Public Utility Regulatory Policies Act Of 1978 Purpa PDF Download

The Public Utility Regulatory Policies Act of 1978 (PURPA) requires that the Federal Energy Regulatory Commission collect various data on costs of service from utilities. The exact methodology of collection was left largely up to FERC. In this paper we make some specific recommendations on the way this data collection activity should be arranged. In view of the costs of collecting, storing, and disseminating large amounts of data, we recommend that only demonstratably useful data is collected. Further, FERC should consider sampling techniques in order that unnecessary costs are not imposed on utilities. In addition, the possibility of synchronizing these data collection activities with ordinary rate hearings should not be overlooked. We recommend that careful consideration be given to the need for collecting much of the traditional accounting cost categories. The intent of PURPA in Sec. 115 (a)(2) seems to definitely emphasize the need for economically based marginal costs information. Marginal cost information is difficult to collect in a standardized form and careful analysis of the methodology and accuracy of the collected data will be required. It is this difficulty that makes collection during regulatory hearings attractive as the assumptions behind the cost measurements can be scrutinized. Finally there would seem to be good reason for FERC to consider collecting interchange data that is consistent with the other data so that bulk power rates can also be analysed.