Scott Johnson Quoted in Commercial Property Executive on Impact of FERC Rule Change on Renewable Prices
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Commercial Property Executive has quoted Akin Gump energy regulation, markets and enforcement counsel Scott Johnson in the article “How a Rule Change Could Affect Renewable Prices.” The article examines a rule change by the Federal Energy Regulatory Commission that would revise its regulation of the Public Utility Regulatory Policies Act (PURPA), a law intended to promote energy conservation as well as greater use of renewable energy.
The article reports that the proposed changes are the first comprehensive review of PURPA regulations since they were enacted nearly 40 years ago. According to Johnson, the idea behind the reforms is that they would cause states to be able to “set (qualifying facilities) rates on a variable basis rather than a fixed-basis and over time the variable cost structure ends up being lower than the utility would have paid for a fixed-price long-term contract.”
Despite environmental concerns, Johnson suggested that “utility costs and end-use consumer costs could decrease in a lot of markets.” Ultimately, he added, “it depends on what part of the country you’re in, what kind of project it is, how the deal is structured, and that sort of thing.”
For more on this topic, click here to read a blog post that Johnson wrote for AG Speaking Energy.