---
title: "Must electric utilities purchase power from qualifying facilities? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources."
canonical: https://www.m-i-n-d.ai/minds/energy-utilities/utility-obligation-purchase-qualifying-facilities
jurisdiction: "US Federal"
last_verified: 2026-08-28
license: CC BY 4.0 — https://creativecommons.org/licenses/by/4.0/
attribution: "Source: MIND (m-i-n-d.ai)"
---

# Must 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.

## 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 · https://www.ecfr.gov/current/title-18/section-292.303 · as of 2026-08-28