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FERC Issues RECs Ownership Ruling

October 2003 - On October 1, the Federal Energy Regulatory Commission (FERC) ruled that avoided cost contracts entered into by qualifying facilities (QFs) pursuant to the Public Utility Regulatory Policies Act (PURPA) do not convey renewable energy certificates (RECs) to the purchasing utility, unless there is an express provision in the contract to the contrary. In its order, FERC declared that: "While a state may decide that a sale of power at wholesale automatically transfers ownership of the state-created RECs, that requirement must find its authority in state law, not PURPA." The order was issued in response to a petition filed by several owners and operators of waste-to-energy plants.

FERC Order - Order Granting Petition for Declaratory Order, Issued October 1, 2003, Docket No. El03-133-000 (PDF 24 KB) Download Acrobat Reader

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