Abstract
The Public Utility Regulatory Policies Act (PURPA) set the institutional and economic framework for the encouragement of cogeneration as a means of conserving energy. After 10 years of experience with PURPA, utilities and cogenerators have leveled many criticism aagainst cogeneration policy. Some of these criticisms stem from states', utilities', and cogenerators' learning about cogeneration policy. But much of the criticism results from misunderstanding that benefits of cogeneration should accrue to society as a whole, not just cogenerators or utilities. Cogeneration policy is basically sound, although improvements are needed regarding price signals and institution building.
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