Yesterday FERC told owners of qualifying facilities (QF) larger than 1 MW that if they want the reduced regulatory requirements associated with QF status, they must either (i) file FERC Form 556 or (ii) have FERC grant certification. QF facilities are subject to reduced regulatory requirements, including, for QFs under 20 MWs, no requirement to have a rate on file at FERC, e.g., FERC market-based rate authority, prior to making sales for resale.

But while an entity may meet the technical requirements of a QF, it is not a QF for purposes of receiving these reduced regulatory requirements, until the requisite filings have been made. IGS ORIX Solar 1, LLC, Docket No. EL18-24, et. al. The solar facilities in question met the technical requirements for being a QF. The requisite filings, however, were not made. After discovering their failure to file, the QF owners asked FERC to waive their failure to file so they did not have to refund monies earned from sales without having a rate on file.

FERC said no. FERC reiterated “[t]he filing requirement [to be a QF] is a substantive and important criterion for QF status” that “must be followed.”

Bob Fallon, Engleman Fallon, PLLC, 202 464-1331, rfallon@www.efenergylaw.com