The Public Utilities Commission of Texas has ruled that wind power does not qualify to be sold under long term contracts as a Qualifying Facility (QF) under the Public Utility Regulatory Policies Act (PURPA).  The problem: intermittency.   The precedent could inflict serious damage on the growth of wind and solar generation not only in the context of PURPA but in other policy and market contexts.  The Texas ruling has been challenged by six subsidiaries of John Deere Renewables.

The  companies allege in a filing before the Federal Energy Regulatory Commission that the Texas PUC ruling is violating PURPA and contrary to FERC’s regulations implementing PURPA. FERC is currently considering an enforcement action pre-empting the Texas decision or issuing a declaratory order finding that the state regulators’ ruling is contrary to FERC’s regulations implementing PURPA.