FERC's PURPA questions

U.S. energy regulators have invited comments on two issues related to the implementation of the Public Utility Regulatory Policies Act of 1978 (PURPA): its so-called "one-mile rule," and minimum standards for PURPA-purchase contracts.  This opportunity for comment follows a technical conference held earlier this summer.

Congress enacted PURPA to encourage domestic cogeneration and renewable energy production, among other aims.  PURPA established a new class of generating facilities called qualifying facilities (QFs), and gave QFs special rate and regulatory treatment.  Under PURPA, QFs fall into two categories: qualifying small power production facilities and qualifying cogeneration facilities. 

PURPA defines a small power production facility as “a facility which is an eligible solar, wind, waste, or geothermal facility, or a facility which (i) produces electric energy solely by the use, as a primary energy source, of biomass, waste, renewable resources, geothermal resources, or any combination thereof; and (ii) has a power production capacity which, together with any other facilities located at the same site (as determined by the Commission), is not greater than 80 megawatts.”

Under the Commission's so-called "one-mile rule" found in Section 292.204(a) of its regulations, small power production facilities are considered to be at the same site if they are located within one mile of each other, share the same energy resource, and are owned by the same person(s) or its affiliates.  In a September 6, 2016, Notice Inviting Post-Technical Conference Comments, the Commission asked for comments on whether this presumption should be made rebuttable or whether some different spacing requirement should be imposed.

The Commission also asked for comment on the appropriate minimum length of a PURPA purchase contract, or other required contract terms and conditions affecting the development of qualifying facilities (QFs).  To date, the Commission has not required any particular minimum contract length or other minimum contract provisions in PURPA-purchase contracts.

Comments in Docket No. A16-16-000 are due on or before November 7, 2016.