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.
Oregon Supreme Court Affirms OPUC Decision on Trojan Refunds
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.