operative term subject to preemption. 1988 Pa. PUC LEXIS 101 at *1 See Scrubgrass I, (petition requesting approval of and at *9 (noting our approval in a prior rate recovery), order of the established while pending consideration at a later date of the regulatory rates out clause in the contract); and 659 A.2d at 1066 (acknowledging that West Penn, PURPA preempts the state from the established for the avoided costs at “chang[ing] rates the time of the agreements”). Under PURPA, we are obliged to approve the power purchase not price, necessarily the entire power purchase agreement. Nothing in federal law or regulations, or state law or regulations, requires approval of the contract. Petition of West Penn 1987 Pa. PUC LEXIS 153 at *9 Power Company: Re Milesburg Energy, Inc. (Milesburg); Petition of Pennsylvania Electric Company Requesting Current Approval of Rate Recovery, Under the Energy Cost Rate, for the Costs Proposed to be Paid Under an 1989 Pa. PUC LEXIS 69 at Amendment to an Agreement with XIOX Corporation et al., *11 (XIOX stated in our November 3, 1986 Order, we reviewed and Corporation) (“As approved only the rate terms set forth in the power purchase agreement between Penelec and XIOX. All other terms were extraneous to our Therefore, the approval[.]”). ALJ’s reliance on that point of distinction to ignore the holding that states lack jurisdiction to revisit a previouslyapproved QF purchase price is unsupported. We clearly approved the price for QF purchases applicable to the Duquesne PPAs when we approved Rider No. 18. The recommendation would have us ignore the fact that we approved ALJ’s the QF purchase price because it is memorialized in a state tariff. However, the rate in Rider No. 18 is incorporated as the operative price of the PPA by general reference to the tariff. NRG Midwest St. 1-S at 7. NRG does not dispute that to a private “parties contract may choose voluntarily to reference a tariff in their Brief of See agreement[.]” the NRG Companies in Opposition of Duquesne Light Petition for Company’s
operative term subject to preemption. See Scrubgrass I, 1988 Pa. PUC LEXIS 101 at *1 (petition requesting approval of rate recovery), and at *9 (noting our approval in a prior order of the rates established while pending consideration at a later date of the regulatory out clause in the contract); and West Penn, 659 A.2d at 1066 (acknowledging that PURPA preempts the state from “chang[ing] the rates established for the avoided costs at the time of the agreements”). Under PURPA, we are obliged to approve the power purchase price, not necessarily the entire power purchase agreement. Nothing in federal law or regulations, or state law or regulations, requires approval of the contract. Petition of West Penn Power Company: Re Milesburg Energy, Inc. 1987 Pa. PUC LEXIS 153 at *9 (Milesburg); Petition of Pennsylvania Electric Company Requesting Current Approval of Rate Recovery, Under the Energy Cost Rate, for the Costs Proposed to be Paid Under an Amendment to an Agreement with XIOX Corporation et al., 1989 Pa. PUC LEXIS 69 at *11 (XIOX Corporation) (“As stated in our November 3, 1986 Order, we reviewed and approved only the rate terms set forth in the power purchase agreement between Penelec and XIOX. All other terms were extraneous to our approval[.]”). Therefore, the ALJ’s reliance on that point of distinction to ignore the holding that states lack jurisdiction to revisit a previouslyapproved QF purchase price is unsupported. We clearly approved the price for QF purchases applicable to the Duquesne PPAs when we approved Rider No. 18. The ALJ’s recommendation would have us ignore the fact that we approved the QF purchase price because it is memorialized in a state tariff. However, the rate in Rider No. 18 is incorporated as the operative price of the PPA by general reference to the tariff. NRG Midwest St. 1-S at 7. NRG does not dispute that “parties to a private contract may choose voluntarily to reference a tariff in their agreement[.]” See Brief of the NRG Companies in Opposition of Duquesne Light Company’s Petition for
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