Why is PGE offering Dispatchable Standby Generation (DSG)?
The tight supply of electricity and resulting high prices have created new business opportunities for PGE customers who can simultaneously use power, while making more power available in PGE’s territory.
DSG allows PGE to provide new power capacity resources for all its customers. By adding many generators to the electric distribution system and turning them on at peak demand hours, PGE and DSG participants are helping keep the price of power down and the supply up with an innovative business relationship.
How does my business benefit?
DSG improves a participant’s bottom line because PGE:
- Covers most operating and maintenance costs of the standby generator
- Contributes to the customer’s standby generator system installation
- Typically pays for fuel consumed by the standby generator system
What happens if we need power at the same time PGE is using the DSG system?
DSG is set up so your facility’s loads are automatically served first and then any excess power you generate flows into the PGE system. For example, if your building load is 1,000 kilowatts, and the generator is putting out 1,500 kilowatts, only 500 kilowatts are serving other PGE customers.
Will DSG put more wear and tear on my company’s generator?
DSG will probably extend the life of your backup/emergency power system. Monthly, PGE will start the generators and test them at high load. More frequent high load runs are better for the diesel engines. The tests also save the costs of load bank testing and help assure your organization that the equipment will start up and function properly in a power outage.
Will PGE help pay for new generators? Does PGE help if I’m installing new generators?
The generators themselves are not funded. However, whether you are building a new facility with backup power, adding generators or upgrading your switchgear, PGE will help fund the installation, including funding for the latest generator control and paralleling switchgear technology. Many high-tech companies are already using this equipment for seamless transition from generators to the power grid.
How is the maintenance provider selected?
Your facility’s staff and PGE will jointly decide on the most qualified maintenance provider. This may be your existing provider, your own staff or a new provider that best meets your needs. Our agreement with maintenance providers will include performance reviews and if they are not performing well, we can agree to change providers.
Who is responsible for maintenance and repair?
This is another win-win aspect of DSG for participating businesses, institutions and PGE. Routine maintenance to DSG-related equipment is paid by PGE. We estimate that this may easily save $25,000 to $100,000 over a five-year period, depending upon the number of generators you have.
PGE has created DSG with the highest standards. Should your equipment fail to function as required for your emergency/backup use, the maintenance provider selected by you and PGE will begin diagnosing the problem within four hours of notification.
Who pays for fuel?
PGE typically pays for fuel consumed by the standby generator.
Can I still participate if I choose to buy power from an independent supplier?
Under Oregon law, you can choose to purchase your power from an independent provider. If you make this choice, you can still take advantage of the DSG opportunity. You, PGE and your independent supplier would negotiate an agreement, which would provide accurate billing and properly account for the power used by your facility, even when the generators are operating.
Who is responsible for regulatory compliance?
You are responsible for obtaining your own regulatory compliance and any necessary environmental permits. However, we will reimburse you for the cost of any permits specifically required to participate in DSG.
Under what circumstances would my organization have to reimburse PGE for its investment?
PGE is providing a significant investment to upgrade your standby generator system, and we count on your generation to maintain an efficient power system and reduce costs. If you cancel the agreement without cause or without proper notice, most of the equipment would typically remain with you and you would be responsible for reimbursing PGE for the value of that equipment, based on a reimbursement schedule in the DSG agreement.
If PGE cancels the agreement, we will remove any PGE equipment and leave your facility in such condition as will enable you to operate the generators for your own backup use. Under these circumstances, no equipment reimbursement would be required.
In what circumstances can a business cancel the DSG agreement?
In the unlikely event that PGE fails to maintain or repair the equipment as required in the agreement, you may cancel the contract before its normal expiration date. As mentioned above, the maintenance service provider is required to begin diagnosing a problem within four hours. If a problem cannot be fixed within a reasonable amount of time, you would have the option to terminate the agreement.
What happens if the actual project cost is greater than PGE’s projections because of unforeseen conditions?
In a retrofit installation or for PGE-owned equipment, PGE will be responsible for all cost over-runs related to items installed under the Dispatchable Generation Agreement. With a new facility or new generator plant, where you would have primary responsibility, we would negotiate an appropriate cost-sharing solution.
How can I learn more about PGE’s Dispatchable Standby Generation?
Please contact your PGE representative or call our 24/7 phone number: 503-464-7893.