GlossarySeptember 11, 2005

What is a Public Utilities Regulatory Policy Act (PURPA) of 1978?

A law that requires electric utilities to purchase electricity produced from qualifying power producers that use renewable energy resources or are cogenerators. Power providers are required to purchase power at a rate equal to the avoided cost of generating the power themselves. (See Avoided Costs and Qualifying Facility)

U.S. Department of Energy

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