12-21-2009, 01:09 PM
quote:I'm familiar with the PURPA. Where in the PPA (and all subsequent amendments) does it mention anything about the contract pricing being under PURPA? In 1993, authority over PURPA had fallen on the States to implement if necessary. There was never any need to implement PURPA since there was already an agreement to buy the power. The cost could have been anything everyone agreed upon.
Originally posted by Del Pranke
It is called avoided oil costs. It is a federal program to ENCOURAGE alternative energy plans. In essence, Helco HAS to pay Puna Geothermal the same price as if the energy they are producing is made from fossil fuel. Helco doesn't really care, they are guaranteed a profit from the PUC. Puna geothermal doesn't care, they make more money.
Avoided cost is not a federal program, its a terminology use in energy as you pointed out. So it will appear in any energy anything talking about cost structures. Just because it was in the PURPA doesn’t mean the Act was applicable or used in this case. Avoided cost is also part of HAC. So was it the feds or was it the state? Follow the money and you’ll see whose hands were in the pot.