QUALIFYING FACILITY

QFs are non-utility power producers that often generate electricity using renewable and alternative resources, such as hydro, wind, solar, geothermal or biomass (solid waste). QFs must meet certain operating, efficiency, and fuel-use standards set forth by the Federal Energy Regulatory Commission (FERC). If they meet these FERC standards, utilities must buy power from them. QFs usually have long-term contracts with utilities for the purchase of this power, which is among the utility's highest-priced resources.