On November 12, 2015, the Washington Utilities and Transportation Commission (the Washington Commission) issued its final order in PacifiCorp’s Washington avoided cost case. The Washington Commission rejected the company’s proposal to eliminate capacity payments. The Washington Commission concluded that some sort of capacity payment was warranted because PacifiCorp’s projected market prices did not reasonably account for the company’s full avoided costs.
Idaho Commission Limits PURPA Contract Terms
On August 20, 2015, the Idaho Public Utilities Commission (Idaho Commission) issued an order shortening the contract term for certain new and renewing qualifying facilities (QF) to two years. The decision is a major loss for wind and solar QFs, and all projects sized 10 megawatts (MW) and above. Non-wind and solar QFs under 10 MWs will remain eligible for long term contracts at published avoided cost rates. It is likely that the Idaho Commission’s order will significantly reduce the development of new wind and solar in Idaho, which was experiencing record growth.
Ninth Circuit Rejects Challenge to FERC Decisions on BPA Oversupply
On August 10, 2015, the Ninth Circuit Court of Appeals (Ninth Circuit) rejected a challenge to the Federal Energy Regulatory Commission’s (FERC) decisions finding that Bonneville Power Administration’s (BPA) policies discriminated against wind generators. The Ninth Circuit did not address the merits of the appeal, but found that the BPA’s wholesale preference customers did not have statutory standing to challenge FERC’s decision.
WUTC Lowers PacifiCorp Rate Increase
On March 25, 2015, the Washington Utilities and Transportation Commission (Washington Commission) denied PacifiCorp’s $27.2 million (8.5% average) rate increase, and instead authorized the utility to increase rates $9.6 million (3.0% average). In reducing PacifiCorp’s proposed rate increase, the Washington Commission rejected a number of PacifiCorp’s efforts to re-litigate issues from the utility’s last general rate case that are currently being appealed to the Washington courts, denied recovery of deferred costs, and ordered the utility to file a power cost adjustment mechanism.
New PacifiCorp Oregon Direct Access Tariff
On February 24, 2015, the Oregon Public Utility Commission (Oregon Commission) issued an order approving PacifiCorp’s five-year direct access opt-out tariff. All other parties to the case, including the Commission Staff, commercial and industrial customers, independent power producers, and energy marketers opposed PacifiCorp’s proposal and supported an alternative five-year opt-out tariff. The five-year opt-out tariff was intended to provide PacifiCorp’s Oregon direct access eligible customers with a realistic opportunity to purchase power from non-utility energy marketers. The order, however, will likely maintain the status quo with minimal participation in PacifiCorp’s direct access program.
OPUC Rejects Avista Rate Case Settlement
On February 23, 2015, the Oregon Public Utility Commission (Oregon Commission) took the unusual step of rejecting an all-party settlement in Avista’s general rate case. The parties had agreed to reduce Avista’s $9.8 million (9.8% average) rate increase to $6.1 million (6.1% average), resolve a number of controversial issues, and allow Avista to increase rates early (March 1, 2015 rather than July 3, 2015). The Oregon Commission rejected the settlement because of concerns regarding a proposed early rate increase and implementation credit, the rate spread, and the customer count tracking mechanism.
FERC Sides with Oregon Wind Farm Against PGE
On January 22, 2015, the Federal Energy Regulatory Commission (FERC) issued an order that granted in part and dismissed in part a complaint filed by PáTu Wind Farm (PáTu) against Portland General Electric Company (PGE). FERC agreed with PaTu’s essential complaint that PGE may not refuse to accept PáTu’s net electric energy output that is delivered to PGE’s system. FERC also: 1) dismissed PáTu’s arguments that PGE violated FERC’s standards of conduct; and 2) concluded that PáTu should seek monetary reparations in court or before the Oregon Public Utility Commission (Oregon Commission) rather than FERC itself.
New Oregon Avoided Cost Rates and Contracts
The Oregon Public Utility Commission (Oregon Commission) has approved new standard contracts and rates for qualifying facilities (QFs) that sell their power to Portland General Electric Company (PGE), PacifiCorp, and Idaho Power Company (Idaho Power). These new rates and contracts are only available to QFs that have the right to sell power to utilities under the Oregon and federal Public Utility Regulatory Policies Act (PURPA) and that have a maximum output of 10 megawatts (MW) or lower. PGE’s new contracts and rates were approved on December 16, 2014, while PacifiCorp’s and Idaho Power’s were allowed to go into effect in August 2014. PGE’s and PacifiCorp’s avoided cost rates and contracts provide new options for eligible renewable energy QFs to sell their electricity to these utilities.
New Idaho Power Solar Contracts
Idaho Power Company (Idaho Power) has entered into contracts to purchase over 450 megawatts (MW) of solar capacity in Oregon and Idaho. The solar projects, if developed, would significantly increase Idaho Power’s supply of green power and make Idaho Power a regional leader in the acquisition of solar energy.
FERC Approves BPA Oversupply Management Protocol and Rates
On October 16, 2014, the Federal Energy Regulatory Commission (FERC) issued two orders accepting Bonneville Power Administration’s (BPA) controversial oversupply management protocol and oversupply rates. FERC accepted BPA’s filings as temporary solutions to address the problem of high levels of generation that exceeded the available end use consumer loads on BPA’s system. This is called “oversupply” because BPA has too much generation. FERC found that BPA’s policy to displace and compensate wind generators during oversupply events is equitable and results in comparability in the provision of transmission service.