FERC

Public Utility Regulatory Policies Act of 1978 (PURPA) (Public Law 95-617)

PURPA was passed in response to the unstable energy climate of the late 1970s. PURPA sought to promote conservation of electric energy. Additionally, PURPA created a new class of nonutility generators, small power producers, from which, along with qualified cogenerators, utilities are required to buy power.

PURPA was in part intended to augment electric utility generation with more efficiently produced electricity and to provide equitable rates to electric consumers. Utility companies are required to buy all electricity from "Qfs"--qualifying facilities--at avoided cost. PURPA expanded participation of nonutility generators in the electricity market, and demonstrated that electricity from nonutility generators could successfully be integrated with a utility’s own supply. PURPA requires utilities to buy whatever power is produced by qfs (usually cogeneration or renewable energy).   Utilities want these provisions repealed, critics argue that it will decrease competition and impede development of the renewable energy industry. The Fuel Use Act of 1978 (repealed in 1987) also helped Qfs become established. Under FUA, utilities were not allowed to use natural gas to fuel new generating technologies but Qfs which were by definition not utilities, were able to take advantage of abundant natural gas and abundant new technologies (such as combined-cycle). The technologies lowered the financial threshold for entrance into the electricity generation business as well as shortened the lead time for constructing new plants.

Electric Consumers Protection Act of 1986 (ECPA)  (Public Law 99-495)

This Act was the first significant amendment to the hydro licensing provisions of the FPA since 1935. “The amendments have made four principal changes to Part I of the FPA. First, the municipal preference on relicensing has been eliminated. Second, the importance of environmental considerations in the licensing process has been greatly increased and the role of the State and Federal fish and wildlife agencies is expanded. Third, PURPA benefits for hydroelectric projects at new dams and diversions were eliminated unless the projects satisfy stringent environmental conditions. Finally, the FERC’s enforcement powers have been increased substantially.” f

Energy Policy Act of 1992 (EPACT) (Public Law 102-486)

This Act created a new category of electricity producer, the exempt wholesale generator, which narrowed PUHCA's restrictions on the development of nonutility electricity generation. The law also mandated that FERC open up the national electricity transmission system to wholesale suppliers on a case-by-case basis.  EPAct created a competitive wholesale framework whereby transmission access was opened to wholesale generators of power (wholesale buyers of electricity such as electric utilities buy electricity at wholesale prices to sell it on a retail basis). The law created a category of electricity generators exempt from PUHCA. Intended to increase competition in the electric generating sector by creating new entities, called exempt wholesale generators (EWGs), that generate and sell electricity at wholesale without being regulated as utilities under PUHCA. Title also assured the EWGs a way to transmit their power to its purchaser.

Energy Policy Act of 2005 (EPACT) (Public Law 109-58)

The Energy Policy Act of 2005 was the first major energy law enacted in over a decade, and makes the most significant changes in Commission authority since the Federal Power Act and Natural Gas Act. By passing the Energy Policy Act of 2005, Congress signaled a strong vote of confidence in the Commission. The Energy Policy Act of 2005 gave the Commission significant new responsibilities and granted it significant new authority to discharge these responsibilities by modifying the Federal Power Act, the Natural Gas Act, and the Public Utility Regulatory Policies Act of 1978. In addition the Energy Policy Act of 2005 repealed the Public Utility Holding Company Act of 1935 and in its place created a new rule, which emphasizes access to books and records.