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.
FERC Reforms Large Generator Interconnection Rules; Parties Seek Rehearing
On April 19, 2018, the Federal Energy Regulatory Commission (FERC) issued a final rule amending the pro forma Large Generator Interconnection Procedures (LGIP) and the Large Generator Interconnection Agreement (LGIA). The new rules represent the most significant changes to FERC’s generator interconnection process since 2003; however, FERC may revise some of the new rules because a number of parties sought rehearing which FERC granted on June 18, 2018.
Oregon Commission Requires PacifiCorp to Purchase Renewable Power from Large Independently Owned Generators
On April 19, 2018, the Oregon Public Utility Commission (Oregon PUC) rejected PacifiCorp’s proposed methodology for setting the avoided cost rates for larger qualifying facilities (QF), and required PacifiCorp to use a methodology that is more favorable to renewable QFs.
Oregon PUC Approves PGE’s Transportation Electrification Program
On February 16, 2018, the Oregon Public Utility Commission (Oregon Commission) adopted an opposed settlement and allowed Portland General Electric Company (PGE) to undertake three pilot programs designed to accelerate transportation electrification, including increased PGE ownership of charging stations. The Oregon Commission, however, modified provisions in the stipulation addressing future meetings and processes related to developing specific learnings from PGE’s pilot programs to allow broader participation.
Oregon PUC Exercises Primary Jurisdiction Over Executed PURPA Contract
On January 25, 2018, the Oregon Public Utility Commission (Oregon Commission) elected to take jurisdiction over a contract dispute between a qualifying facility (QF) Pacific Northwest Solar (PNW Solar) and Portland General Electric Company (PGE). The Oregon Commission became one of the only state agencies to conclude that it should resolve post-contract execution decisions and breaks from almost forty years of Oregon court case law in which QF contract disputes were resolved by the courts rather than an administrative agency.