On November 25, 2025, the Oregon Public Utility Commission (Oregon Commission) issued Order No. 25-474 in Docket No. UM 2404 waiving penalty rules for electricity service suppliers (ESSs) under the state resource adequacy program and directed Oregon Commission Staff to open an informal rulemaking or investigation docket to consider amendments to the Oregon Commission’s resource adequacy rules.
The Northwest & Intermountain Mountain Power Producers Coalition (NIPPC) filed a motion to the Oregon Commission asking the Commission to adopt a penalty framework for the state program and implement an alternative compliance pathway for ESSs. NIPPC included a penalty straw proposal based on a similar framework used in the California Public Utilities Commission’s resource adequacy program. The straw proposal defines a good faith compliance, caps penalties when good faith efforted is demonstrated to meet resource adequacy requirements, bifurcates capacity and transmission penalties, and reduces penalties when deficiencies are cured by the 45th day prior to the month of the deficiency. Regarding alternative compliance pathways for ESSs, NIPPC recommended a capacity backstop charge paid by direct access customers to a utility or requiring the utilities to hold regularly scheduled requests for offers RFOs.
Several stakeholders responded to NIPPC’s motion including Calpine Energy Solutions, Brookfield Renewable Energy Marketing US, NewSun Energy, the Alliance of Western Energy Consumers, PacifiCorp, and Portland General Electric Company. Generally, stakeholders agreed that changes to the state resource adequacy program are necessary with other ESSs agreeing with NIPPC and the utilities disagreeing on timing, process, and substance. Ultimately, Oregon Commission Staff declined to recommend a specific penalty framework, but recommended penalties be waived for ESSs for the next state program compliance period and to conduct an investigation of the rules for any necessary changes. The Oregon Commission adopted Staff’s recommendation.
Sanger Greene, 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.
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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.
