PURPA

PURPA
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  The Public Utilities Regulatory Policies Act of 1978 (PURPA) is implemented by the Federal Energy Regulatory Commission and the California Public Utilities Commission (CPUC). Under PURPA each electric utility is required to offer to purchase available electric energy from cogeneration and small power production facilities.
  California Energy Comission. Dictionary of Energy Terms
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  The Public Utility Regulatory Policy Act of 1978. Among other things, this federal legislation requires utilities to buy electric power from private "qualifying facilities," at an avoided cost rate. This avoided cost rate is equivalent to what it would have otherwise cost the utility to generate or purchase that power themselves. Utilities must further provide customers who choose to self-generate a reasonably priced back-up supply of electricity.
  California Energy Comission. Dictionary of Energy Terms

Energy terms . 2014.

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