CPUC Decision Creates New Incentive Program for In-Conduit Hydro

In a move that could provide up to $5 million in incentives for water agencies, the California Public Utilities Commission has modified its Self-Generation Incentive Program to include in-conduit hydro projects.

The decision provides for an up-front incentive of $1.25 per watt of capacity for in-conduit hydro, the highest level of incentive for renewable and waste heat capture projects.

ACWA energy consultant Lon House noted that if all known in-conduit sites in California take advantage of this decision, this new incentive is worth over $5 million to California water agencies.

The decision marks a big win for ACWA and a reversal of CPUC staff’s initial position to exclude in-hydro conduit from the incentive program. Testimony by House on ACWA’s behalf helped convince the commission to extend eligibility to in-conduit hydro, also known as pressure reducing turbines (PRTs).

The commission’s Self-Generation Incentive Program (SGIP) is aimed at promoting technologies that reduce greenhouse gas emissions (GHGs) consistent with AB 32 of 2006.  

In the decision, the CPUC notes that promoting in-conduit hydro is consistent with the goals of the program.

“We agree that PRTs – which do not require fuel – do reduce GHGs and can also reduce peak load. Because they require little or no additional fuel for generation, waste heat to power units are also considered renewable for purposes of determining the appropriate SGIP levels,” the decision states. “Including PRT and waste heat to power technologies in the SGIP will help promote these technologies as viable options for clean (distributed generation) and achieve the market transformation goal.”

The CPUC decision and House's testimony can be found below.