FERC Requires Refunds For Late QF Recertification

On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued Branch Street Solar Partners, LLC et al., 194 FERC ¶ 61,124 (2026) rejecting the refund reports filed in connection with the late filing of recertifications of qualifying facility (QF) status by certain affiliated companies to reflect a change in upstream ownership. FERC's rearticulation of QF recertification timing requirements and consequences for late QF recertifications has broad and substantial implications for all QF owners.

Among other things, QF status provides various exemptions from Federal Power Act (FPA) requirements, including, importantly, certain exemptions from the requirement to have a rate on file for wholesale sales of power under FPA § 205. QF status, however, is premised on the QF obtaining and maintaining QF status. FERC has previously found that material changes to information reported in a QF certification triggers recertification. The QFs at issue in the order here