THE ENERGY POLICY ACT OF 2005: PURPA REFORM, THE AMENDMENTS AND THEIR IMPLICATIONS

This article addresses one of the main aspects of Public Utility Regulatory Policies Act of 1978 (PURPA), codified at section 210 of the Act, which, together with the implementing regulations promulgated by the Federal Energy Regulatory Commission, established a class of generators known as "qualifying facilities" (QFs) and provided them certain benefits and exemptions in order to encourage their development. The PURPA amendments and the implementing regulations will affect the development of new cogeneration facilities and at least to some extent alter the regulatory framework under which existing QFs operate. The precise effects these changes will have on the QF industry will depend on several factors, including economic conditions, competitive power prices, and other factors not directly related to legislation or regulation. However, it is clear that a new era of PURPA regulation has begun: one in which PURPA is likely to be less powerful and less relevant than before.