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Recent FERC Order Provides Important Guidance on Utility Curtailment of Renewable Generation

August 26, 2013

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.