On November 19, 2020, the FERC affirmed Order No. 872, the final rule that amended regulations implementing sections 201 and 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA). This affirmation addresses major modifications that have been made to the nation’s energy markets.
Passed in July 2020, Order No. 872 made flexibility possible for state regulatory authorities in establishing avoided cost rates for qualifying facilities’ (QF) sales inside and outside of the organized electric markets. In addition, this final rule gave states the ability to require that energy rates, but not capacity rates, vary during the term of a QF contract. These amendments also revised the “one-mile rule”, which states that those facilities that are owned by the same or affiliated entities, using the same energy resource and located within one mile of the facility for which qualification is sought, should be considered to be at the same site.
This recent order disagrees with most arguments raised on rehearing but provides clarification of the final rule itself regarding the following:
application of the rebuttable presumption of separate sites for the purpose of determining the power production capacity of small power production facilities
the role of independent entities overseeing competitive solicitations
states’ use of variable energy rates in QF contracts and availability of utility avoided cost data
the conditions under which a small power production QF needs to recertify
the PURPA section 210(m) rebuttable presumption of nondiscriminatory access to markets
For additional information, contact Craig Cano (Electric) by phone at: (202) 502-8680 or via email at: firstname.lastname@example.org. Refer to Docket Nos. RM19-15-001 and AD16-16-001, and Order No. 872-A when inquiring. The rule will be effective following publication in the Federal Register.