News Analysis

 

 

According to the solar industry, a U.S. appeals court decision—and a Southern California Edison petition pending at the FERC—might put them out of business.

"If Edison were to prevail in this, it would have hugely negative implications for the solar operators."

That was Les Nelson, executive director of the California Solar Energy Industries Association, referring to Southern California Edison's June 30 petition for declaratory order asking the Federal Energy Regulatory Commission to apply to all small power production facilities (SPPFs) a 1999 federal appeals court decision involving a landfill SPPF. That decision disallowed the SPPF from burning natural gas to improve the efficiency of its "essential fixed assets" and still enjoy qualifying facility status under the Public Utility Regulatory Policies Act of 1978, thus calling into question FERC policy in place since the mid-'80s that had endorsed natural gas use for such purposes.

While Edison contends that in asking for across-the-board application of the decision it is not intending to fatally harm an entire segment of small power producers currently enjoying QF status, it nevertheless appeared braced for an onslaught of protest upon filing its petition. "SCE recognizes that this Petition is likely to be contested vigorously by those entities that have taken advantage of the Commission's essential fixed assets standard," it said in its original filing.