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FERC | RIN: 1902-AF67 | Publication ID: Fall 2020 |
Title: Qualifying Facility Rates and Requirements; Implementation Issues Under the Public Utility Regulatory Policies Act of 1978 | |
Abstract:
In the Order, the Commission issued its final rule approving certain revisions to its regulations implementing sections 201 and 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA). The changes will enable the Commission to continue to fulfill its statutory obligations under sections 201 and 210 of PURPA. The key changes to the regulations include the following: First, the final rule grants states the flexibility to require that energy rates (but not capacity rates) in QF power sales contracts and other legally enforceable obligations vary in accordance with changes in the purchasing electric utility’s as-available avoided costs at the time the energy is delivered. Second, the final rule grants states flexibility to allow QFs to have a fixed energy rate, which can be based on projected energy prices during the term of the QF’s contract based on the anticipated dates of delivery. Third, the final rule grants states flexibility to set "as-available" QF energy rates based on the locational marginal price (LMP) established in organized electric markets. With respect to QFs selling to electric utilities located outside of the organized electric markets, the final rule provides states the option to set as-available energy avoided cost rates either at competitive prices from liquid market hubs or calculated from a formula based on natural gas price indices and specified heat rates, provided that the states first determine that such prices represent the purchasing electric utilities’ avoided costs. Fourth, the final rule provides states the flexibility to set energy and capacity rates pursuant to a competitive solicitation process conducted pursuant to transparent and non-discriminatory procedures. Fifth, the final rule modifies the Commission’s "one-mile rule" for determining whether affiliated small power production facilities are considered to be at the same site for purposes of determining whether a small power production facility meets the statutory 80 MW limit. Sixth, the final rule allows electric utilities, state regulatory authorities, and other interested parties to challenge an initial self-certification or self-recertification by filing a protest. Seventh, the final rule revises the Commission’s regulations which provide for the termination of an electric utility’s obligation to purchase from a QF with nondiscriminatory access to certain markets, updating the threshold for small power production facilities (but not cogeneration facilities) to 5 MW. Finally, the final rule clarifies that a QF must demonstrate commercial viability and a financial commitment to construct its facility pursuant to objective and reasonable state-determined criteria before the QF is entitled to a contract or legally enforceable obligation (Docket Nos. RM19-15-000 and AD16-16-000). |
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Agency: Federal Energy Regulatory Commission(FERC) | Priority: Substantive, Nonsignificant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Final Rule Stage |
Major: No | Unfunded Mandates: No |
EO 13771 Designation: Independent agency | |
CFR Citation: 18 CFR 292 18 CFR 375 | |
Legal Authority: 16 U.S.C. 791a to 825r 16 U.S.C. 2601 to 2645 31 U.S.C. 9701 42 U.S.C. 7101 to 7352 5 U.S.C. 551 to 557 15 U.S.C. 717 to 717w 15 U.S.C. 3301 to 3432 16 U.S.C. 791 to 825r |
Legal Deadline:
None |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Lawrence Greenfield Legal Information, Office of General Counsel Federal Energy Regulatory Commission 888 First Street NE, Washington, DC 20426 Phone:202 502-6415 Email: lawrence.greenfield@ferc.gov Helen Shepherd Technical Information, Office of Energy Market Regulation Federal Energy Regulatory Commission 888 First Street NE, Washington, DC 20426 Phone:202 502-6176 Email: helen.shepherd@ferc.gov Thomas Dautel Technical Information, Office of Energy Policy and Innovation Federal Energy Regulatory Commission 888 First Street NE, Washington, DC 20426 Phone:202 502-6196 Email: thomas.dautel@ferc.gov |