• FERC Issues Final Rules on QF Ownership and EPAct 2005 Standards
  • February 16, 2006 | Author: Michael S. Hindus
  • Law Firm: Pillsbury Winthrop Shaw Pittman LLP - San Francisco Office
  • On February 2, the Federal Energy Regulatory Commission (FERC) issued another set of rules implementing the Energy Policy Act of 2005 (EPAct 2005). The rules eliminate the restriction on utility ownership of qualifying cogeneration and small power production facilities (QFs) and provide standards for determining when a new cogeneration power plant has satisfied the EPAct 2005 requirements that 1) the thermal output is used in a "productive and beneficial" manner and 2) the "fundamental" use of a facility's electrical, thermal, chemical, and mechanical output be something other than to produce power for sales to a utility.