PURPA, or the Public Utility Regulatory Policies Act, is a United States federal law that was enacted in 1978. This legislation was designed to promote and encourage greater competition and conservation in the electric power industry. The main objective of PURPA is to reduce the nation's dependence on fossil fuels and to diversify the sources of electricity generation.
Under PURPA, utilities are required to purchase electricity from qualifying facilities, known as QFs, which can include small-scale renewable energy projects or cogeneration facilities. This provision ensures that QFs have access to the electric grid and can sell their power at favorable rates. The act also establishes a framework for ensuring that the prices paid by utilities for purchasing electricity from QFs are just and reasonable.
PURPA also mandates that electric utilities provide interconnection services to QFs, ensuring that they can access the grid without discrimination or excessive fees. Additionally, the law encourages energy efficiency and conservation by promoting the use of distributed generation and cogeneration technologies.
Furthermore, PURPA created the Federal Energy Regulatory Commission (FERC) to oversee and administer its provisions. FERC is responsible for establishing rules and regulations to implement PURPA and to ensure its proper enforcement.
Overall, PURPA serves as a significant piece of legislation in the United States energy sector, playing a vital role in promoting renewable energy, fostering competition, and diversifying the nation's energy sources.
