Recent FERC Order Provides Important Guidance on Utility Curtailment of Renewable Generation
By BILL DEGRANDIS & STEPHEN SNYDER
Curtailment of renewable energy resources has significant financial impacts for projects that only generate revenue when in operation. Do Federal Energy Regulatory Commission (“FERC”) regulations give utilities purchasing the output of renewable resources under Power Purchase Agreements (“PPA”) the right to curtail for reasons not specified in the PPAs? This Alert discusses a recent FERC case that addresses this issue and provides some practical considerations for PPAs in light of this case.