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Title: PURPA 210 avoided cost rates: Economic and implementation issues

Journal Article · · Energy Syst. Policy; (United States)
OSTI ID:6194772

The purpose of Section 210 of the Public Utilities Regulatory Policies Act (PURPA) was to promote the utilization of waste and renewable fuels and cogeneration processes for increasing electric power supplies. It represents a radical change in policy by allowing financially unregulated parties to generate power in ''qualifying facilities'' and by requiring utilities to purchase this power at the utilities' marginal (or ''avoided'') cost. PURPA 210 has clearly had a major impact as measured by the actual and proposed number of new qualifying facilities; however, implementation has been difficult due to the adversarial nature of the process for negotiating or setting the avoided cost rates. This paper reviews the pertinent PURPA rules and regulations, analyzes the status of current avoided cost rates that have been established, and discusses implementation issues and options for resolving those issues.

Research Organization:
Science and Public Policy Program, 601 Elm Avenue, Norman, OK 73019
OSTI ID:
6194772
Journal Information:
Energy Syst. Policy; (United States), Vol. 11:2
Country of Publication:
United States
Language:
English