On December 15, 2016, the Washington Utilities and Transportation Commission (Washington Commission) rejected, in a 2-1 decision, Avista’s proposal to increase electric rates by 7.6 percent and natural gas rates by 2.8 percent. Rather than reduce the utility’s rate increase, the Washington Commission took the unusual action of simply rejecting in its entirety by concluding that Avista failed to carry its burden to show that its current rates are not fully sufficient to meet its needs.
FERC Protects QFs in the Interconnection Process
On December 15, 2016, the Federal Energy Regulatory Commission (FERC) issued a declaratory order finding that the Montana Public Service Commission’s (Montana Commission) legally enforceable obligation standard is inconsistent with the Public Utility Regulatory Policies Act (PURPA) and FERC’s PURPA regulations. FERC rejected the Montana Commission’s requirement that that a qualifying facility (QF) complete a facilities study or an interconnection agreement as a predicate for a legally enforceable obligation is contrary to PURPA.
Idaho PUC Re-affirms Two Year Contract Terms
On December 13, 2016, the Idaho Public Utilities Commission (Idaho Commission) issued an order approving a request by Idaho Power Company (Idaho Power) to affirm two-year contract terms and low capacity payments for larger qualifying facilities (QFs). The order applies to wind and solar QFs above 100 kilowatts and all other QFs above 10 megawatts (MW).
Utah Commission Requires PacifiCorp to Enter into QF Contract
On July 29, 2016, the Utah Public Service Commission (the Utah Commission) required PacifiCorp (dba Rocky Mountain Power) to enter into a twenty-year power purchase agreement at higher avoided cost rates than were existence when PacifiCorp ultimately decided to sign the contract.
Oregon Commission Hesitant to Approve Rushed RFP Processes
The Oregon Public Utility Commission (Commission) declined to approve both PacifiCorp and Portland General Electric (PGE) explored their options for acquiring new renewable resources. The utilities proposed expedited request for proposals (RFP) to take full advantage of the federal production tax credit (PTC), before it begins stepping down in 2017, to help meet the new renewable portfolio standards implemented by SB 1547. Neither utility will acquire new renewable resources at this time.
Wyoming Commission Declines to Modify PURPA Contracts
On June 23, 2016, the Wyoming Public Service Commission (Wyoming Commission) denied a request from PacifiCorp, dba Rocky Mountain Power, for authority to modify its Public Utility Regulatory Policies Act (PURPA) contracts with qualifying facilities (QF). PacifiCorp attempted to reduce the maximum contract term of prospective power purchase agreements (PPA) from 20 to three years and to modify its avoided cost calculation method to include all active QF projects in its pricing queue. The Wyoming Commission determined that PacifiCorp failed to meet its burden to show its proposed modifications were reasonable, would solve the alleged problems, and were in the public interest of Wyoming customers.
Utah Affirms PacifiCorp Maliciously Misappropriated Developer’s Trade Secrets
In 2012, a Utah jury found that after detailed negotiations and a series of counteroffers PacifiCorp “willfully and maliciously misappropriated a trade secret from USA Power” in order to build a power plant project in Mona, Utah without the project’s original developer. The jury awarded more than $133 million in damages. On May 16, 2016, the Utah Supreme Court affirmed the jury’s conclusions.
Oregon Commission Declines to Interfere with PacifiCorp’s Requests for Proposals
On May 19, 2016, the Oregon Public Utility Commission (Oregon Commission) denied Northwest and Intermountain Power Producers Coalition’s (NIPPC) petition for temporary rulemaking and investigation into PacifiCorp’s 2016 requests for proposals (RFP). NIPPC requested the Oregon Commission temporarily prohibit utilities from acquiring new renewable resources outside of the Oregon Commission’s competitive bidding guidelines. Although the Oregon Commission expressed sympathy for the concerns addressed in the petition, it concluded that it did not have the legal authority to prohibit utility ownership and declined to impose a partial remedy that might be seen as legitimizing PacifiCorp’s RFPs.
Washington Court Rejects PacifiCorp Rate Case Appeal
On April 27, 2016, the Washington Court of Appeals (Court) affirmed the Washington Utilities and Transportation Commission’s (Washington Commission) order in PacifiCorp’s 2013 general rate case. The Court affirmed the Washington Commission’s conclusions: 1) refusing to change the company’s cost allocation methodology; and 2) approving a hypothetical capital structure rather than the utility’s actual capital structure.
Oregon Commission Does Not Approve NW Natural’s CHP Program
On March 30, 2016, the Oregon Public Utility Commission (Oregon Commission) denied Northwest Natural Gas Company’s (NW Natural) proposed Combined Heat and Power greenhouse emission reduction program (CHP Program). While the CHP Program was not approved, the Oregon Commission indicated support for voluntary natural gas emission reduction programs and suggested an alternative program design that it would approve.