Electric - Qualifying Facilities
What Are the Benefits of QF Status?
QFs may enjoy certain benefits under Federal, State and local
laws. Among the primary benefits that are conferred upon QFs by
Federal law are as follows:
- The right to sell energy and capacity to the host utility
at the host utility's avoided cost rate (see 18 C.F.R. §§
292.303 and 292.304), provided the host utility has not been
relieved from its QF purchase obligation under section 210(m)
of PURPA. Avoided cost is the incremental
cost to an electric utility of electric energy or capacity
which, but for the purchase from the QF,
such utility would generate itself or purchase from another
source (see 18 C.F.R. § 292.101(b)(6)). Although host utilities
are required under Federal law to make avoided cost rates
available to certain QFs, the actual avoided cost rates are
established under State authority (see 18 C.F.R. §§ 292.302
and 292.304).
- The following categories of QFs are largely exempt from
the provisions of the Public Utility Holding Company Act of
2005 (PUHCA) and certain State laws and regulations respecting
the rates and other financial and organizational aspects of
QFs (see 18 C.F.R. § 292.602):
- Cogeneration facilities of any size;
- Small power production facilities 30 MW or smaller;
- Geothermal and biomass small power production facilities
of any size; and
- Small power production facilities of any size that are
designated as "eligible" under section 3(17)(E) of the
FPA.
- The following categories of QFs are largely exempt from
most sections (not including sections 205, 206 and certain
other sections, unless otherwise indicated below) of the FPA
(see 18 C.F.R. § 292.601):
- Cogeneration facilities of any size;
- Small power production facilities 30 MW or smaller;
- Geothermal small power production facilities of any
size; and
- Small power production facilities of any size that are
designated as "eligible" under section 3(17)(E) of the
FPA.
- Energy and capacity sales made by the following categories
of QFs are exempt from scrutiny under sections 205 and 206
of the FPA (see 18 C.F.R. § 292.601):
- QFs 20 MW or smaller;
- QFs making sales pursuant to a contract
executed on or before March 17, 2006; and
- QFs making sales pursuant to a state
regulatory authority's implementation of section 210 of
PURPA.
|
 |
|
