How to soften the impact of FERC order limiting cogeneration right to backup power

Journal Article · Mon Jan 27 04:00:00 EST 1986 · Energy User News; (United States)

OSTI ID:5989362

Kessler, M L

The Federal Energy Regulatory Commission (FERC) decision in a case involving a proposal in Puerto Rico will dampen third-party financing for cogeneration projects nationwide. The ruling held that a consuming facility or user whose energy-producing facility is owned and operated by a separate source is not entitled, under the Public Utility Regulatory Policies Act (PURPA), to backup power from its utility. The decision gives a narrow interpretation that considers only the energy-producing, and not the energy-consuming, aspect of the qualifying facility. Without third-party financing, tax-exempt entities and companies with no current tax liability cannot make use of the financial incentives for cogeneration. Despite a variety of restructuring and financing alternatives to avoid the problems posed by the decision, the FERC decision creates risks and regulatory uncertainties.

• Research Organization: Wickwire, Gavin and Gibbs, Washington, DC
• OSTI ID: 5989362
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 11:4; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290800 -- Energy Planning & Policy-- Heat Utilization-- (1980-)
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320304* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Waste Heat Recovery & Utilization
COGENERATION
DEUS
ENERGY SYSTEMS
FINANCIAL INCENTIVES
FINANCING
LAWS
LEGAL ASPECTS
NATIONAL ENERGY ACT
NATIONAL ORGANIZATIONS
OWNERSHIP
POWER GENERATION
PUBLIC UTILITY REGULATORY POLICIES ACT
REGULATIONS
STEAM GENERATION
US DOE
US FERC
US ORGANIZATIONS