Combined Heat and Power Application
Baltimore Gas and Electric Company (BGE) offers incentives for qualified
Combined Heat and Power (CHP) projects through the BGE Smart Energy
Savers Program® to help commercial, industrial, government,
institutional and non-profit electric service customers offset the upfront
costs for energy-efficient improvements. Combined Heat and Power(CHP) is a form of distributed generation which involves thesimultaneous production of electricity and heat. CHP Systems typicallyoperate at a high efficiency, lower energy costs and are connected inparallel or independent of the electric grid.

Application and Instructions
Eligible Participants
Incentives are available to non-residential, commercial, industrial,
government, institutional and non-profit electric service customers within
the BGE service territory that fall under rate schedules G, GS, GL, P or T.

Eligible Projects
Eligible CHP projects can be driven by either a reciprocating engine or agas turbine and must operate at a minimum of 65% efficiency (Higher
Heating Value) on an annual basis. Eligible CHP systems must be sized tomeet all or a portion of the customer’s on-site load, not to exceed 100%of most recent historical annual comsumption or peak demand.
Incentives are not available for CHP systems that serve off-site
customers, exports to the grid, or are not located on the customer’s
property. Fuel cell with heat recovery driven CHP projects will beconsidered on a case-by-case basis.

3. Production Incentive: 60% of total incentive after receiving 12
contiguous months of actual kWh generation received within 24 monthsof project installation, subsequent to review of metering data. Payment
will be prorated, based on kWh actual generation and will be capped at
60% of total incentive. For example, if the actual kWh generation is 80%
of estimated, the Production Incentive will be decreased by 20%.
Project Caps: Design and Installation incentives are capped at $1.25
million and Production incentives are capped at $1.25 million. A limit of
one project per customer site every 3 years applies.

Project Timelines
Projects must be pre-approved and be completed within eighteen (18)months of the pre-approval date. BGE may disqualify any application
without liability if the Customer has (a) not installed the approved projectand (b) has not applied to BGE for a project extension within the eighteenmonth project installation stage. Extensions can be granted if significant
progress can be clearly demonstrated and/or identified corrective actions
have been implemented.

Participation Instructions
Step 1
Verify that your project meets the eligibility requirements specified in
the CHP Program Manual. Visit the program website
BGESmartEnergy.com/CHP and contact us at 410.290.1202 before
proceeding.
Step 2Complete CHP Project submissions are comprised of:
1. CHP Application

Eligible projects may include retrofits, new construction and majorrenovations. All projects must be pre-approved by December 31, 2020.

2. CHP Feasibility Study
3. The Total Resource Cost (TRC) calculator

Program and Incentives Details
Details of the program and technical requirements are subject to change
without prior notice. You may go to BGESmartEnergy.com/CHP to get
the most current program information, or you may call 410.290.1202.
All qualified projects are eligible to receive the following:
Incentives under the program are calculated by the system capacity andthree payments are comprised of a Design Incentive, Commissioning
Incentive, and a Production Incentive.

Go to BGESmartEnergy.com/CHP to download and complete the CHP
Application and TRC Calculator and view a sample outline of the
Feasibility Study in the CHP Program Manual. Ensure all required
information is addressed in your Feasibility Study.
Complete CHP project submissions may be submitted by U.S. mail, fax,
or email.
Mail:

ICF International
7125 Thomas Edison Drive, Suite 100
Columbia, MD 21046

Incentive Amount: $1,200/kW up to and including 1 MW; $900/kW over
1 MW. The first 1MW of any system would be incentivized at $1,200/kW.
1. Design Incentive: 10% of total incentive at project approval,
subsequent to signed commitment letter and acceptance of minimum
requirements document. Along with the following documentation:
written confirmation verifying adequate natural gas capacity andpressures at site (or executed agreement to upgrade gas service capacity
as needed), schedule and copies of required permits and certificates, andsigned Interconnection Service Agreement.
2. Commissioning Incentive: 30% of total incentive after installation iscomplete, subsequent to commissioning of the CHP system and BGE
inspection.

BGE Smart Energy Savers Program®

Fax:

410.290.0861

Email: Business@BGESmartEnergy.com
Step 3
All project submissions will be reviewed for eligibility and completeness.
Completed project submissions will be reviewed in the order received.
Applicants who submit incomplete project submissions will be notified
of deficiencies. BGE and the Customer will develop a Minimum
Requirements Document (MRD) specifying project-specific incentive
offer conditions such as milestones, measurement & verification,
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BGE CHP APPLICATIONBGE-CI-102018

interconnection and permitting plans and operational requirements
along with any additional required documentation. The Customer will be
required to sign a Customer Pre-Approval Letter from BGE and provide
written verification of natural gas capacity and pressure at the projectsite (if applicable). Upon receipt of the signed letter, BGE will disburse
the Design Incentive.

