FERC Reversal Is Bad News For Small Power Generators

Law360 (September 10, 2020, 3:33 PM EDT) -- On Sept. 1, a sharply divided Federal Energy Regulatory Commission abandoned its long-standing approach for determining the power production capacity of a generation facility seeking small power production qualifying facility, or QF, status under the Public Utility Regulatory Policies Act, or PURPA.[1]

For years, FERC had held that the maximum energy output a facility could inject through its interconnection point — i.e., its "send out" — determined whether the facility complied with the 80-megawatt maximum power production capacity for small power production QF status under PURPA.[2]

Now, the power production capacity for a facility not yet certified or self-certified as a small...

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