The California Energy Crisis and Cogeneration Investment Opportunities for Office Landlords By

For the past eight months, California has been beset by an energy crisis. An inadequate supply of electricity has not been able to keep up with the growing demand. Vital transmission lines are operating at or near capacity. The installation of cogeneration systems into office buildings can play an important role in the overall solution. Cogeneration is a form of on-site generation that can provide electricity to office landlords and tenants that is less costly and more reliable than that provided by the utilities. There are several ways that office cogeneration systems can ease the pressure on California's electric generation and transmission infrastructure. First, office buildings consume 26 % of all electricity nationwide. They place an equally great demand on California's generating capacity. With widespread application, the siting of cogeneration systems in office buildings can reduce the demand placed on California's centralized power plants (CPPs). Reducing the demand for electricity that is centrally generated and delivered via transmission lines reduces the risk of blackouts and the cost of wholesale and retail electricity. Second, because transmission lines are already operating at or near their capacity, it will be problematic t