On October 4, 2014, the Oregon Supreme Court issued a decision that affirmed an order by the Oregon Public Utility Commission (Oregon Commission) requiring Portland General Electric Company (PGE) to refund amounts to its customers. Some of PGE’s customers and ratepayer advocates challenged the Oregon Commission’s decision on the grounds that the refunds to customers were insufficient.
Ninth Circuit Remands DSI Lookback to BPA
On September 18, 2014, the federal Ninth Circuit Court of Appeals held that Bonneville Power Administration’s (BPA) decision not to seek a refund of some of the amounts unlawfully paid to Alcoa could be arbitrary, capricious, or an abuse of discretion. In a 2-1 decision, the appellate court remanded the matter back to BPA to more carefully consider whether BPA should seek a partial refund from Alcoa. The Ninth Circuit also concluded that BPA has no general constitutional or statutory duty to seek a refund any time it makes an unlawful payment, and that BPA reasonably explained why it did not seek a refund from Port Townsend Paper. A third judge concurred with most of the ruling, but would have directed BPA to consider seeking larger refunds from Alcoa.
WUTC Requires PSE to Credit Proceeds from Jefferson PUD Sale to Customers
On September 11, 2014, the Washington Utilities and Transportation Commission (Washington Commission) ordered Puget Sound Energy (PSE) to credit ratepayers about $53 million. This credit was related to the proceeds of the sale of PSE’s assets to the Public Utility District No. 1 of Jefferson County (Jefferson PUD).
Fifth Circuit Limits PURPA Wind Sales
On September 8, 2014, the federal Fifth Circuit Court of Appeals issued an opinion that may make it more difficult for certain qualifying facilities (QFs) to sell power to electric utilities. The two-judge majority concluded that wind generation facilities owned by Exelon could not sell power pursuant to a “legally enforceable obligation” to Southwestern Public Service Corp. A legally enforceable obligation essentially means that the utility has a legal obligation to purchase power from the QF. The third judge issued a strongly worded dissent disagreeing with the majority’s holding and reasoning.
OPUC Partially Acknowledges PacifiCorp IRP
On July 8, 2014, the Oregon Public Utility Commission (Oregon Commission) issued an order regarding PacifiCorp’s long-term plan for its generation and transmission resources.
Washington Superior Court Reverses Part of PSE’s Energy Rate Plan
On July 25, 2014, Washington Superior Court Judge Carol Murphy issued a decision affirming most, but reversing a key part, of Puget Sound Energy’s (PSE) multi-year rate plan.
Oregon Passes Renewable Portfolio Standard Changes
On April 1, 2014, Oregon Governor John Kitzhaber signed HB 4126, which makes changes to Oregon’s renewable portfolio standard. A renewable portfolio standard is a law that requires a utility to purchase a specific amount from renewable resources. HB 4126 is a compromise that will make it easier for electric cooperatives to meet their renewable portfolio standard requirements as they increase their electric load. The law may also allow Oregon utilities to offer separate “green tariffs” to non-residential customers.
FERC Requires Utilities to Pay QFs for Capacity
On March 20, 2014, the Federal Energy Regulatory Commission (FERC) issued a declaratory order concluding that utilities must pay qualifying facilities (QF) for capacity as well as energy in sales pursuant to a legally enforceable obligation. A legally enforceable obligation is when a QF has the right to sell power to a utility at specific prices. FERC found that the Montana Public Service Commission’s (Montana Commission) rule requiring QFs to participate in a competitive bidding process to be paid for capacity failed to adequately compensate QFs. As it typically does, FERC declined to initiate an enforcement action against the Montana Commission, but the declaratory order allows a number of QFs to sue the commission in court.
Oregon Commission Reaffirms Many of Its PURPA Policies
On February 24, 2014, the Oregon Public Utility Commission (Oregon Commission) issued an order in the first part of its investigation into its policies related to contracting and pricing under the Oregon and federal Public Utility Regulatory Policies Act (PURPA). The Oregon Commission maintained most of its existing policies; however, it made a number of modifications that could impact the development of small power production facilities. The order completes the first phase of its comprehensive investigation, and the Commission will consider a number of other critical PURPA-related issues in a second phase in 2015.
FERC Rejects Proposal to Eliminate Small QF PURPA Purchase Obligation
On October 17, 2013, the Federal Energy Regulatory Commission (FERC) denied PPL Electric Utilities Corporation’s (PPL Electric) request to terminate its mandatory purchase obligation for a qualifying facility (QF) under 20 megawatts (MW).