On March 15, 2016, the Oregon Public Utility Commission (Oregon Commission) approved an increase to Avista Corporation’s (Avista) revenue requirement by $4,460,000, representing a 4.9% rate increase. The Oregon Commission resolved a number of other important issues, including the Energy Trust of Oregon (ETO) taking over the utility’s energy efficiency program, a revenue-per-customer decoupling mechanism, a new capital structure and return on equity, the prudence of certain capital additions, and recovery of pension, medical, bonuses and other costs.
PGE’s Avoided Cost Rate Reduction Rejected
On January 26, 2016, the Oregon Public Utility Commission (the Oregon Commission) rejected Portland General Electric Company’s (PGE) proposed avoided cost rate reduction. PGE had proposed to significantly lower avoided cost rates outside of the established rules and processes. The Oregon Commission chastised PGE for makings its procedurally incorrect filing, but urged the utility to re-file and have its avoided cost rates properly evaluated.
Oregon Commission Approves PacifiCorp’s Direct Access and Power Cost Filing
On December 11, 2015, the Oregon Public Utility Commission (Oregon Commission) issued its final order approving PacifiCorp’s Oregon power costs and direct access program in their entirety. The order will result in a small rate increase and no changes to PacifiCorp’s direct access program, which has low participation levels.
New PacifiCorp Oregon Direct Access Tariff
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.
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.
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.
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.
Oregon Commission Reaffirms Many of Its PURPA Policies
On February 24, 2014, the Oregon Public Utility Commission (Oregon Commission) issued an order in the first part of its investigation into its policies related to contracting and pricing under the Oregon and federal Public Utility Regulatory Policies Act (PURPA). The Oregon Commission maintained most of its existing policies; however, it made a number of modifications that could impact the development of small power production facilities. The order completes the first phase of its comprehensive investigation, and the Commission will consider a number of other critical PURPA-related issues in a second phase in 2015.
OPUC Declines to Investigate PGE’s Competitive Bidding Process
On September 20, 2013, the Oregon Public Utility Commission (Oregon Commission) declined to open a declaratory ruling proceeding or other investigation into Portland General Electric Company’s (PGE) competitive bidding processes. PGE conducted a controversial request for proposals (RFP) process in which PGE selected its own resources as the winning bids over the bids by independent third party power producers. PGE selected three of its own plants: 1) the Tucannon wind project with a 267 maximum megawatt (MW) capacity located in Columbia County, Washington; 2) the 440 MW capacity Carty natural gas generation facility near the company’s existing Boardman plant; and 3) the 220 MW capacity Port Westward II natural gas plant that will be adjacent to PGE’s existing Port Westward I natural gas plant.