What is the purpose of the Public Utility Regulatory Act of 1978 (PURPA)?

The Public Utility Regulatory Act of 1978 (PURPA) is a federal law that has the purpose of promoting energy efficiency and the use of renewable energy sources. It requires electric utilities to purchase energy from qualifying independent generators, such as small hydroelectric facilities and wind and solar power facilities. It also requires that these independent generators get fair compensation for the energy produced. PURPA also works to promote energy efficiency by setting standards for electric utilities to save energy. It also requires electric utilities to consider cost-effective energy efficiency and conservation measures before resorting to more expensive methods of generating electricity. In Arkansas, the law sets standards for retail electric rates which are used by electric utilities to bill customers. It also requires electric utilities to meet certain renewable energy portfolio standards. This means that a certain percentage of the electricity they are selling must come from renewable sources such as solar or wind energy. Overall, the purpose of PURPA is to promote the use of renewable energy sources, increase energy efficiency, and ensure that electric utilities are providing customers with fair electric rates. It also has the benefit of helping to reduce greenhouse gas emissions by promoting renewable energy sources.

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What is the purpose of the Public Utility Regulatory Act of 1978 (PURPA)?

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