Order No. 872 probably deviated more in favor of QFs, from the highly controversial NOPR that spawned it, than some expected. Nonetheless, it still will trigger a deluge of rehearing requests largely from environmental, public policy, and QF interests. The degree to which load serving entities (LSEs) and some states, including Texas in particular, push back against some of their losses will be interesting to watch. Depending on November’s election results, we may see a very quick rehearing order or a slow rehearing process, by which time some state commissions likely will have revamped their PURPA programs. Almost certainly, precautionary petitions for review will be filed as soon as the inevitable tolling order is dry, in light of Allegheny. In any case, how Order No. 872 is implemented by the states (“states” includes local regulatory authorities) and FERC will play an important role in determining how significant the Final Rule will prove to be. In an initial series of posts, this blog explores several Order No. 872 topics. These posts are intended as commentary, not summaries.
