FERC Issues Final Rule on Electric Utility Mandatory Purchase Obligations under PURPA

On October 24, 2006, the Washington office authored an alert memorandum entitled, “FERC Issues Final Rule on Electric Utility Mandatory Purchase Obligations under PURPA.” The eight-page memo discusses the FERC’s final rule implementing Section 210(m) of the Public Utility Regulatory Policy Act (“PURPA”) as amended by the Energy Policy Act of 2005. Section 210(m) provides, among other things, for termination of the requirement that an electric utility enter into a new contract or obligation to purchase electric energy from qualifying cogeneration facilities and qualifying small power production facilities (“QFs) if the FERC finds that the QF has nondiscriminatory access to one of three categories of markets. This memorandum briefly summarizes the key aspects of the final rule.