CHP Projects for Hospitals 201


My prior WEEC 2018 presentation addressed hospitals contracting with third parties to install CHP equipment owned by that third-party to sell electricity and thermal energy to the hospital.  This presentation will address legal and contractual considerations involved when the hospital contracts directly for purchase and installation of an on-site CHP project to be operated by the hospital. It will explore achieving the hospital’s objectives and minimizing risks during the contracting process with respect to each of the types of contracts.  Hospitals involved in this area need to understand the legal framework and how to successfully negotiate contractual provisions. This presentation, from the hospital’s perspective, will also be of interest to engineers, consultants, equipment suppliers and others contracting with hospitals.

This presentation will include examples of hospital on-site CHP projects, and, in particular, will address the interrelationship between legal, technical and practical considerations. The topics addressed will include:

  • Negotiating key elements of contracts between the hospital and equipment suppliers, construction contractors, metering services, remote or on-site operators, maintenance and others
  • Contracting for engineering and consulting services
  • Fuel supply contracts
  • Accessing incentive programs
  • Regulatory and local construction code considerations


Peter V.K. Funk Jr.


Funk & Zeifer LLP

Peter Funk is a partner in the law firm of Funk & Zeifer LLP located in New York City.  He has an extensive background in unregulated and regulated electricity and gas.  His renewable, alternative and conservation energy practice includes CHP, solar power, landfill gas or animal waste bio-methane to power\gas off-take, energy efficiency, conservation projects, demand site management and energy-related financings.  He has been involved with many on-site CHP and solar generation projects. 

He advises private and public clients with regard to energy matters. His private energy sector representations have included private hospitals, energy services companies, developers and end-users together with gas and electric utilities.   His public entity representations include public housing authorities, municipalities, school districts, public hospitals and others regarding energy conservation, management and on-site generation projects together with energy procurement.  In addition to the above, his experience includes interconnection and ISO matters, transmission and distribution, data centers, representing intervenors in utility rate case and customers in disputes with utilities.

A member of the American and New York State bar associations and the Association of the Bar of the City of New York, he is a graduate of Boston University School of Law.

He often writes and speaks on topics in the energy and sustainability sectors.  He is a member of the Energy Committee of the NYC Bar, the New York State Bar Committee on Public Utility Law and an Associate Member of AEE, and has been a member of the Technical Advisory Board of Mission Critical Magazine.

He was president of the multi-family cooperative apartment building that became the first real time price electricity customer of Con Ed as a NYSERDA demonstration project.  That project also included participation in an emergency electric curtailment program with NYISO and an energy efficiency retrofit of the building.  He has received a “Green Team” award from the New York Association of Realty Managers.