Step 5
Upon design, construction and commissioning of the CHP project, BGE
will conduct an inspection. Unless there are significant issues, BGE will
disburse the Installation Incentive or revise the incentive, as applicable.
Step 6
The performance period may last up to 24 months from the date of final
system inspection by BGE. Applicants must adhere to the agreed upon
M&V plan as stated in the MRD. Unless there are significant issues, BGE
will disburse the Production Incentive based on review of the contiguous
12-months of performance data submitted.

Step 4The Customer will be required to submit monthly progress reports
detailing key project activities and milestones for each month up until
the final inspection of the project by BGE. Monthly progress reports are
due on the 10th day of the month and must cover the entire previous
month.

QuestionsIf you have questions about the program, call 410.290.1202, email
Business@BGESmartEnergy.com or visit BGESmartEnergy.com/CHP.

I. CUSTOMER INFORMATION
Application Date ______________________________________

Expected Operational Date______________________________________________

Company Name ______________________________________BGE Electric Account # _________________________________________________

Street Address (of the facility) ____________________________________________________________________________________________________
City ______________________________________________________________ State ________________ Zip _________________________________
Mailing Address (if different) _____________________________________________________________________________________________________
City ______________________________________________________________ State ________________ Zip _________________________________
Contact Person _______________________________________

Title ________________________________________________________________

Telephone No. ____________________________ EmailBusiness Type (if applicable)
 Minority-Owned Business Woman-Owned Business Veteran-Owned Business

Sector Type (select one)
Education
Government

HealthcareHospitality

Nonprofit

RetailOther

Property Management

Industrial

Building Type (select one)
 Office Retail School University

 Religious Facility

 Grocery Lodging Industrial

 Warehouse Health Facility

 Multifamily

 Restaurant Other

Project Type (select one)
 New Building Addition/Renovation

 Change of Building Use

 Retrofit/Equipment Replacement New Equipment

 Existing Facility  Other______________________
Square footage covered by application: ___________

II. CONTRACTOR/VENDOR INFORMATION
Company Name _______________________________________________________________________________________________________________
Street Address ________________________________________________________________________________________________________________
City _________________________________________________ StateZip _______________________

Mailing Address (if different) _____________________________________________________________________________________________________
City _________________________________________________ State
Contact Person _______________________________________
Telephone No.

Zip _______________________

Title ________________________________________________________________

Email

Certified Business Type (if applicable)  Minority-Owned Business Woman-Owned Business Veteran-Owned Business

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BGE CHP APPLICATIONBGE-CI-102018

II. PAYMENT INFORMATION
Payment to:  Customer

 Contractor

Name __________________________________________________________________________________

Title _____________________________

Customer Signature (if payment to Contractor) ________________________________________________

Date ______________________________

III. ADMINISTRATIVE USE ONLY
Date Received ____________________________ Project #Program Rep. ________________________

Pre-approved Date _________________________ Program Manager

Pre-approval Incentive $ _______________

Final Approval Date ________________________ Program Manager

Final Incentive $ ______________________

IV. PROJECT SUMMARY
Use the section below to summarize the project.
Project Overview : Include site details, primary business function, hours of operation (weekday and weekend)

Baseline Summary : Include actual or estimated electricity consumption, gas use, heating and cooling loads – minimum, average and maximum, existing unit price ofelectricity ($/kWh) and unit price of gas($/MMBtu)

Proposed System Summary : Include CHP technology details – prime-mover (engine or turbine), capacity, manufacturer and model number, waste heat utilization source(heating and/or cooling), CHP operating schedule

Proposed Project Financials : Include Existing Unit Electricity and Gas Costs, Estimated Annual $ savings, Anticipated Cost of the Project and Anticipated Incentive

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CHP Efficiency Calculation (HHV Basis)
CHP Efficiency (%) =𝐴𝑛𝑛𝑢𝑎𝑙 𝐸𝑙𝑒𝑐𝑡𝑟𝑖𝑐𝑖𝑡𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 (𝐵𝑡𝑢) + 𝐴𝑛𝑛𝑢𝑎𝑙 𝑊𝑎𝑠𝑡𝑒 𝐻𝑒𝑎𝑡 𝐶𝑎𝑝𝑡𝑢𝑟𝑒𝑑 (𝐵𝑡𝑢)
𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝐻𝑃 𝐹𝑢𝑒𝑙 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 (𝐵𝑡𝑢)

