Southwest Gas commercial and industrial customers in Arizona have an opportunity to increase the energy efficiency and lower energy costs of their businesses. Most CHP systems are configured to generate electricity or mechanical power, recapture the waste heat and use it for space heating, water heating, industrial steam loads, air condition, humidity control, water cooling, product drying or any other thermal need. Alternately, CHP may use excess heat from industrial process and turn it into electricity.

Is a CHP System Right for Your Business?
These high-efficiency CHP systems, formerly known as cogeneration, produce localized, on-site power and heat from one fuel source, such as natural gas. They can vary in size from several kilowatts (kWs) to several megawatts (MWs) of produced electric power, and can be used in a variety of commercial, industrial and institutional applications.

CHP might be right for your business if you have one or more of the following:

• High electricity prices (more than $0.07 or $0.08 per kWh)
• Long operating hours of 3,000 – 6,000 per year or more
• Significant heating, water heating or process loads
• A central heating and cooling system already in place
• Spark spread between self generation and utility purchase of approximately $0.03 to $0.04 per kWh
• An average electric load-to-peak load ratio greater than 0.7

Program Funding
For a business to be eligible for funding, CHP technologies must achieve a total fuel efficiency of 60 to 70 percent or higher. This efficiency must be demonstrated during standard operations that will vary according to the type of facility where CHP is utilized. Incentive awards include the following levels up to a maximum of 50 percent of the installed cost of any project:

Minimum Fuel Efficiency	Incentive
70 Percent	$500 per kW
65 Percent	$450 per kW
60 Percent	$400 per kW

Project Evaluation and Selection
Southwest Gas and its Key Account Management Department will review and select qualified projects on a first-come, first-served basis. Project applications not initially selected will remain active for three years, and will be considered prior to other projects submitted in later application cycles. The incentive program will continue until available funds are depleted. (Funding not used in one year cannot be carried over to the next.)

Application Dates

	Opening Date for Applications	Deadline for Applications
Cycle 1	April 15, 2008	June 30, 2008
Cycle 2	August 2, 2008	October 31, 2008

Application Requirements
This program is limited to industrial or commercial customers in Arizona. Interested customers are required to complete a program application form and include the following documentation: Twelve months of gas and electric utility bills and a feasibility or preliminary economic study of the proposed project.

For an application, click here.

Note: Submitting an application, however, does not guarantee funding. Projects will be evaluated on their projected fuel efficiency, as well as emission and water savings. An Arizona registered professional engineer (PE) study will be required prior to the final award.

Contact Southwest Gas Key Account Management at 602-395-4058 for more information.