A new study of seven cities done by the Interstate Natural GasAssociation of America (INGAA) Foundation found that Chicago, andAustin, TX, reflected “desirable attributes of a metropolitan area”that could likely benefit from a high deployment of distributedgeneration.

The “Urban Distributed Generation Profile” released yesterdayanalyzes cities on the need for new generating capacity;constrained power delivery system; environmental and air qualityrestrictions; electric rate structures favorable to distributedgeneration; availability of natural gas; and regulatory incentives.

The foundation said Chicago and Austin were chosen because oftheir “unique environmental issues and constraints that offeropportunities to integrate distributed generation into urbanplanning strategies.” Regulators and policymakers in both citiesalso seemed to understand the benefits of distributed generation,the group added.

Some utilities see distributed energy as a threat that they willhave to contend with in the near future, but the INGAA foundationsaid it is becoming a part of the business strategies of someutilities and energy services. “It [distributed generation] createsa competitor within the utility service territory,” said INGAAFoundation spokesperson Mary O’Driscoll.

“However, a lot of forward-looking utilities are looking atdistributed generation as an alternative that they would want tosupply. It’s not necessarily that distributed generation would beother competitors coming in and competing with these utilities, theutilities can come in and do it on their own,” she added.

Albuquerque, NM, Las Vegas, NV, San Diego, Detroit and New Yorkwere also studied in the profile, but were found to have lessfavorable regulatory and business climates for distributedgeneration. Copies of the “Urban Distributed Generation Profile”can be purchased for $75 by contacting INGAA at (202) 216-5900.

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