The PUC in February decreased the timeline for some PURPA
contracts from the previously set 20 years to five years.
Policy Act (120) amended PURPA
in 2005, mandating that each electric
was a prominent part of a larger movement in the 1970s to stimulate competition in markets traditionally considered natural monopolies.
With no new contracts, biomass-derived electricity appears to have less appeal to California utilities than it once did, when PURPA
One wood-using plant with a PURPA
contract was not surveyed because the plant burned mostly coal.
provides an exemption from FPA price regulation but applies other constraints.
18) To that end, PURPA
provided for small power production
The pricing structure was also overhauled so rates were tied to the cost of production and varied by energy source--a key point of distinction from PURPA
marks the point at which "the window to competition opened" (46) within the electricity industry, this competition did not immediately benefit the consumer.
California's experience notwithstanding, PURPA
was sufficiently successful in producing reliable, competitively priced energy that the Energy Policy Act of 1992 (EPAct) opened the generation market further to permit non-utility generators to enter the wholesale market on a competitive, rather than cost-of-service basis.
These arguments, a perception of success in other deregulated utility sectors, and a desire to diversify energy sources led the federal government to start the process of deregulation at the wholesale level of the generation business with passage of the National Energy Policy Act of 1992, which went far beyond PURPA
in allowing for independent power generation.
forced those utilities to let small, independent nonutility generators sell energy to other producers over the transmission grid.