Yesterday, the Federal Energy Regulatory Commission (FERC) issued Order No. 872 and implemented the largest overhaul to FERC’s regulations affecting Qualifying Facilities (QFs) in more than a decade. The order itself is 491 pages in length and there remain plenty of details to unpack in its implementation (including future proceedings to come at the FERC and state public utility commission level), but what is clear is that Order No. 872 substantially changes the ground rules for developing QFs.
Order No. 872 includes the following significant changes, among others:
There is no avoiding the fact that Order No. 872 is a game-changer for QFs and utilities alike when it comes to PURPA, and yesterday’s order represents yet another instance where PURPA has become increasingly narrowed by FERC. There is more to play out with respect to Order No. 872 and we will provide further details as its implementation signals the order’s true scope.