On April 24, 2019, the Ninth Circuit Court of Appeals (Ninth Circuit) issued an opinion regarding the California Public Utilities Commission’s (“California Commission”) failure to properly implement the Public Utility Regulatory Policies Act (PURPA). Specifically, the Ninth Circuit held that the avoided cost price paid to a qualifying facility (QF) cannot be based on energy sources that do not meet California’s Renewable Portfolio Standard (RPS), if the state has an RPS and the utility is using the QF’s energy to meet the RPS.
Montana District Court Finds that Public Service Commission Acted Arbitrarily and Unreasonably
On April 3, 2019, a Montana District Court Judge, Judge Manley, issued an order reversing the Montana Public Service Commission’s (“Montana Commission”) orders 7500c and 7500d that cut Public Utility Regulatory Policies Act (“PURPA”) standard avoided cost prices and contract lengths for qualifying facilities (“QFs”) offered by Montana utility NorthWestern Energy (“NorthWestern”).
Oregon Commission Provides Large Customers New Option to Purchase Green Energy
On March 5, 2019, the Oregon Public Utility Commission (Oregon Commission) issued Order No. 19-075 approving the implementation of a voluntary renewable energy tariff (VRET) by Portland General Electric Company (PGE). PGE’s proposed VRET allows ratepayers to purchase additional or all renewable energy from either their utility or an independent power producer.
PGE Direct Access Status Quo Retained
On December 18, 2018, the Oregon Public Utility Commission (Oregon Commission) issued its final order resolving Portland General Electric Company’s (PGE’s) most recent general rate case. The Oregon Commission resolved numerous issues related to PGE’s overall customer rates, and adopted several different stipulations that the rate case parties had reached on various topics, allowing PGE a rate increase of 1.8 percent, rather than the 4.8 percent PGE originally requested. Importantly, the Oregon Commission maintained the status quo for PGE’s modestly successful direct access program.
Oregon Commission Determines It Lacks Authority to Allow Utilities to Defer Costs Associated With Capital Projects
On October 29, 2018, the Oregon Public Utility Commission (Oregon Commission or OPUC) issued an order finding that it lacks the legal authority to allow utilities to defer, for later ratemaking consideration, the costs associated with their capital projects. The Oregon Commission’s decision represents a departure from its past practice, and also marked an instance of the Oregon Commission reaching a conclusion that was not advanced by any party to the proceeding.
Oregon Public Utility Commission Codifies PURPA Policies
On October 29, 2018, the Oregon Public Utility Commission (Oregon Commission) issued modifications to its rules governing a utility’s purchase of power from qualifying facilities (QFs) under Oregon’s implementation of the Public Utility Regulatory Policies Act of 1978 (PURPA). These rules were codified in the Oregon Commission’s rules after they were published by the Oregon Secretary of State on November 2, 2018. The final rules are the culmination of a three-year old Petition for Rulemaking filed by Obsidian Renewables, LLC in November 2015.
Oregon PUC Approves PGE Storage Pilot
On August 13, 2018, the Oregon Public Utility Commission (Oregon Commission) adopted a stipulation outlining an agreed approach to the development of five energy storage projects by Portland General Electric Company (PGE). The Oregon Commission concluded that PGE’s proposed structure for PGE’s Coffee Creek Request for Proposal (RFP) is reasonable; however, the Commission stated that it would require PGE to review ownership issues as part of future filings on the Coffee Creek project.
Oregon Commission Denies Pre-Operational QF Capacity Changes
On August 2, 2018, the Oregon Public Utility Commission (Commission) issued an order denying three qualifying facilities (QFs) under the Public Utility Regulatory Policy Act of 1978 (PURPA) the ability to change their nameplate capacity after contract execution but prior to commencing commercial operations. The Commission interpreted the language in Portland General Electric Company’s (PGE’s) standard power purchase agreement as prohibitive of either an increase or decrease to nameplate capacity prior to commercial operation.
Montana Commission Issues Final Rule on Legally Enforceable Obligations
On July 10, 2018, the Montana Public Service Commission issued a final rule establishing the criteria for forming a legally enforceable obligation (LEO) under the Public Utility Regulatory Policy Act of 1978 (PURPA).
Oregon and Idaho PUCs Issue Contradictory Orders on the Idaho Power Gas Price Forecasts
On May 16, 2018, the Idaho Public Utilities Commission (Idaho Commission) rejected Idaho Power Company’s (Idaho Power) proposal to use a low natural gas forecast as the basis to set avoided cost rates paid to qualifying facilities (QFs). On May 23, 2018, the Oregon Public Utility Commission (Oregon Commission) reached the opposite conclusion and allowed Idaho Power to use the same low natural gas price forecast. In Idaho, Idaho Power was required to use a more business as usual gas price forecast, which predicts higher natural gas prices and results in higher prices paid to QFs.