On February 24, 2015, the Oregon Public Utility Commission (Oregon Commission) issued an order approving PacifiCorp’s five-year direct access opt-out tariff. All other parties to the case, including the Commission Staff, commercial and industrial customers, independent power producers, and energy marketers opposed PacifiCorp’s proposal and supported an alternative five-year opt-out tariff. The five-year opt-out tariff was intended to provide PacifiCorp’s Oregon direct access eligible customers with a realistic opportunity to purchase power from non-utility energy marketers. The order, however, will likely maintain the status quo with minimal participation in PacifiCorp’s direct access program.
OPUC Rejects Avista Rate Case Settlement
On February 23, 2015, the Oregon Public Utility Commission (Oregon Commission) took the unusual step of rejecting an all-party settlement in Avista’s general rate case. The parties had agreed to reduce Avista’s $9.8 million (9.8% average) rate increase to $6.1 million (6.1% average), resolve a number of controversial issues, and allow Avista to increase rates early (March 1, 2015 rather than July 3, 2015). The Oregon Commission rejected the settlement because of concerns regarding a proposed early rate increase and implementation credit, the rate spread, and the customer count tracking mechanism.
FERC Sides with Oregon Wind Farm Against PGE
On January 22, 2015, the Federal Energy Regulatory Commission (FERC) issued an order that granted in part and dismissed in part a complaint filed by PáTu Wind Farm (PáTu) against Portland General Electric Company (PGE). FERC agreed with PaTu’s essential complaint that PGE may not refuse to accept PáTu’s net electric energy output that is delivered to PGE’s system. FERC also: 1) dismissed PáTu’s arguments that PGE violated FERC’s standards of conduct; and 2) concluded that PáTu should seek monetary reparations in court or before the Oregon Public Utility Commission (Oregon Commission) rather than FERC itself.
New Oregon Avoided Cost Rates and Contracts
The Oregon Public Utility Commission (Oregon Commission) has approved new standard contracts and rates for qualifying facilities (QFs) that sell their power to Portland General Electric Company (PGE), PacifiCorp, and Idaho Power Company (Idaho Power). These new rates and contracts are only available to QFs that have the right to sell power to utilities under the Oregon and federal Public Utility Regulatory Policies Act (PURPA) and that have a maximum output of 10 megawatts (MW) or lower. PGE’s new contracts and rates were approved on December 16, 2014, while PacifiCorp’s and Idaho Power’s were allowed to go into effect in August 2014. PGE’s and PacifiCorp’s avoided cost rates and contracts provide new options for eligible renewable energy QFs to sell their electricity to these utilities.
New Idaho Power Solar Contracts
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.