What Happens If PURPA Goes Belly-Up? Cogeneration Will Take Another Hit. Here’s What You Can Do To Protect Yourself. But You’ve Got to Move FAST.

Abstract

With impending utility deregulation sweeping the nation, the
fate of the “official” cogeneration facility may be on unsteady ground
(“official” here is referenced as the facility which has obtained the
Federal Energy Regulatory Commission’s [FERC] QF—Qualifying Fa-
cility status). While the values and protection currently granted a QF
under the regulated utility environment may ultimately be insignifi-
cant in the fully functional, unregulated environment, the transition
between regulated and unregulated markets may prove difficult de-
pending on the exact location and structure of a cogen facility.
The primary reason for this concern will depend on the facility’s
ability to quickly and easily access the grid, power suppliers, and power
buyers in the transition to the unregulated status environment. The “sys-
tems” controlling the impacting issues are in many cases quite com-
plex, cumbersome, and tied together with an abundance of “red-tape”
and bureaucratic processes.