by Robert Romano At the height of 1970s inflation and in response to the 1973 Arab oil embargo, Congress passed the Public Utility Regulatory Policies Act (PURPA) of 1978. The legislation requires electric utilities to purchase energy from small renewable generators. It has also outlived its usefulness. Since that time, wind, solar and other renewables, excluding hydroelectric, have grown to almost 10 percent of U.S. electricity generation according to data compiled by the U.S. Energy Information Agency. Back in 1978, it was 0.14 percent. Obviously, a lot can change in 40 years. Fortunately, in 2005, Congress amended PURPA in order to take stock of rapid changes in the utility marketplace. In 2018, the Federal Energy Regulatory Commission (FERC) announced it was considering changes and reforms to the program, including which entities ought to be excluded from PURPA’s mandatory purchase of renewable energy requirement. One argument is that the renewable generators have a large enough market footprint to compete on their own without compelling utilities to use the renewable energy. Each local market is different, whereas in some areas, the additional generation can offset potential brownouts and might be desirable, in other areas with more abundant supplies, it’s simply a…
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