Section 454.4 Of Article 1. Rates From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 3. >> Article 1.
454.4
. The commission shall establish rates for gas which is
utilized in cogeneration technology projects not higher than the
rates established for gas utilized as a fuel by an electric plant in
the generation of electricity, except that this rate shall apply only
to that quantity of gas which an electrical corporation serving the
area where a cogeneration technology project is located, or an
equivalent area, would require in the generation of an equivalent
amount of electricity based on the corporation's average annual
incremental heat rate and reasonable transmission losses or that
quantity of gas actually consumed by the cogeneration technology
project in the sequential production of electricity and steam, heat,
or useful work, whichever is the lower quantity.