Tennessee

Description: Nashville Electric Service does not offer a defined standby rate, so customers interested in purchasing standby service would be charged under their regular tariff or develop a special contract. Under the general tariff, customers would be charged a high demand rate and moderate energy rates. Billing demand is determined by the maximum 30-minute demand of the month or 30% of the contract demand, whichever is higher. This service is viewed as neutral toward CHP.

Memphis Light, Gas and Water provides standby energy service, but the energy supply itself must be contracted through the Tennessee Valley Authority. The TVA charges a moderate reservation fee based upon contract demand and Memphis Light, Gas and Water charges a high demand charge for its energy delivery and a relatively high energy charge as well. This service is viewed as unfavorable toward CHP.

Links:

• Nashville Electric Service’s rates can be found here.
• Memphis Light, Gas and Water’s commercial rates can be found here.
• More information about best practices in utility rate design can be found on the EPA’s CHP Partnership website.

Last Updated 08/03/2009

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