0-9 a b c d e f g h i j k l m n o p q r s t u v w y z search

TeachMeFinance.com - explain Public Utility Regulatory Policies Act (PURPA) Public Utility Regulatory Policies Act (PURPA) The term 'Public Utility Regulatory Policies Act (PURPA)' as it applies to the area of reclamation can be defined as 'One of five bills signed into law on November 8, 1978, as the National Energy Act. PURPA is a broad statute aimed at expanding the use of cogeneration and renewable energy resources. PURPA created a new class of power producers called Qualifying Facilities (QFs). PURPA requires electric utilities to buy power from non-utility generators who qualify under PURPA's criteria. Utilities must purchase this power, regardless of whether they need it, at a price equal to the incremental cost they would incur to produce power itself equivalent to the amount of power purchased from cogenerators or small power producers. This is called the utilities' 'avoided cost.' Some states set the avoided cost rate above true avoided cost in order to encourage QF development. It has been estimated that, between the years 1994 and 2005, electric consumers will pay roughly $38 billion above utilities'current avoided costs for power purchased under PURPA's requirements'. Previous 5 Terms: Public Utilities Commission (Public Service Commission) Public utility Public utility district Public Utility Holding Company Act (PUHCA) Public Utility Holding Company Act of 1935 (PUHCA) Next 5 Terms: Public Utility Regulatory Policies Act of 1978 Public Utility Regulatory PoliciesAct (PURPA) of 1978 public water use Publications Publicly owned electric utility About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.