Economic and regulatory aspects of cogeneration: the implementation of Section 210 of the Public Utility Regulatory Policies Act of 1978

Thesis/Dissertation · Fri Jan 01 00:00:00 EST 1982

OSTI ID:5450463

Vincent, J W

In February of 1980 the Federal Energy Regulatory Commission (FERC) promulgated a set of rules that were to commence the implementation process of Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA). Of particular interest to economists are the pricing provisions in the rules that pertain to integrating dispersed sources of electric power generation into conventional electric utility systems. The full avoided cost pricing provision couples a utility mandate to purchase power from qualified dispersed facilities (cogenerators, wind power, small hydro facilities, etc., hereafter denoted QFs) with the requirement that the price the utility pays for such purchases be equal to the full extent of the cost it avoids by not generating the power itself. The simultaneous purchase and sale billing scheme requires a utility to purchase the gross power output of a QF at the full avoided cost rate and simultaneously sell back to the QF its power requirement on the applicable retail tariff. Theoretical investigation of these two provisions reveals that, properly defined, they are consistent with improving economic signals with respect to electricity generation.

• OSTI ID: 5450463
• Resource Relation: Other Information: Thesis (Ph. D.)
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
COGENERATION
REGULATIONS
DISPERSED STORAGE AND GENERATION
PRICES
PUBLIC UTILITY REGULATORY POLICIES ACT
ENERGY POLICY
IMPLEMENTATION
DEUS
ENERGY SYSTEMS
GOVERNMENT POLICIES
LAWS
NATIONAL ENERGY ACT
POWER GENERATION
STEAM GENERATION
290800* - Energy Planning & Policy- Heat Utilization- (1980-)
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation
296001 - Energy Planning & Policy- Electric Power Generation- (-1989)