Section 210 of the Public Utilities Regulatory Policies Act of 1978 (PURPA) requires utilities to purchase energy and capacity from qualifying facilities (QFs), comprised of both cogeneration facilities and small power production facilities with renewables (hydro, wind or solar) as the primary energy source and with a capacity of 80 megawatts (MWs) or less.

The electricity industry has undergone a dramatic transformation and the development of competitive wholesale electricity markets, the abundance of natural gas, the thriving renewable energy sector and innovation by electric cooperatives have contributed to this transformation. Within this new paradigm, PURPA's requirements impose unnecessary regulatory and financial burdens on electric co-ops and their member-consumers.