New FERC Order No. 872 Likely to Increase Regulatory Burden on Small Renewable Energy Facilities
The Federal Energy Regulatory Commission recently issued Final Order No. 872, implementing sweeping changes to the regulations that implement the Public Regulatory Policies Act of 1978, also known as PURPA. Although the Commission described the changes as a move to “modernize the Commission’s interpretation of PURPA,” the new regulations will likely pose significant challenges for small renewable energy facilities, including small solar generators, that rely on PURPA to create a guaranteed market for electricity. Although the new rules retain many of the benefits of PURPA, SPR expects Order No. 872 to increase the regulatory burden on small renewable facilities and add significant challenges for financing their development.