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.
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