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 ob-
tained the Federal Energy Regulatory Commission’s [FERC] QF—
Qualifying Facility status). While the values and protection cur-
rently granted a QF under the regulated utility environment may
ultimately be insignificant in the fully functional, unregulated envi-
ronment, the transition between regulated and unregulated markets
may prove difficult depending 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 “systems” controlling the impacting issues are in many cases
quite complex, cumbersome, and tied together with an abundance
of “red-tape” and bureaucratic processes