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Policy Issues  Public Policy Issues  Although a great deal of
progress has been made, significant barriers continue to exist
that hinder the implementation of CHP in New York State.
Establishing Interconnection Agreements with the Utility Grid
Many CHP customers are still dependent on grid power during
times of peak demand because:    • CHP electrical generation
systems are generally designed to meet a customer’s baseload
needs and/or   • Many CHP systems are sized to meet the site’s
thermal load.  The sizing of a site’s generating equipment to
meet a spike peak demand requirement typically would not be
economically viable, as it would result in expensive generating
capacity remaining underutilized for the majority of the time.
Therefore, many CHP system owners elect to remain connected to
the grid.  Interconnection with the local utility continues to
be an obstacle that must be overcome.  It involves a number of
technical, regulatory, and busi