PURPA

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 established separately docketed cases for all rate-regulated utilities and directed them to make avoided cost calculation filings in June 2016.  The cases are proceeding and links to each docket are provided below.

 June 7, 2017 Settlement Agreement

Related Dockets

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.

Accomplishments

  • Eight Purpa orders issued:
        Consumers 18090 – 2 Remand Orders, 2 Final Orders
        DTE 18091 – 1 Remand Order
        UPPCo 18094 – 1 Remand Order, 1 Settlement Order
        Alpena 18089 – 1 Settlement Agreement

Additional Steps

Awaiting final PURPA orders for five utilities
    DTE 18091 – Final Order needed
    I&M 18092 – no Orders issued
    Northern States 18093 – no Orders issued
    WPS 18095 – no Orders issued
    WEPCo 18096 – no Orders issued

PURPA TAC Reports

Final Report

PURPA TAC Events

March 3, 2016 Agenda
February 10, 2016 Agenda | MPSC Staff | PURPA Administrative Process
February 3, 2016 Agenda | Ken Rose | IPPC 1 | IPPC 2
January 13, 2016 Agenda MPSC Staff | PURPA Implementation
December 8, 2015 Agenda | Elefant | MPSC Staff

PURPA - Related Documents

Issue Brief

Consumers Comments

IPPC Comments

ELCP/5Lakes Comments

Congressional Letters

FERC - PURPA Website

PURPA Title II Compliance Manual

PURPA Contract List – Prepared by MPSC Staff

Reviving PUPRA’s Purpose

U-8871

U-6798