In a teleseminar held by the National Regulatory Research Institute entitled “The Prospects for Combined Heat and Power (CHP) and the Role of State Utility Commissions,” Rich Sedano provided an overview of standby rates and performance regulation, along with recommendations and best practices for the allocation of utility costs, rate design, and customer options. In a time of transition, where customer generation has seen a dramatic increase, well-crafted standby rates are crucial for sending the right price signals and charging CHP customers for the grid services they actually receive. Properly implemented, standby rates can unlock private investment in these cleaner, more efficient resources and reinforce the emergence of customers as a power system resource by enhancing their flexibility. Mr. Sedano’s presentation is based on the paper “Standby Rates for Combined Heat and Power Systems.”