Minds → Energy & Utilities → Must electric utilities purchase power from qualifying facilities? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.
US FederalMust electric utilities purchase power from qualifying facilities? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.
Yes. Under 18 CFR § 292.303(a), each electric utility must purchase, in accordance with § 292.304, any energy and capacity made available from a qualifying facility—either directly or indirectly—unless exempted by § 292.309 or § 292.310. Purchases are mandatory when the qualifying facility makes power available, subject to the listed exemptions.
Last verified: 2026-08-28 · Sources checked: 1/1 resolving · Next scheduled review: 2026-11-26
Details / How it works
Section 292.303(a) imposes a mandatory purchase obligation on every electric utility. The utility must buy energy and capacity from a qualifying facility (QF) when that power is made available:
- Directly to the electric utility, or
- Indirectly in accordance with § 292.303(d) (transmission through another utility).
The procedures, rates, and conditions for the purchase are governed by § 292.304. The obligation is qualified—§ 292.309 and § 292.310 provide limited exemptions, and § 292.303(c)(2) bars interconnection (and thus the duty to purchase over that link) if it would subject the utility to public-utility regulation under Part II of the Federal Power Act.
Numbers & thresholds
| Item | Rule |
|---|---|
| Purchase obligation | Mandatory under § 292.303(a) |
| Pricing/procedure | Per § 292.304 |
| Purchase exemptions | §§ 292.309, 292.310 |
| Interconnection bar | § 292.303(c)(2) (Part II of the Federal Power Act) |
Exceptions & edge cases
- Exemption 1 (§ 292.309): relieves electric utilities from the purchase obligation in defined circumstances.
- Exemption 2 (§ 292.310): provides a separate, additional exemption from the purchase obligation.
- Part II of the Federal Power Act (§ 292.303(c)(2)): no interconnection is required if making the purchase/sale would push the utility into public-utility regulation under Part II of the FPA, which removes the practical path to purchase.
- Indirect supply (§ 292.303(d)): the utility may transmit the QF's power to another electric utility, which must then purchase it as if supplied directly.
Sources
- [1]U.S. Government Publishing Office / Federal Energy Regulatory Commission — 18 CFR 292.303 — Electric utility obligations to purchase and sell power from qualifying facilities · as of 2026-08-28
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