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 regulates the rates and services of electric utilities in California, as well as other states. PURPA gives the Federal Energy Regulatory Commission (FERC) the authority to set standards for state-regulated electric utilities that protect both consumers and the environment. PURPA also requires all state-regulated electric utilities to purchase electricity from eligible cogeneration and small power production facilities at the utilities’ full avoided cost. This avoided cost rate allows small power production facilities to sell their excess electricity at an affordable rate to the utility and help the utility reduce its costs. By reducing the utility’s costs, PURPA can help consumers by lowering their electricity bills. PURPA also requires electric utilities to offer customers an alternative to traditional electricity. This is done through programs such as net metering, which requires utilities to purchase any excess electricity generated by renewable sources such as solar panels back from customers and provides customers with a credit against their electricity bills. In short, the purpose of PURPA is to protect consumers and the environment by providing access to alternative energy sources and promoting competition among electric utilities. This law has helped make electricity more affordable and accessible, while also helping the environment by promoting renewable energy sources.

Related FAQs

What is the purpose of the Electric Reliability Council of Texas (ERCOT)?
What is the purpose of the National Electric Reliability Council (NERC)?
Are there restrictions on the types of services public utilities can offer?
What are the legal obligations of public utility employees?
What is the purpose of the Telecommunications Act of 1996?
What are the responsibilities of the Department of Energy (DOE) in utilities law?
What are the responsibilities of a utility company in regards to construction and maintenance?
How does utility companies report consumer complaints?
What is the purpose of the Natural Gas Act of 1978?
What is the role of the Department of Energy (DOE) in utilities law?

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

Related FAQs

Related Blog Posts