V. PROPOSAL CHECKLIST
Please include the following items:
 Complete & Signed CHP Application
 CHP Feasibility Study Completed TRC Calculator Spreadsheet

VI. CUSTOMER ACKNOWLEDGMENT
By signing below, I hereby certify that all statements made on this application are correct to the best of my knowledge and that I have read and agree tothe Terms & Conditions on page 5.
Authorized Representative (please print)_______________________________________________________

Title ______________________________

Signature ________________________________________________________________________________

Date ______________________________

Note: Upon completion of project, BGE customer of record must sign and return the written pre-approval letter and provide paid invoices for all energy
efficiency measures.

For more information about the program, go to BGESmartEnergy.com/CHP or call 410.290.1202.
Mail to: BGE Smart Energy Savers Program®, c/o ICF International, 7125 Thomas Edison Drive, Suite 100, Columbia, MD 21046.

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BGE CHP APPLICATIONBGE-CI-102018

VII. TERMS & CONDITIONS
1. Eligibility: BGE incentives are available to industrial, commercial, government andinstitutional electric service Customers for the purchase and installation of qualifying
energy-savings measures in the BGE service territory. BGE reserves the right to deny
any application that may result in BGE exceeding its program budget. Incentives areoffered on a first- come, first-served basis and are subject to project and Customer
eligibility, availability of funds and distribution of incentives across BGE Customer base.
Total incentives for are capped at $2, 500,000.

12. Application Does Not Entitle Customer to Participate: The program described in thisapplication may be altered, suspended or canceled by BGE at any time without priornotice. Under such circumstances, the Customer is not entitled to any program
benefits in excess of those approved prior to such action by BGE. Submission of acompleted application does not entitle the Customer to program participation.
Entitlement to program participation can only occur after BGE has signed a copy of theapplication and granted pre-approval if required by BGE.

2. Approval and Verification: Pre-approval is required for all CHP projects. No project may 13. Removal of Equipment: The Customer agrees, as a condition of participation in the
be contracted for, purchased or installed prior to the date of BGE’s pre-approval. BGE
program, to remove and dispose of the equipment being replaced by project inreserves the right to verify sales transactions and to have reasonable access to youraccordance with all legal requirements. The Customer agrees to not install any of thisfacility to inspect and monitor the project installed under this initiative, prior to issuingequipment in the BGE service territory.
incentives. In particular, BGE is not obligated to pre-approve any application for an
14. Evaluation Follow-up Visits: The Customer agrees, for a period of three (3) years after
incentive that may result in BGE exceeding its program budget. BGE reserves the rightthe final incentive payment, to allow BGE or its assigned contractor to conduct on-site
to exclude any proposed energy saving measures based on engineering analysis.
inspections to verify that the qualified measures are installed and to conduct other3. Compliance: All projects must comply with all federal, state and local codes. All equipment
measurement and verification activities to assess the amount of energy savings
must be new. Used or rebuilt equipment is not eligible for incentives. Existing equipment
achieved. Such activities may require the installation of energy monitoring equipment.
must be removed and disposed of in a proper and legal manner. BGE encourages that
equipment is disposed of and/or recycled in an environmentally friendly manner. Existing 15. Changes to the Program: BGE may change the program and the Terms & Conditions at
any time without notice. Pre-approved applications, however, will be processed toequipment must meet specification requirements and be purchased and operating priorcompletion under the Terms & Conditions in effect at the time of the pre-approval by
to submitting the application form. Only one incentive will be granted for each project.
BGE.
Incentives granted to contractors, distributors or other market providers cannot also be
claimed by end-use Customers.
4. Payment: BGE will authorize payment upon the application’s review and approval. The
incentive checks will be mailed 6-8 weeks after each of the slated phases. Incomplete
applications will be returned. The Customer may assign the incentive payment to aqualified contractor (if allowed). The benefits/payments conferred upon the Customer
or their designated contractor through participation in this program may be taxable by
the federal, state and local government. The Customer or its designated contractor is
responsible for declaring and paying all such taxes.
5. Inspection: BGE staff or its representatives may conduct inspections of the facility tosurvey the installed projects.
6. Publicity: BGE reserves the right to publicize your participation in this program.
7. BGE/Program Logo: Customers or market providers may not use the BGE or Program
name or logo in any marketing, advertising or promotional materials without BGE’sprior written permission.
8.

