On August 24, 2020, the Montana Supreme Court ruled against the Montana Public Service Commission’s (Montana Commission) actions to reduce avoided cost rates and shorten contract terms for power purchase agreements between the utilities and solar Qualifying Facilities (QFs). The ruling is a victory for renewable energy developers and advocates, as it upheld an integral piece of the Public Utility Regulatory Policy Act of 1978’s (PURPA) that encourages QF development.
Washington Commission Focuses on Protecting Customers During the COVID Pandemic in Puget Sound Energy Rate Case
On July 8, 2020, the Washington Utilities and Transportation Commission (Washington Commission) rejected Puget Sound Energy’s (PSE’s) proposed rate increases for electric and natural gas customers and instead authorized much smaller increases that effectively provided a less than one percent increase. The Washington Commission’s decision reflects the Washington Commission’s efforts to protect ratepayers during the COVID-19 pandemic.
Wyoming Commission Reduces PURPA Contract Terms and Changes PacifiCorp’s Avoided Cost Pricing Method
On June 23, 2020, the Wyoming Public Service Commission (Wyoming Commission) partially granted a request from PacifiCorp, dba Rocky Mount Power, for authority to modify its Public Utility Regulatory Policies Act (PURPA) contracts with qualifying facilities (QFs). Within the same proceeding, the Wyoming Commission approved PacifiCorp’s other proposed changes to its avoided cost pricing methodology.
Oregon PUC and PGE Allow Projects to Participate in Community Solar Program
On May 19, 2020, the Oregon Public Utility Commission (Oregon Commission) approved, in principle, a proposed tariff for allocating community solar program (CSP) costs across Portland General Electric Company’s (PGE’s) customer classes. In a public settlement agreement, with the Oregon Commission’s approval of its tariff, PGE agreed to allow solar projects that were parties to the settlement agreement to terminate each project’s pre-existing power purchase agreement (PPA) if so requested within 90 days of the Commission order and to sell their power in the CSP.
Washington UTC Approves Multiparty Settlement in Avista Rate Case
On March 25, 2020, the Washington Utilities and Transportation Commission (“UTC”) approved a multiparty settlement in Avista’s rate case. The decision will ultimately result in a rate increase, yet the Commission approved a number of refunds that will keep electric rates down this year, in light of the COVID-19 pandemic.
Oregon PUC Supports Competitive Markets in Revamping PGE’s New Load Direct Access Program
On January 7, 2020, the Oregon Public Utility Commission (Oregon Commission) ordered the Portland General Electric Company (PGE) to submit new tariffs that implement its Large New Load Direct Access (NLDA) program (Order No. 20-002). The new tariffs will go into effect on February 6, 2020.
Sanger Thompson PC is Now Sanger Law PC, Reflecting Mark Thompson’s Appointment to Serve as OPUC Commissioner
Sanger Thompson PC is now Sanger Law PC. The name change reflects that Mark Thompson, prior partner at the firm, has been appointed by Governor Kate Brown as a Commissioner at the Public Utility Commission of Oregon (OPUC). Mark joined the firm (previously also Sanger Law PC) in 2018, and advised clients on transactional and litigation matters on a variety of energy-related topics. With Mark’s departure to the OPUC, the firm is changing its name back to Sanger Law PC, and continues to provide the same breadth of services to clients on energy, regulation, and utility matters.
Although Sanger Law regrets not having Mark as a resource at the firm, we are excited that he will continue to serve the state and the various interests in the energy and utilities industry as a Commissioner.
Ninth Circuit Reaffirms PURPA’s Must-Purchase and Fixed Contract Price Requirements
On July 29, 2019, the Ninth Circuit released an opinion in Winding Creek Solar, LLC v. California Public Utility Commission (California Commission or CPUC), finding that the Public Utility Regulatory Policies Act (“PURPA”) preempted the CPUC’s “Renewable Market Adjusting Tariff” (Re-Mat) and “Standard Offer Contract” programs. Under PURPA, utilities are required to purchase any energy and capacity made available from a qualifying facility (QF) at the utility’s avoided cost, and the QF has the option to have the price it is paid for that energy and capacity determined either at the time of contracting or at the time of delivery.
Oregon Court of Appeals Reverses OPUC on PacifiCorp’s Direct Access Charge
On June 19, 2019, the Oregon Court of Appeals issued an opinion in Calpine Energy Solutions, LLC v. Oregon Public Utility Commission (Oregon Commission or OPUC), reversing the OPUC’s approval of PacifiCorp’s Transition Adjustment Mechanism (TAM). The core decision by the Court is that a state regulatory agency, like the Oregon Commission, must make its decision based on the evidence brought before it and not information or decisions from prior cases.
Montana District Court Reverses Public Service Commission on PURPA
On June 18, 2019, a Montana State District Court reversed the Montana Public Service Commission (Commission or MPSC), finding that MTSUN, a qualifying facility under the Public Utility Regulatory Policies Act (PURPA), was entitled to a 25-year contract to sell its energy and capacity to NorthWestern Energy. The case was heard before the same Judge that decided the QF-1 docket on April 2, 2019 and to a large degree the decision is the same.