FERC Proposal Would Shake Up Renewable Energy Pricing

Law360 (October 8, 2019, 1:54 PM EDT) -- 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]

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...

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