ELR Citation: 55 ELR 20130
No(s). 21-1126 (D.C. Cir. Sep 9, 2025)

In a split opinion, the D.C. Circuit denied petitions to review a FERC order certifying a Montana solar power facility as a "small power production facility" under the Public Utility Regulatory Policies Act (PURPA). A utility that would be required to buy the facility's power and a trade group representing electric utilities nationwide challenged the certification, arguing the facility's capacity exceeded the PURPA limit for "power production facility"—80 megawatts (MW)—because the solar array could generate up to 160 MW of raw direct current power. The appellate court denied the petitions, concluding FERC's interpretation that PURPA considers all facility subcomponents working together, not the solar array in isolation, was reasonable and entitled to Chevron deference. Petitioners sought review, and the Supreme Court vacated and remanded for further consideration in light of Loper Bright Enterprises v. Raimondo, 603 U.S. 369 (2024). On remand, the appellate court applied the statute without deference and concluded the maximum "power production capacity" was best read to refer to the amount of alternating current power that the facility could send out to the grid. Finding that the best view of PURPA supported FERC's order, it denied the petitions.