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Washington, D.C. – “The DOE applauds and supports FERC’s action today on proposed regulatory reforms. Given the changes in U.S. energy production capabilities, regulatory revisions have been long overdue. Today, the Commission is proposing much needed, commonsense reforms that better reflect today’s competitive wholesale markets and availability of plentiful, affordable energy supplies from a diversity of sources.” – Assistant Secretary Bruce J. Walker, Office of Electricity.

Background – The Public Utility Regulatory Policies Act (PURPA) has been in existence since 1978. Through this notice of proposed rulemaking, the Commission is providing state regulatory authorities much needed flexibility in setting variable prices for contracts under PURPA to ensure that consumers continue to benefit from lower energy prices. Congress recognized in the Energy Policy Act of 2005 that PURPA should be reviewed periodically to reflect changes in the energy markets, and with this action, the Commission is seeking input on how its regulations should objectively reflect today’s new technologies, abundance of competitively priced energy supplies, and the needs of consumers.


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