Public Utility Regulatory Policies Act (PURPA)

The Public Utility Regulatory Policies Act (PURPA), enacted in 1978, aims to promote energy efficiency and renewable energy by encouraging small-scale and independent power producers. It requires utilities to purchase power from qualifying renewable and cogeneration facilities at fair rates, fostering competition and reducing reliance on traditional fossil fuels. PURPA also helps prevent excessive utility monopoly control, supports cleaner energy sources, and promotes energy diversity. Overall, it’s designed to create a more sustainable, efficient, and competitive energy market by integrating alternative energy producers into the existing power grid.