FERC Affirms that CLEAN Contracts (Feed-in Tariffs) are Legal

Date: 27 Jan 2011 | posted in: Energy, Energy Self Reliant States | 0 Facebooktwitterredditmail

Overruling a utility challenge, the Federal Energy Regulatory Commission (FERC) affirmed today that states have the right to set prices for mandated renewable energy purchases and that these prices may vary by technology:

“[W]here a state requires a utility to procure energy from generators with certain characteristics,” the state may set the wholesale rate (known as ‘avoided cost’) for that specific type of energy.  Id. at para. 30. Therefore, a state can require utilities to purchase electricity generated from differentiated technologies (wind, solar, wave, etc.) and set the rate for purchases from each of these generators.

Photo credit: Flickr user KeithBurtis

John Farrell
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John Farrell

John Farrell directs the Energy Democracy initiative at the Institute for Local Self-Reliance and he develops tools that allow communities to take charge of their energy future, and pursue the maximum economic benefits of the transition to 100% renewable power.