Utility purchase rates for interconnected small power producers: the status of PURPA 201 and 210 implementation

Current efforts of the states and electrical utilities to comply with the Public Utilities Regulatory Policies Act of 1978 (PURPA) are summarized. This act empowers the Federal Energy Regulatory Commission (FERC) to develop regulations with utility systems. Section 201 of PURPA provides criteria for certification of small power producers. Facilities that satisfy the requirements of Sec. 201 are exempt from regulation as utilities and are eligible for energy and capacity payments from utilities to which they supply power. Section 210 provides for the establishment of buy-back rates that utilities must pay to the small power producers. Since FERC adopted the rules for implementation in February 1980, many utilities have not had time to comply. Some state regulatory agencies have completed their implementation hearings and have established purchase rates for utilities in their jurisdiction. Others are still deliberating on their approach to PURPA implementation.