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California Regulator to Revisit 40-Year-Old Law Setting Payouts For Renewable Producers

The California Public Utilities Commission is weighing updates to the rules governing the power purchase contracts utilities must enter into with small producers under the Public Utility Regulatory Policies Act of 1978, or PURPA, to reflect market changes, according to a July 11 proposed decision. The commission intends to adopt a new standard offer contract for facilities that are 20 megawatts or less to sell electricity to utilities, as well as a price payable at the time of delivery if a facility chooses to sell as-available energy. Under PURPA, independent generators that meet certain criteria based on size and technology or efficiency are entitled to sell their output to regulated utilities at the avoided cost, or the cost the utility would spend to generate the electricity or purchase from another source. The rule enabled the first renewable investments in California and has resulted in over 4,000 megawatts of qualifying facilities in the state.

July 11, 2018
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