Disclaimers: BGE does not endorse any particular market provider, manufacturer,
product, labor or system design by offering this program; will not be responsible forany tax liability imposed on a Customer as a result of the payment of incentives; does
not expressly or implicitly warrant the performance of installed equipment orcontractor’s quality of work (contact your contractor for detailed warranties); is not
responsible for proper and legal disposal/recycling of any waste generated as a resultof this project; and is not liable for any damage caused by the installation of theequipment or for any damage caused by the malfunction of the installed equipment.

16. No Warranties: BGE does not endorse, guarantee or warrant any particular
manufacturer or product, and BGE provides no warranties, expressed or implied, forany products or services. The Customer’s reliance on warranties is limited to any
warranties that may arise from, or be provided by contractors, vendors, etc. The
Customer acknowledges that neither BGE nor any of its consultants are responsible
for assuring the design, engineering and construction of the Facility, or that the
installation of the energy-savings measures is proper or complies with any particularlaws (including patent laws), codes or industry standards. BGE DOES NOT MAKE ANY
REPRESENTATIONS OF ANY KIND REGARDING THE RESULTS TO BE ACHIEVED BY THE
ENERGY-SAVINGS MEASURES OR THE ADEQUACY OR SAFETY OF SUCH MEASURES,INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND FITNESSFOR A PARTICULAR PURPOSE.
17. Limitation of Liability: BGE’s sole liability is limited to paying the properly qualified
incentives specified herein. Neither BGE nor any of its affiliates shall be liable to theCustomer or any other party for any indirect, consequential or incidental damages,
regardless of the theory of recovery, caused by or arising from any activities
associated with this program.
18. Vendor Selection: BGE acknowledges that the Customer may select any vendor orcontractor to perform the work contemplated by this Application, even after the
Application is submitted for pre-approval by BGE. Notwithstanding the foregoing, theCustomer acknowledges that BGE has the right to prohibit specific vendors orcontractors from program participation for any reason or no reason.

19. Obligations Between the Parties: Customer acknowledges that any contractor selected by
the Customer is not an agent, contractor or subcontractor of BGE. BGE shall have no
9. Verification: Any Customer receiving an incentive check may be contacted by anobligation to maintain, remove or perform any work whatsoever on the energy-savings
evaluator to verify service/equipment installation or be asked to complete a written,
measures installed. BGE shall have no liability for contractor’s failure to perform, fororal or electronic Customer survey.
failure of the energy-savings measures to function, for any damage to the Customer’s
premises caused by the contractor or for any and all damages to property or injuries to
10. Forfeiture of Incentives Paid to Customer: The incentives paid to the customer prior topersons caused by the energy-savings measures.
final inspection shall be repaid by the customer to BGE under the following conditions:A.
The final design is never completed – The Design Incentive is paid after BGE
20. Energy Benefits: BGE is entitled to 100% of the energy benefits associated with theissues the Pre-Approval Letter. After this Letter is issued, BGE and the customer
energy-savings measures, excluding the value of energy cost savings realized by theshall agree on a date by which the customer must deliver to BGE the final design
Customer, but including all rights to all associated PJM Energy, Capacity and Reserves
for the CHP system. If the customer fails to provide BGE with a complete design
Products, and the Customer agrees to provide BGE with such further documentationby the agreed to date, the customer must immediately refund the Design
as BGE may request to confirm its ownership of such benefits and products.
Incentive to BGE. The project may be re-submitted at a later date at thediscretion of BGE. Customers who are allowed to resubmit a project are still
21. Customer’s Certification: Customer certifies that he/she has purchased and installedsubject to the same requirements for initial project submittals.
the equipment listed above at the defined location. Customer agrees that all
information is true and that he/she has conformed to all program and equipment
B.
The Commissioning of the CHP system is not completed properly – If the system
requirements listed. Customer has verified that the units listed above have been
fails to become operational the customer will repay the Design Incentive to BGE.
installed correctly. Customer or Customer’s representative has been instructed on
how to operate and maintain this equipment and has received all necessary operation
11. Incentive Repayment: Any CHP project that exhibits significant delays in achieving
and maintenance manuals.
project milestones as stated in the MRD may be disqualified. The applicant will needto return design incentives and forfeit any incentive claims for the project. Projects
that are commissioned, but do not achieve an annual efficiency of 65% (HHV) may bedeemed ineligible to receive performance payments.

EmPOWER Maryland programs are funded by a charge on your energy bill. EmPOWER programs can help you reduce your energy
consumption and save you money. To learn more about EmPOWER and how you can participate, go to BGESmartEnergy.com.
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