On Sept. 19, the Federal Energy Regulatory Commission issued a notice of proposed rulemaking in FERC Docket Nos. RM-19-15-000 and AD16-16-000,1 recommending substantial modifications to its regulations concerning the Public Utility Regulatory Policies Act of 1978, or PURPA.2

Authors: Colette D. Honorable Debra Ann Palmer

The NOPR proposes extensive changes to critical components of the PURPA framework, including the qualifying facility, or QF, rate calculation, the one-mile rule and the QF purchase mandate. If adopted, those changes could significantly affect the ability of QFs to require electric utilities to purchase their output — and the price that utilities will have pay for that output.

In general, the proposals in the NOPR appear to be designed to provide QFs with market-clearing prices for their output, rather than avoided-cost rates, and to modify QF purchase requirements.

To read the full article, please download the PDF below. This article was first published on Law360 on 8 October 2019.

  1. Qualifying Facility Rates and Requirements, Implementation Issues Under the Public Utility Regulatory Policies Act of 1978, 168 FERC paragraph 61,184 (2019) (NOPR).
  2. Pub. L. No. 95-617, 92 Stat. 3117 (1978) (codified as amended at 16 U.S.C. Section 824a-3 (2012)).