Implementing PURPA : Renewable Resource Development in the Pacific Northwest : Executive Summary.

Abstract

The Public Utilities Regulatory Policies Act (PURPA) of 1979 requires that electrical utilities interconnect with qualifying facilities (QFs) and purchase electricity at a rate based upon their full avoided cost of providing both capacity and energy. Facilities that qualify for PURPA benefits include solar or geothermal electric units, hydropower, municipal solid waste or biomass-fired power plants, and cogeneration projects that satisfy maximum size, fuel use, ownership, location, and/or efficiency criteria. The mandate of PURPA, coupled with the electrical energy deficits projected to occur in the Pacific Northwest by the mid 1980s, led to resurgence of interest in the development of small, decentralized, non-utility owned and operated generating stations. A variety of would-be developers conducted feasibility studies and initiated environmental permitting and power marketing discussions with appropriate authorities. While many proposed PURPA projects fill by the wayside, others were successfully brought on-line. A variety of public and private sector developers, including cities, counties, irrigation districts, utilities, ranchers, timber companies, and food processing plants, successfully negotiated PURPA-based, or share-the-savings'' power purchase contracts. Other developers run their meter backwards'' or provide energy to their local utilities at the same rate that would otherwise be paid to Bonneville. This document provides a summary resourcemore » development of these renewable projects in the Pacific Northwest.« less