What Happens If PURPA Goes Belly-Up?: Cogeneration Will Take Another Hit.

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 obtained the Federal Energy Regulatory Commission's [FERC] QF—Qualifying Facility status). While the values and protection currently granted a QF under the regulated utility environment may ultimately be insignificant in the fully functional, unregulated environment, the transition between regulated and unregulated markets may prove difficult depending on the exact location and structure of a cogen facility.