Qualifying Facilities Conversion

A Qualifying Facility (QF) is a generating facility which meets the requirements for QF status under the Public Utility Regulatory Policies Act of 1978 (PURPA) and the Federal Energy Regulatory Commission (FERC) Regulations (18 C.F.R. Part 292), and meets certification and registration requirements for QF status.

In 1983, the California Public Utilities Commission (CPUC) encouraged QF development by establishing a “standard offer” power purchase contracts that utilities were required to accept from QFs. Today, about 200 legacy QF projects, representing about 4,500 megawatts of generating capacity (enough to serve 4 million homes) are currently on-line within SCE’s service territory.

The standard offer contracts of these legacy QFs are starting to reach the end of their terms, and as such, new power purchase agreements are replacing the original contracts for the projects that want to remain operating. The terms of the “standard offer” contracts that legacy QFs entered into contain provisions that provided for interconnection to SCE’s electric system. With the expiration of these contracts, the need to replace the terms of the interconnection services with a current interconnection agreement is evident.

In today’s market structure, new power purchase agreements do not contain terms for interconnection service as such service is typically provided under interconnection tariffs that did not exist when the original QF contracts were executed. Thus, SCE has the obligation to provide the owners of existing legacy QF contracts a mechanism to replace the original terms of interconnection with new interconnection agreements under the appropriate jurisdiction. The process of obtaining the new interconnection agreement for legacy QFs is known as a “QF conversion”, or simply a “conversion”.

If you are a QF owner that would like to renew your interconnection agreement, SCE's Grid Interconnection and Contract Development (GICD) team can help you manage the interconnection process. We recommend initiating the required steps for conversion approximately 12 months before you would expect to terminate your existing QF PPA.

DISCLAIMER: The guidelines in this section are provided with the intent to help SCE’s customers understand SCE’s Interconnection Procedures. However, in the case of discrepancies with SCE’s rules, such tariffs and regulations will prevail.