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.
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.
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.
Oregon Commission Maintains 20 Year PURPA Contracts
On March 29, 2016, the Oregon Public Utility Commission (Oregon Commission) issued two orders resolving issues in PacifiCorp’s and Idaho Power’s separate proposals to lower the contract term and size thresholds for qualifying facilities (QF). The Oregon Commission retained the twenty-year contract term, with fifteen years of fixed prices. The Oregon Commission lowered the size threshold for published rates for solar QFs only to 3 megawatts (MW), but also allowed solar QFs to use standard contracts up to 10 MW in size. The Commission did not alter the size threshold for any other QFs.
PacifiCorp’s Oregon Avoided Cost Rate Reduction Rejected
On March 22, 2016, the Oregon Public Utility Commission (Oregon Commission) issued an order rejecting PacifiCorp’s avoided cost rate reduction. PacifiCorp claimed not to need new renewable resources, which the Oregon Commission did not believe because the recent amendments to the Oregon renewable portfolio standard will double the utility’s need to acquire new renewable resources. The Commission directed PacifiCorp to work with staff, and other interested parties to establish a process to review PacifiCorp’s avoided cost rates.
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.
Utah Commission Maintains Long-Term QF Contracts
On January 7, 2016, the Utah Public Service Commission (the Utah Commission) issued an order rejecting PacifiCorp’s (dba Rocky Mountain Power) proposal to shorten the qualifying facility (QF) contract term from twenty to three years. The Commission instead lowered the contract term to fifteen years. The order is a victory for non-utility owned renewable energy generators in Utah.
Washington Commission Rejects PacifiCorp PURPA Change
On November 12, 2015, the Washington Utilities and Transportation Commission (the Washington Commission) issued its final order in PacifiCorp’s Washington avoided cost case. The Washington Commission rejected the company’s proposal to eliminate capacity payments. The Washington Commission concluded that some sort of capacity payment was warranted because PacifiCorp’s projected market prices did not reasonably account for the company’s full avoided costs.