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CEIC-03-17

"Guidance for Drafting State Legislation to Facilitate theGrowth of Independent Electric Power Micro-Grids"

Douglas King and M. Granger Morgan

Abstract:
A variety of small-scale electric generation technologies are now available. Many of these can operate as combined heat and electric power (CHP) systems that achieve much higher overall end-use energy efficiencies than conventional systems. In addition, solid state power electronics and advanced computer control technology make it possible to condition and control the local use of electric power, and interconnections to the distribution system, in ways that had previously not been possible.

We believe that new legislation that would permit the development of independent micro-grids should be passed in states where such systems are not now allowed, or where present laws and regulation discourage their development. It is our belief that such enabling legislation could unleash a wave of technological and business innovations similar to what occurred in telecommunications after the 1968 Carterphone Decision allowed customers to attach non-Bell devices such as phones, answering machines, fax machines, and modems to the public telephone system. 

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