Qualifying Facilities and PURPA
The Public Utilities Regulatory Policies Act of 1978 (“PURPA”) created an obligation for electric utilities to offer to purchase power from, and interconnect with, qualifying generation projects. In Arizona, PURPA is implemented through rules established by the Federal Energy Regulatory Commission (“FERC”) and the Arizona Corporation Commission (ACC). Qualifying Facilities (“QFs”) must meet certain criteria specified in the FERC regulations to obtain such treatment.
Inquiries about pricing and requests for power purchase agreements for QF purchases must be directed to PURPA@tep.com. Inquiries must include a completed “Preliminary Request for Information Form,” linked below, before processing. Pricing for QF purchases from facilities sized at 100 kW or less are established by an ACC approved tariff (see R-11). Pricing for larger facilities are negotiated based on TEP’s avoided costs.
QFs located in TEP's service area also will need to execute an interconnection agreement. QF interconnection requests are administered by the company's transmission services function. Learn more about interconnection process at TEP’s Generation Interconnection Services webpage.