Analysis of PURPA and Solar Energy

The Public Utility Regulatory Policies Act of 1978 (PURPA) is designed to promote energy conservation, the efficient use of utility resources, and equitable rates. PURPA specifically directs the Federal Energy Regulatory Commission (FERC) to encourage small power production from renewable resources (and also cogeneration of electric energy as well as heat) by setting standards under which facilities qualify for interconnection, and guidelines for sales between utilities and independent facilities. The way FERC carries out this mandate may critically affect the development of solar alternatives to electric power production from fossil and nuclear resources. This report comments on proposed FERC regulations and suggests ways to encourage small power production within the PURPA mandate. In addition, some internal strains within PURPA are analyzed that seem to limit the effectiveness with which FERC can encourage independent facilities, and possible modifications to PURPA are suggested. 255 references.