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by EQ Research
December 26, 2016

The Public Utility Regulatory Policies Act (PURPA) has garnered the attention -- and the consternation -- of some utilities and regulators in a number of states experiencing rapid growth in their solar markets. PURPA, originally enacted in 1978, requires electric utilities to purchase the output of certain combined heat and power (CHP) and renewables facilities up to 80 megawatts -- known as Qualifying Facilities (QFs) -- at the utility’s avoided-cost rate, and to provide electric supply service to QFs. 

Under PURPA, states must establish...