McNees Minute: The Federal Energy Regulatory Commission

Sponsored Content: McNees Minute

Jo-Anne Thompson, Esq. – 717-237-5285
The Federal Energy Regulatory Commission or FERC requires electric utilities to buy power from qualifying cogeneration and small power production facilities. This is called the mandatory purchase requirement.  FERC has allowed utilities to avoid this obligation when transacting with qualifying facilities that have nondiscriminatory access to certain competitive markets.  Before the end of last year, qualifying cogeneration facilities and small power production facilities with more than 20 MW of capacity enjoyed a rebuttable presumption that they had such access.  Effective December 31, 2020, FERC has made a change to these rules, reducing the threshold for qualifying small power production facilities to 5 MW of capacity. The Energy and Environmental Law Group at McNees houses decades of experience representing commercial and industrial customers in a wide range of energy-related matters.

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