Government Energy Policy, Business and Technology

Groups challenge FERC's PURPA rule, accuse commission of 'actively discouraging' small power facilities

Utility Dive: PURPA was passed in 1978 in an effort to encourage domestic energy production and reduce overall energy demand. The law in part calls for FERC to implement regulations that encourage the development of QFs, often small power generators, but the Electric Power Supply Association, SEIA and others argue FERC's latest ruling defies the federal law by granting states the ability to eliminate provisions that have been proven to help encourage QF deployment and development.

"In revoking the long-standing regulations that provide the Qualifying Facility with the right to elect to be paid a long-term energy rate in a contract for long-term energy delivery the Commission is actively discouraging the development of Qualifying Facilities in contravention of the statutory direction to encourage the development of such facilities," SEIA wrote in its request for rehearing.

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