On January 23, 2026, the Oregon Public Utility Commission (the Oregon Commission) issued Order No. 26-021 in Docket UM 2000, concluding Phase II of the Commission’s Investigation into PURPA Implementation.
In the Order, the Oregon Commission addressed numerous components of the methodology for establishing avoided cost prices, and established Phase III of the Investigation to address a pricing update mechanism, standardized avoided cost workbooks across utilities, and details regarding renewal notices.
Key parties included the Renewable Energy Coalition, Northwest & Intermountain Power Producers Coalition, the Oregon Solar + Storage Industries Association, the Community Renewable Energy Association (QF Trade Groups), PacifiCorp, Portland General Electric Company, Idaho Power and the Oregon Commission Staff.
Highlights of the Phase II Order include:
- Approval of an RPS Adder, Small-Scale Renewable Adder, and Deliverability Adder. Supported by QF Trade Groups.
- The Commission did not approve the Community Benefits Adder, Distribution Deferral Credit Adder, WRAP ELCC Adder, or Wildfire Mitigation Adder that were supported by the QF Trade Groups.
- Elimination of separate price streams for Renewable Portfolio Standard (RPS) compliant and non-RPS compliant resources. One singular price stream for all Qualifying Facilities (QFs) with the provision of renewable energy credits (RECs) to utilities based on the attributes of the deferred resource. Supported by QF Trade Groups.
- Standard avoided cost prices available to all QFs 10 MW in size and under, including solar and solar + storage QF previously capped at 3 MW. Supported by QF Trade Groups.
- Standard pricing term in PPAs to remain capped at 15 years fixed price plus 5 years variable market price. Opposed by QF Trade Groups in favor of a 20-year fixed price term.
- Use of a last-in, tuned Electric Load Carrying Capability (ELCC) methodology for determining capacity contribution. Opposed by QF Trade Groups in favor of a first-in or first-in, tuned ELCC.
- Use of the least-cost capacity resource acquired in the utility’s most recent RFP determination of avoided capacity costs. Opposed by QF Trade Groups in favor of using third-party data.
- Five-year in ramp period for PGE and PacifiCorp, and five years for Idaho Power, beginning at scheduled commercial operations, for new QFs to receive capacity payments. QF Trade Groups recommended ramp-in begin at contract execution.
- Ability of renewing QFs to receive full capacity payments. Supported by QF Trade Groups.
- Binding one year notice for renewing QFs to receive capacity payments. Opposed by QF Trade Groups.
- Six by six pricing schedule replacing the heavy load hour and light load hour framework. QF Trade Groups opposed the utility-proposed 12 X 24 framework.
- Assumption of a 75 percent QF success rate. Supported by QF Trade Groups.
Phase III of the investigation is being conducted in Dockets AR 684 (PURPA Standard Avoided Costs, Price Adjustment Mechanism) and UM 2346 (PURPA Avoided Costs Standardized Workbooks).
Sanger Greene (Irion Sanger, Ellie Hardwick, and Diego Rivas) represented the Renewable Energy Coalition, Northwest & Intermountain Power Producers Coalition, and the Oregon Solar + Storage Industries Association, and Alyssa Forest also represented the Oregon Solar + Storage Industries Association.
The Renewable Energy Coalition is an organization whose members include irrigation districts, water districts, corporations, small utilities, and individuals who own and operate nearly fifty qualifying facilities – small renewable energy generators that operate under the federal Public Utility Regulatory Policies Act. The Coalition advocates to ensure that small renewable generation projects continue to make an important contribution to the Northwest’s energy future.
The Northwest & Intermountain Power Producers Coalition represents electricity market participants in the Pacific Northwest, including independent power producers, electricity service suppliers, and transmission companies. NIPPC is committed to facilitating cost-effective electricity sales, offering consumers choices in their energy supply, and advancing fair, competitive power markets. The Oregon Solar + Storage Industries Association advocates for clean, renewable, solar technologies. OSSIA members include businesses, non-profit groups, and other solar industry stakeholders.