Fifth Circuit Limits PURPA Wind Sales

On September 8, 2014, the federal Fifth Circuit Court of Appeals issued an opinion that may make it more difficult for certain qualifying facilities (QFs) to sell power to electric utilities.  The two-judge majority concluded that wind generation facilities owned by Exelon could not sell power pursuant to a “legally enforceable obligation” to Southwestern Public Service Corp.  A legally enforceable obligation essentially means that the utility has a legal obligation to purchase power from the QF.  The third judge issued a strongly worded dissent disagreeing with the majority’s holding and reasoning.