OPUC Adopts New Rules Related to Resource Adequacy

On May 8, 2024, the Oregon Public Utility Commission (Commission) issued Order No. 24-133 in Docket No. AR 660 adopting rules related to resource adequacy requirements for regulated entities in Oregon.  This rulemaking docket stemmed from Docket No. UM 2143 that developed draft rules related to resource adequacy requirements for investor-owned utilities as well as electricity service suppliers that sell power at retail under Oregon’s direct access program. There were several rounds of workshops and comments in UM 2143 and AR 660.

The rules are comprehensive and cover a wide variety of topics including creation of an Oregon-specific resource adequacy compliance program that is complementary to the Western Resource Adequacy Program (WRAP), resource adequacy planning requirements, and access to resource adequacy data. The resource adequacy rules are designed to incentivize participation in WRAP by requiring electric companies and electric service suppliers to participate in WRAP or the more stringent state resource adequacy program for compliance. Due to the forward showing transmission requirement with either compliance option that electric service suppliers have historically not needed, electric service suppliers proposed two alternatives: a capacity backstop charge or a request for offers process to allow for procurement of resource adequacy products from utilities. The Commission declined to adopt either alternative but adjusted the penalty provisions to signal flexibility while entities transition into this new regional resource adequacy regime with constrained access to resources and transmission.

Sanger Law, PC represented the Northwest & Intermountain Power Producers Coalition (NIPPC) in this proceeding.

NIPPC represents electricity market participants in the Pacific Northwest, including independent power producers, electricity service suppliers, and transmission companies. NIPPC is committed to facilitating cost-effective electricity sales, offering consumers choices in their energy supply, and advancing fair, competitive power markets.

These materials are intended to as informational and are not to be considered legal advice or legal opinion, nor do they create a lawyer-client relationship. Information included about previous case results does not assure a similar future result.