Chiller plant owners and designers face new challenges in a deregulated electric environment. Though predicted results from retail wheeling and real-time pricing (RTP) may be appealing on the surface, utilities spearheading the RTP rate structure have already issued on-peak electric prices as high as $3.50/kWh (kilowatt hour). Selecting proper chillers now requires more than simply determining lowest operating costs, simple payback, or even lowest life-cycle cost. This article outlines the benefits from combining electric and alternative-drive chillers (hybrid system) to effectively and efficiently combat high electric prices.