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The Public Utility Regulatory Policies Act (PURPA) was enacted in 1978 as part of President Carter’s response to the oil embargo. A key purpose of PURPA was to encourage the development of cogeneration and renewable energy facilities in the United States. In addition, as stated in the law, PURPA was to encourage 1) the conservation of energy supplied by electric utilities; 2) optimal efficiency of electric utility facilities and resources, and 3) equitable rates for electric consumers.
The law has been amended several times, notably by the Energy Policy Act of 1992 and most recently by the Energy Policy Act of 2005 (EPAct 2005). EPAct 2005 was signed by President Bush on August 8, 2005. It amends Section 111(d) of PURPA to require utilities to consider, and make a determination about whether it is appropriate to implement, five new federal standards. These federal standards are:

1) net metering (EPAct Section 1251)
2) fuel diversity (EPAct Section 1251)
3) fossil fuel generation efficiency (EPAct Section 1251)
4) time-based metering and communications (EPAct Section 1252)
5) interconnection (EPAct Section 1254)

By law, electric utilities must begin a process to consider these standards with a set timeframe. The Board of Commissioners was required to begin consideration of two of these standards (time-based metering/communications and interconnection) by August 8, 2006 and complete consideration by August 7, 2007. For the remaining standards, the Board of Commissioners must begin consideration by August 8, 2007 and complete consideration by August 8, 2008.   The District may decide to adopt, not adopt, or adopt in part these standards.

Chelan PUD considered three standards in 2006 and initiated consideration of the final two standards in August 2007.  To view information on the current consideration process for the fuel source diversity standard and the fossil fuel efficiency standard, click here or on the Fuel Source Diversity link in the Quick Links box at right.  To review information detailing the consideration and determination process completed in 2006 for the net metering, interconnection, and time-based rate standards, click here or on the appropriate link in the Quick Links box at right.