C.F.R. » Title 18 » CHAPTER I—FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY › SUBCHAPTER K—REGULATIONS UNDER THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 › PART 292—REGULATIONS UNDER SECTIONS 201 AND 210 OF THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 WITH REGARD TO SMALL POWER PRODUCTION AND COGENERATION › Subpart A—General Provisions

18 C.F.R. § 292.101

Definitions

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(a) General rule. Terms defined in the Public Utility Regulatory Policies Act of 1978 (PURPA) shall have the same meaning for purposes of this part as they have under PURPA, unless further defined in this part.

(b) Definitions. The following definitions apply for purposes of this part.

(1) Qualifying facility means a cogeneration facility or a small power production facility that is a qualifying facility under Subpart B of this part.

(i) A qualifying facility may include transmission lines and other equipment used for interconnection purposes (including transformers and switchyard equipment), if:

(A) Such lines and equipment are used to supply power output to directly and indirectly interconnected electric utilities, and to end users, including thermal hosts, in accordance with state law; or

(B) Such lines and equipment are used to transmit supplementary, standby, maintenance and backup power to the qualifying facility, including its thermal host meeting the criteria set forth in Union Carbide Corporation, 48 FERC ¶ 61,130, reh'g denied, 49 FERC ¶ 61,209 (1989), aff'd sub nom., Gulf States Utilities Company v. FERC, 922 F.2d 873 (D.C. Cir. 1991); or

(C) If such lines and equipment are used to transmit power from other qualifying facilities or to transmit standby, maintenance, supplementary and backup power to other qualifying facilities.

(ii) The construction and ownership of such lines and equipment shall be subject to any applicable Federal, state, and local siting and environmental requirements.

(2) Purchase means the purchase of electric energy or capacity or both from a qualifying facility by an electric utility.

(3) Sale means the sale of electric energy or capacity or both by an electric utility to a qualifying facility.

(4) System emergency means a condition on a utility's system which is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property.

(5) Rate means any price, rate, charge, or classification made, demanded, observed or received with respect to the sale or purchase of electric energy or capacity, or any rule, regulation, or practice respecting any such rate, charge, or classification, and any contract pertaining to the sale or purchase of electric energy or capacity.

(6) Avoided costs means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source.

(7) Interconnection costs means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources. Interconnection costs do not include any costs included in the calculation of avoided costs.

(8) Supplementary power means electric energy or capacity supplied by an electric utility, regularly used by a qualifying facility in addition to that which the facility generates itself.

(9) Back-up power means electric energy or capacity supplied by an electric utility to replace energy ordinarily generated by a facility's own generation equipment during an unscheduled outage of the facility.

(10) Interruptible power means electric energy or capacity supplied by an electric utility subject to interruption by the electric utility under specified conditions.

(11) Maintenance power means electric energy or capacity supplied by an electric utility during scheduled outages of the qualifying facility.

(12) Locational marginal price means the price for energy at a particular location as determined in a market defined in § 292.309(e), (f), or (g).

(13) Competitive Price means a Market Hub Price or a Combined Cycle Price.

(14) Market Hub Price means a price for as-delivered energy determined pursuant to § 292.304(b)(7)(i).

(15) Combined Cycle Price means a price for as-delivered energy determined pursuant to § 292.304(b)(7)(ii).

(16) Competitive Solicitation Price means a price for energy and/or capacity determined pursuant to § 292.304(b)(8).

