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

The Public Utility Regulatory Act (PURPA) of 1978 was enacted by the United States Congress as part of the National Energy Act. In Maryland, PURPA works to promote efficiency and conservation of energy resources through the encouragement of renewable energy sources and cogeneration. PURPA was designed to promote competition in the electric utility industry by requiring utility companies to purchase electricity from non-utility generating facilities. This provides an incentive to develop renewable sources of energy such as solar and wind, as well as to create independent power producers (IPPs) that are able to generate and sell electricity. PURPA also sets standards for the rates that utility companies must pay for electricity, which are known as “avoided costs.” These standards help to ensure that customers will be charged a fair rate for their electricity. In addition, PURPA sets the rules for electric utilities in Maryland, including the type of generation that is allowed and how it is regulated. This act also gives authority to the Public Service Commission to make sure that all electric utilities in the state are operating within the guidelines set forth in the law. PURPA has had a significant impact on the Maryland energy landscape, helping to drive the development of renewable energy sources, foster competition in the energy market, and ensure fair pricing for customers. As such, the purpose of the Public Utility Regulatory Act of 1978 is to promote competition in the energy market and ensure the availability of renewable energy sources in Maryland.

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

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