The Public Utility Regulatory Policies Act (PURPA) of 1978 has become largely irrelevant in states that joined competitive wholesale electricity markets over the last two decades. However, it remains relevant outside of these markets, where PURPA often remains the only vehicle to promote competition and enable large consumers to self-supply. FERC’s pending Notice of Proposed Rulemaking on PURPA can fine-tune PURPA implementation and provide a pathway for states to avoid PURPA obligations through genuine competitive procurement.
