The post FERC Finalizes PURPA Rule Reforms appeared first on POWER Magazine.

The Federal Energy Regulatory Commission (FERC) finalized a long-awaited rule revising regulations that govern qualifying small power producers and cogenerators under the Public Utility Regulatory Policies Act of 1978 (PURPA). While FERC said the rule was necessary to respond to significant market changes, the action drew mixed reactions from industry. 

FERC’s final rule issued on July 17 is the first major change to regulations it issued in 1980 under the pivotal law, which most experts agree has spurred the growth of smaller generators and played a major role in reshaping power sector business models.

While Congress enacted PURPA to reduce U.S. dependence on oil and natural gas, and encourage the development of alternative generation, including cogeneration and small-scale renewable generation, FERC has long-discussed updating its regulations under PURPA because it says the energy industry has since undergone many significant changes. 

“It’s been my view from the start that FERC should modernize our regulations in ways that not only meet our statutory obligations, but also protect consumers and preserve competition,” said FERC Chairman Neil Chatterjee.…

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