Eighth Circuit Upholds FERC Rule on Coop Avoided Cost Rates

The U.S. Court of Appeals for the Eighth Circuit has upheld the long-standing determination by the Federal Energy Regulatory Commission (FERC) that the avoided cost rate paid by a distribution cooperative for energy purchased from a qualifying cogeneration or small power production facility (QF) is the same as the avoided cost rate of the distribution coop’s generation and transmission (G&T) all-requirements supplier.

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