Certified Energy Manager Practice Exam

What does the Public Utility Regulatory Policies Act (PURPA) do?

1. Encourages and facilitates energy cogeneration

2. Regulates the pricing of public utilities

3. Monitors the emissions of power plants

4. Reduces energy consumption in commercial buildings

The correct answer is: Encourages and facilitates energy cogeneration

The Public Utility Regulatory Policies Act (PURPA) was established to promote energy efficiency and the development of renewable energy sources, particularly cogeneration and small power production. By encouraging and facilitating energy cogeneration, PURPA aims to support the generation of energy from more efficient and sustainable sources. Cogeneration refers to the simultaneous production of electricity and useful heat from the same energy source, which enhances overall efficiency and reduces environmental impact. This act also seeks to allow non-utility generators to sell their electricity to utilities, promoting competition and diversifying the energy market. By creating financial incentives for alternative energy production methods, PURPA plays a vital role in transforming the energy landscape towards more sustainable practices. While regulating the pricing of public utilities, monitoring emissions, and reducing energy consumption in commercial buildings are significant aspects of energy management and regulation, they do not directly align with the primary intent and objectives of PURPA. Instead, PURPA specifically focuses on facilitating advancements and encouraging investments in cogeneration and renewable resources.