News Release for rehearing Order 872-A

11/19/2020

FERC Affirms, Clarifies PURPA Final Rule | Federal Energy Regulatory Commission

NEWS RELEASES

FERC Affirms, Clarifies PURPA Final Rule
November 19, 2020

Docket No. RM19-15-001,  AD16-16-001
Item No. E-3
The Federal Energy Regulatory Commission today affirmed Order No. 872, the final rule that
revised its regulations implementing the Public Utility Regulatory Policies Act (PURPA) to
address significant changes that have taken place in the nation’s energy markets. Today’s
action dismisses or disagrees with most arguments raised on rehearing but provides
clarification of the final rule itself.
Order No. 872 granted flexibility to state regulatory authorities in establishing avoided cost
rates for qualifying facilities’ (QF) sales inside and outside of the organized electric markets.
 The July 16 final rule also gave states the ability to require that energy rates, but not capacity
rates, vary during the term of a QF contract.
The final rule also modified the “one-mile rule.”  It also reduced the rebuttable presumption for
nondiscriminatory access to power markets, from 20 megawatts to 5 megawatts, for small
power production, but not cogeneration, facilities.  Finally, for a QF to establish a legally
enforceable obligation, the final rule required that the QF must demonstrate commercial
viability and financial commitment to build under objective and reasonable state-determined
criteria.
Today’s order provides clarifications related to:
States’ use of variable energy rates in QF contracts and availability of utility avoided cost
data;
The role of independent entities overseeing competitive solicitations;
The circumstances under which a small power production QF needs to recertify;
Application of the rebuttable presumption of separate sites for the purpose of determining
the power production capacity of small power production facilities; and
The PURPA section 210(m) rebuttable presumption of nondiscriminatory access to markets.
R-21-6
(30)
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11/19/2020

FERC Affirms, Clarifies PURPA Final Rule | Federal Energy Regulatory Commission

Contact Information
Craig Cano (Electric)
Telephone: 202-502-8680
Email: [email protected]

This page was last updated on November 19, 2020

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