Californians for Renewable Energy v. California Public Utilities Commission, No. 17-55297 (9th Cir. 2019)
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Plaintiffs, small scale solar producers, filed suit alleging that CPUC's programs did not comply with the Public Utility Regulatory Policies Act (PURPA), because CPUC incorrectly defined the amount that PURPA requires utilities to pay qualifying facilities (QFs). The district court dismissed plaintiffs' claims for equitable damages and attorney fees, entering summary judgment for CPUC on the PURPA challenges.
The panel held that the district court erred in not interpreting FERC's regulations to require state utility commissions to consider whether a Renewables Portfolio Standard changed the calculation of avoided cost. Accordingly, the panel reversed as to this issue. The panel affirmed in all other respects, holding that utilities did not violate PURPA in not compensating QFs for Renewable Energy Credits and the Net Energy Metering Program did not violate PURPA's interconnection requirement. The panel also affirmed the dismissal of equitable damages and attorney fees claims.
Court Description: Energy Law The panel affirmed in part and reversed in part the district court’s judgment in favor of the California Public Utilities Commission on small-scale solar energy producers’ claims that the CPUC’s programs did not comply with the Public Utility Regulatory Policies Act and implementing regulations promulgated by the Federal Energy Regulatory Commission. Reversing the district court’s summary judgment in favor of CPUC, the panel held that PURPA requires utilities to purchase electricity directly from “qualifying facilities,” or “QFs,” meaning qualifying small power production facilities or cogeneration facilities, and to pay QFs at a rate equal to the utility’s “avoided cost.” In 2005, the Energy Policy Act eliminated the must-purchase obligations for any QF that FERC determined had nondiscriminatory access to particular markets. In 2011, FERC released California utilities from PURPA’s mandatory purchase obligations for QFs over 20 MW and established a presumption that the obligations would apply for QFs 20 MW or smaller, such as plaintiffs. PURPA also includes an interconnection requirement, obligating utilities to connect QFs to the power grid.
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