PURPA - NEW HORIZONS FOR ELECTRIC UTILITIES AND INDUSTRY.

In 1978 the U. S. Congress amended the Federal Power Act resulting in the issuance of the Public utilities Regularity Policies Act (PURPA). Briefly stated, this Act recognized the energy saving potential of cogeneration and small power production, the need for positive incentives for development of these facilities and the private requirement to remain unregulated. This paper briefly describes the basic principles of cogeneration and small power production as an energy saving means for the generation of steam and electricity and then addresses the major provisions of PURPA's Section 201/210 and The Federal Energy Regulatory Commission (FERC) rules an regulations applying to this Act.