Due to the rapidly growing appetite for solar and other forms of renewable and alternative energy in the
U.S., developers, utilities and state energy regulators are seeking policy options that appropriately value
the locational benefits of distributed generation (DG). The federal Public Utilities Policy Regulatory
Act (PURPA) may provide a solution that supports greater DG development close to load, where DG
value is highest. This paper explores the benefits that could be quantified and incorporated into the
development of PURPA-based avoided cost rates to more accurately value the energy contribution of
distributed facilities that serve local load.