ELR Citation: 53 ELR 20029
No(s). 21-1126 (D.C. Cir. Feb 14, 2023)

The D.C. Circuit, 2-1, denied electric utility companies' challenge to FERC's order granting a solar company's application for certification of its solar array and battery storage facility in Montana as a qualifying facility under the Public Utility Regulatory Policies Act (PURPA). The companies argued FERC exceeded its authority because the "power production capacity" of the solar facility was the total amount of direct current generated by the solar array and not the grid-usable alternating current (AC) produced by the inverters working in conjunction with the array and battery. The Commission argued the Act was ambiguous and that its interpretation—focusing on the amount of AC power being sent out to the grid—was reasonable. The court found FERC's determination that the facility is a qualifying facility with a production capacity no greater than 80 megawatts because its component parts, working together, produce no more than 80 megawatts of grid-usable AC power was reasonable, and supported by PURPA's text, structure, purpose, and legislative history. A solar industry group separately petitioned the court to review FERC's denial of its motion to intervene in adjudication of the company's application, but the court found the group lacked standing. It dismissed the group's petition and denied the electric utility companies' petition.