An Introduction to PURPA
Course 202
This course is intended for energy lawyers and other professionals new to the electric industry. The course provides an introduction to the Public Utility Regulatory Policies Act of 1978, as amended (PURPA) and how it has been implemented by the Federal Energy Regulatory Commission (FERC) and state public service commissions (PSCs). Our faculty will provide an overview of the enactment of PURPA and its key provisions; describe the obligations imposed on electric utilities under PURPA; explain how qualifying facility (QF) status is obtained, what QF status means, and why QF status is necessary and beneficial; address the determination of “avoided cost” rates paid to QFs; cover waivers and the termination of the must-purchase obligation under PURPA; address the PURPA enforcement regime; cover the PURPA ratemaking standards that states must consider; and wrap up with a discussion of recent developments and trends under PURPA.
Content
PURPA OVERVIEW
- Historical context of enactment of PURPA in 1978
- Outline of key provisions of statute
- Initial implementation – Order Nos. 69 and 70
- EPAct 2005 and Order Nos. 671 and 688 (overview)
- Order No. 872 (overview)
QF STATUS
A. Why it’s needed
1. Interconnection, sale of power
2. Regulatory exemptions (PUHCA, rate regulation, state regulation, etc.)
B. Criteria
1. Small power production – size, fuel source, “one mile” rule; hydro facilities
2. Cogeneration – operating and efficiency criteria, “fundamental use”
3. Ownership Rule
4. Certification – Form No. 556, filing obligation (initial and ongoing), revocation
C. Enforcement Issues (late filings, refund remedy, etc.)
ELECTRIC UTILITY OBLIGATIONS
A. What is an “Electric Utility”
B. Avoided cost data
C. Interconnection
D. Purchase obligation
1. Legally enforceable obligations
2. Section 210(m) (generally)
E. Sale Obligation
A. What is an “Electric Utility”
B. Avoided cost data
C. Interconnection
D. Purchase obligation
1. Legally enforceable obligations
2. Section 210(m) (generally)
E. Sale Obligation
AVOIDED COST RATES
A. Early Implementation
1. Avoided Costs Defined
2. How determined
B. Order No. 872 and market-based pricing
C. Additional Issues
1. Negotiated rates
2. Utility with excess capacity
3. Avoided cost of all-requirements customer
WAIVERS AND TERMINATION OF MUST-PURCHASE OBLIGATION
A. Waivers generally
B. Partial waivers in all-requirements context
C. Termination of must-purchase obligation
1. Adoption of Section 210(m) in EPAct 2005
2. FERC’s initial implementation
3. Expanded implementation
ENFORCEMENT
A. Overview of PURPA enforcement regime
B. Implementation vs. “As applied” challenges
PURPA STANDARDS (PURPA TITLE I)
A. Overview:
1. Differentiation from Title II
2. Generally, what is required
3. Procedural requirements
B. Review of standards
SEIA V. FERC - ORDER NO. 872 APPEAL