(Public Utility Regulatory Policies Act of 1978, 16 U.S.C. 2601 et seq., Energy Supply and Environmental Coordination Act, 15 U.S.C. 791 et seq. Federal Power Act, 16 U.S.C. 792 et seq., Department of Energy Organization Act, 42 U.S.C. 7101 et seq., E.O. 12009, 42 FR 46267) [45 FR 12233, Feb. 25, 1980, as amended by Order 575, 60 FR 4856, Jan. 25, 1995; Order 872, 85 FR 54732, Sept. 2, 2020]
Notes of Decisions
Cited in 100 cases (5 in the last 5 years), 1981–2026 · leading case: Californians For Renewable Energy v. Ca Puco, 922 F.3d 929 (9th Cir. 2019).
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Californians For Renewable Energy v. Ca Puco, 922 F.3d 929 (9th Cir. 2019). · cites it 3× “" 18 C.F.R. § 292.101 (6). State regulatory agencies have the responsibility of calculating avoided cost, but FERC has set forth factors that states should consider.”
Pub. Serv. Co. of Oklahoma v. State Ex Rel. Oklahoma Corp. Comm'n, 2005 OK 47 (Okla. 2005). · cites it 4× “The FERC's definitions of terms used in implementing PURPA are found at 18 C.F.R. § 292.101 . The term "avoided costs" is defined as follows: "Avoided costs means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from…”
Winding Creek Solar LLC v. Carla Peterman, 932 F.3d 861 (9th Cir. 2019). · cites it 2× “18 C.F.R. § 292.101 (b)(6). FERC regulations give QFs two options for calculating avoided costs.”
Winding Creek Solar LLC v. Peevey, 293 F. Supp. 3d 980 (N.D. Cal. 2017). · cites it 2× “" 18 C.F.R. § 292.101 (b)(6). The regulations also require that qualifying facilities be given a choice in the pricing of the energy sales to the utilities.”
Exelon Wind 1, L.L.C. v. Donna Nelson, et a, 766 F.3d 380 (5th Cir. 2014). · cites it 2× “§§ 796 (17), 824a-3(a); 18 C.F.R. §§ 292.101 (b)(1), 292.203. While Congress sought to promote energy generation by Qualifying Facilities, it did not intend to do so at the expense of the American consumer.”
Sierra Club v. Pub. Serv. Comm'n of West Virginia, 827 S.E.2d 224 (W. Va. 2019). · cites it 2× “" 18 C.F.R. § 292.101 (b)(6) [1995]. Despite that definition, it remains a nebulous term.”
Am. Paper Inst., Inc. v. Am. Elec. Power Serv. Corp., 461 U.S. 402 (1983). “See 18 CFR §292.101 (b)(6) (1982) (the term full “avoided costs” used in the regulations is the equivalent of the term “incremental cost of alternative electric energy” used in § 210(d) of PURPA).”
N. Laramie Range All. v. Fed. Energy Regulatory Comm'n, 733 F.3d 1030 (10th Cir. 2013). · cites it 2× “§ 824a-3(a)-(b), (d); 18 C.F.R. §§ 292.101 (b)(6), 292.303(a), 292.”
Allco Renewable Energy Ltd. v. Massachusetts Elec. Co., 208 F. Supp. 3d 390 (D. Mass. 2016). · cites it 2× “” 18 C.F.R. § 292.101 (b)(6). In accordance with PURPA, FERC promulgated rules requiring electric utilities to purchase energy from QFs at a rate equal to the utility’s full avoided cost.”
Niagara Mohawk Power Corp. v. United States Dep't of Energy, 169 F.3d 16 (D.C. Cir. 1999). “See 18 CFR §§ 292.101 (b)(1), 292.203(b). The utility must pay for the power at a rate no greater than its “avoided cost” — the cost it would incur to generate an equivalent amount of power itself.”
Allied Chem. v. Niagara Mohawk Power Corp., 528 N.E.2d 153 (NY 1988). “"Avoided costs” is defined as "the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source” (18 CFR…”
Ellis-Hall Consultants v. Pub. Serv. Comm'n, 2016 UT 34 (Utah 2016). “§ 8242-3 ; 18 C.F.R. § 292.101 . The Commission establishes the methodology for determining avoided cost.”
Show all 100 citing cases →
— 18 C.F.R. § 292.101(b)(1) — 1 case
Fed. Deposit Ins. v. Niagara Mohawk Power Corp. (In re Megan-Racine Assocs., Inc.), 102 S. Ct. 671 (2d Cir. 1996).
— 18 C.F.R. § 292.101(b)(6) — 3 cases
Consumers Power Co. v. Pub. Serv. Comm'n, 472 N.W.2d 77 (Mich. Ct. App. 1991).
In re Consumers Energy Co., 307 Mich. App. 32 (Mich. Ct. App. 2014).
Apline Energy, LLC v. Matanuska Elec. Ass'n, 369 P.3d 245 (Alaska 2016).
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