PURPA Rules: New FERC Revisions Regarding QF Power Sales, New Requirements for Utilities, QF Certification, State Authority, and More

Description

On July 16, 2020, FERC adopted significant revisions to its PURPA regulations that will impact qualifying small power production facilities and cogeneration facilities (QFs).

PURPA, as implemented through FERC regulations, requires electric utilities to interconnect with QFs, purchase electricity from certain QFs, and provide backup energy to QFs at just, reasonable, and not unduly discriminatory rates and terms. PURPA also provides exemptions for certain QFs from numerous provisions of the Federal Power Act, the Public Utility Holding Company Act of 2005, and certain state laws and regulations.

FERC’s new PURPA regulations address: (1) avoided cost determinations for QF rates; (2) treatment of QF facilities located at the same site through a restructuring of the "one-mile rule;" (3) mandatory purchase obligations from QFs; (4) new contracts and legally enforceable obligations (LEOs); and (5) QF certification, including self-certification and self-recertification. These sweeping revisions have caused both controversy and confusion. Energy counsel must understand the application of these rules and identify key issues for certain facilities, developers, lenders, and operators.

Listen as our panel discusses key aspects of the revised rules, new requirements for electric utilities, changes to state authority to set QF rates, the “one-mile rule,” and QF certification, and other key issues.