Understanding Utility Geothermal Small Power Production Facility

Definition & Meaning

A utility geothermal small power production facility is a type of energy production site that primarily uses geothermal energy. To qualify as such, more than 50 percent of the facility must be owned by either:

  • An electric utility or utilities.
  • An electric utility holding company or companies.
  • A company in which 50 percent or more of the voting securities are owned or controlled by an electric utility or holding company.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A geothermal power plant in California is owned 60 percent by a regional electric utility and 40 percent by a private investor. This facility qualifies as a utility geothermal small power production facility.

Example 2: A new geothermal facility is developed with 70 percent ownership by an electric utility holding company, making it eligible for specific regulatory benefits under federal law. (hypothetical example)

State-by-state differences

State Regulatory Notes
California Strong support for geothermal energy with specific state incentives.
Nevada Established regulatory framework encouraging geothermal development.
Oregon Incentives available for renewable energy, including geothermal.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Small Power Production Facility A facility that generates electricity using renewable resources. Broader category, not limited to geothermal energy.
Cogeneration Facility A facility that produces electricity and useful heat simultaneously. Focuses on combined heat and power, not solely on geothermal energy.

What to do if this term applies to you

If you are involved in the development or operation of a geothermal facility, ensure that you understand the ownership requirements and regulatory implications. Consider using legal templates from US Legal Forms to assist with compliance documentation. If your situation is complex, consulting a legal professional may be necessary to navigate the regulations effectively.

Quick facts

Attribute Details
Primary Energy Source Geothermal energy
Ownership Requirement More than 50 percent by specified entities
Regulatory Reference 18 CFR 292.202

Key takeaways