PURPA is a federal law enacted in 1978 in reaction to an energy crisis and implemented by state public service commissions for rate-regulated electric utilities. PURPA’s goals are to encourage competition, conservation, reliability and efficiency in generating and delivering electricity. One of the ways PURPA was set up to accomplish its goals was by establishing a new class of power generation facilities -known as qualifying facilities (QFs) -which would receive a special rate for selling their electricity back to the local electric utility and related regulatory treatment. PURPA imposed an obligation on local (“host”) utilities to purchase power from QFs in an effort to promote competition and achieve the other policy goals embodied in the federal law. Federal rules require state public service commissions and non-regulated utilities (primarily rural cooperatives and municipalities not regulated by state commissions) to set rates for the host utility to buy power from a QF. For an issue brief about PURPA, click here.
The Commission issued a Report on the Implementation of the Public Utility Regulatory Policies Act of 1978 (PURPA), as required by Section 6v of PA 341 of 2016. This report describes the status of qualifying facilities (QFs) in the state, the current status of power purchase agreements (PPAs) for each QF, and the Commission’s efforts to comply with the requirements of PURPA.
The Commission issued an order in docket U-20095 to address issues related to the avoided cost rates for capacity. Interested parties may file written or electronic comments on the determination of utility capacity requirements over a 10-year planning horizon and the criteria for evaluating a legally enforceable obligation. Final order was issued October 5, 2018.
Awaiting final PURPA orders for five utilities
PURPA TAC Reports
PURPA TAC Events
PURPA - Related Documents
PURPA Contract List – Prepared by MPSC Staff