In 2012, a Utah jury found that after detailed negotiations and a series of counteroffers PacifiCorp “willfully and maliciously misappropriated a trade secret from USA Power” in order to build a power plant project in Mona, Utah without the project’s original developer. The jury awarded more than $133 million in damages. On May 16, 2016, the Utah Supreme Court affirmed the jury’s conclusions.
Oregon Commission Declines to Interfere with PacifiCorp’s Requests for Proposals
On May 19, 2016, the Oregon Public Utility Commission (Oregon Commission) denied Northwest and Intermountain Power Producers Coalition’s (NIPPC) petition for temporary rulemaking and investigation into PacifiCorp’s 2016 requests for proposals (RFP). NIPPC requested the Oregon Commission temporarily prohibit utilities from acquiring new renewable resources outside of the Oregon Commission’s competitive bidding guidelines. Although the Oregon Commission expressed sympathy for the concerns addressed in the petition, it concluded that it did not have the legal authority to prohibit utility ownership and declined to impose a partial remedy that might be seen as legitimizing PacifiCorp’s RFPs.
Washington Court Rejects PacifiCorp Rate Case Appeal
On April 27, 2016, the Washington Court of Appeals (Court) affirmed the Washington Utilities and Transportation Commission’s (Washington Commission) order in PacifiCorp’s 2013 general rate case. The Court affirmed the Washington Commission’s conclusions: 1) refusing to change the company’s cost allocation methodology; and 2) approving a hypothetical capital structure rather than the utility’s actual capital structure.
Oregon Commission Does Not Approve NW Natural’s CHP Program
On March 30, 2016, the Oregon Public Utility Commission (Oregon Commission) denied Northwest Natural Gas Company’s (NW Natural) proposed Combined Heat and Power greenhouse emission reduction program (CHP Program). While the CHP Program was not approved, the Oregon Commission indicated support for voluntary natural gas emission reduction programs and suggested an alternative program design that it would approve.
Oregon Commission Maintains 20 Year PURPA Contracts
On March 29, 2016, the Oregon Public Utility Commission (Oregon Commission) issued two orders resolving issues in PacifiCorp’s and Idaho Power’s separate proposals to lower the contract term and size thresholds for qualifying facilities (QF). The Oregon Commission retained the twenty-year contract term, with fifteen years of fixed prices. The Oregon Commission lowered the size threshold for published rates for solar QFs only to 3 megawatts (MW), but also allowed solar QFs to use standard contracts up to 10 MW in size. The Commission did not alter the size threshold for any other QFs.
PacifiCorp’s Oregon Avoided Cost Rate Reduction Rejected
On March 22, 2016, the Oregon Public Utility Commission (Oregon Commission) issued an order rejecting PacifiCorp’s avoided cost rate reduction. PacifiCorp claimed not to need new renewable resources, which the Oregon Commission did not believe because the recent amendments to the Oregon renewable portfolio standard will double the utility’s need to acquire new renewable resources. The Commission directed PacifiCorp to work with staff, and other interested parties to establish a process to review PacifiCorp’s avoided cost rates.
Avista’s Oregon Rates Increase
On March 15, 2016, the Oregon Public Utility Commission (Oregon Commission) approved an increase to Avista Corporation’s (Avista) revenue requirement by $4,460,000, representing a 4.9% rate increase. The Oregon Commission resolved a number of other important issues, including the Energy Trust of Oregon (ETO) taking over the utility’s energy efficiency program, a revenue-per-customer decoupling mechanism, a new capital structure and return on equity, the prudence of certain capital additions, and recovery of pension, medical, bonuses and other costs.
PGE’s Avoided Cost Rate Reduction Rejected
On January 26, 2016, the Oregon Public Utility Commission (the Oregon Commission) rejected Portland General Electric Company’s (PGE) proposed avoided cost rate reduction. PGE had proposed to significantly lower avoided cost rates outside of the established rules and processes. The Oregon Commission chastised PGE for makings its procedurally incorrect filing, but urged the utility to re-file and have its avoided cost rates properly evaluated.
Utah Commission Maintains Long-Term QF Contracts
On January 7, 2016, the Utah Public Service Commission (the Utah Commission) issued an order rejecting PacifiCorp’s (dba Rocky Mountain Power) proposal to shorten the qualifying facility (QF) contract term from twenty to three years. The Commission instead lowered the contract term to fifteen years. The order is a victory for non-utility owned renewable energy generators in Utah.
Oregon Commission Approves PacifiCorp’s Direct Access and Power Cost Filing
On December 11, 2015, the Oregon Public Utility Commission (Oregon Commission) issued its final order approving PacifiCorp’s Oregon power costs and direct access program in their entirety. The order will result in a small rate increase and no changes to PacifiCorp’s direct access program, which has low participation levels.