory barriers and providing incentives to companies willing to offer both heat and power from the same source; and Make exemptions for small scale providers of heat and power selling to customers within a relatively small distance of the providers. I personally like the second solution works best in this case because this is the most cost effective way to solve the problem. Well done!
ReplyDeleteIn this case, you have some compelling policy options. In fact, policy option two stuck out as a great way for government to get involved with this issue. If, however, I consider the policy options in aggregate, I would say they are generally well thought out. Looks like a great start, and for this reason, I anticipate this burgeoning into a a great presentation.
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