Conscripting state regulatory authorities in a federal electric-rate regulatory scheme: a goal of PURPA partially realized

The Public Utility Regulatory Policies Act (PURPA) of 1978 sought to encourage energy conservation, the efficient use of facilities, and fair electric rates. The legislation requires state public service commissions and nonregulated electric utilities to consider 12 standards when they assess service conditions and retail electric rates for utilities selling over 500 million kilowatt-hour. The standards did not apply to sales for resale, and did not provide penalties for failure to meet deadlines. A review of the rulemaking and litigation that followed enactment of PURPA recommends a thorough cost-benefit analysis to determine the effects of imposing compliance enforcement on state and local authorities. The author notes that DOE has not sought this information. 77 references.