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.
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).
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 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.
Utah PSC Modifies Rocky Mountain Power’s Avoided Cost Methodology
On January 23, 2018, the Utah Public Service Commission (Utah Commission) adopted updates and revisions to Rocky Mountain Power’s avoided cost pricing methodologies for qualifying facility (QF) resources. Rocky Mountain Power will now offer renewable resources of the same kind or type a renewable avoided cost rate based on the costs of a similar or a “like” renewable resource.
Oregon PUC requires PGE to Offer 15 Year Fixed Price QF Contracts
On July 13, 2017, the Oregon Public Utility Commission (Oregon Commission) ordered PGE to begin allowing qualifying facilities (QF) the option to enter into power purchase agreements (PPA) with fifteen years of fixed prices. The order was consistent with the Oregon Commission’s previously articulated policy that Oregon utilities must offer PPAs with fixed-price periods of fifteen years.
D.C. Circuit Court Affirms FERC Order in Wind Farm Complaint Against PGE
On April 25, 2017, the U.S. Court of Appeals for the D.C. Circuit (Circuit Court) dismissed petitions for review by PáTu Wind Farm (PáTu) and Portland General Electric Company (PGE) appealing Federal Energy Regulatory Commission (FERC) orders requiring PGE to purchase the full net output delivered by PáTu and rejecting PáTu’s request that PGE accept the power through specific transmission arrangements called dynamic transfer.
Puget Sound Energy PURPA Rates Modified
On February 9, 2017, the Washington Utilities and Transportation Commission (Washington Commission) approved new avoided cost rates for Puget Sound Energy (PSE) after PSE abandoned its proposal to stop paying qualifying facilities (QFs) for capacity in certain years, and strongly encouraging PSE to enter into power purchase agreements (PPAs) with projects with delayed negotiations.
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.