The Public Utility Regulatory Policies Act of 1978 (PURPA) requires utilities to purchase excess energy and capacity produced by qualifying facilities (wind turbine, solar array, etc.) at a rate equal to the utility’s full avoided cost. Avoided cost is the incremental costs to the electric utility of electric energy or capacity, or both, but for the purchase from the qualifying facilities, the utility would generate itself or purchase from another source. Linn County Rural Electric Cooperative receives wholesale energy from Central Iowa Power Cooperative (CIPCO). Accordingly, our PURPA rate is provided by CIPCO.
CIPCO has determined that its avoided cost rate should be established based on actual market-based energy prices, given the market volatility and the unpredictability of forward energy and capacity prices. Using the actual energy prices will properly reflect the costs that CIPCO, and therefore our cooperative, are avoiding by purchasing from a qualifying facility. As market prices change, so does CIPCO’s PURPA rate. The rate Corridor Energy Cooperative pays or credits you for your excess energy each month will equal the calculated avoided cost rate for that month. This change became effective June 1, 2023, and will be reflected on your bill statements starting in July.