For the House Energy and Commerce Energy and Power Subcommittee hearing:

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at its Grand Isle Offshore Platform in Louisiana in 2002 to provide reliable onsite power to the platform. BP chose a microturbine for its high reliability, small footprint, low maintenance, high efficiency and low emissions. • Paul Tonko (D-New York) – Proctors renovated the 2,700 seat theater in downtown Schenectady in 2007. Proctor's Theater had been heated with a boiler plant and cooled with various distributed cooling systems. A new central boiler and chiller plant was designed for the renovated facility. The electric capacity of the CHP plant is 240 kW (Four 60 kW Capstone microturbines) and supplies the base electric, heating and cooling load all year around, minimizing the standby charges (the CHP plant capacity represents 13.8% of the peak electric demand). The CHP facility is integrated with a new central boiler and chiller plant. The project provides a peak reduction of 240 kW, and resulted in more than $500,000 in annual net energy savings for the host site facility. Capstone has benefitted from ongoing DOE R&D funding. From winning an initial competition to develop high efficiency CHP in the early 2000s, we have continued to value our joint partnership with DOE and are currently working with them on the development of a 370 kW product that aims to achieve 42% electrical efficiency. Currently, our microturbines provide the most energy efficient gas turbines under 4.5 MW. We are also undertaking R&D to develop systems that can run on opportunity fuels such as syngas, solar power and hydrogen. Despite all of these positive developments, our company and the CHP industry continue to encounter numerous barriers towards greater deployment. The barriers we face in deploying greater amounts of CHP are legal, regulatory and economic. We would like to see greater top-level government leadership on specific CHP issues in the context of energy policy. For example, while the Executive Order to increase CHP is helpful in highlighting the value of the technology, active leadership in the form of federal procurement of CHP to meet federal energy efficiency goals would more clearly demonstrate support for achieving such targets. According to the Alliance to Save Energy, these types of efficiency improvements in 8

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