Oregon Commission Adopts Interim Solar+Storage Standard Rate in Docket No. UM 2000

On May 18, 2023, the Oregon Public Utility Commission (Commission) issued an order in Docket No. UM 2000 adopting an interim solar+storage standard avoided cost rate for qualifying facilities. The utilities are required to file the new avoided cost rates by July 31, 2023. 

Docket No. UM 2000 is a broad investigation into Public Utility and Regulatory Policies Act implementation, which was relaunched in November 2022. After scoping comments and workshops, Staff recommended starting with Phase 0 to establish an interim solar+storage standard avoided cost rate. After several workshops and rounds of comments, stakeholders were able to come close to agreement on an interim solar+storage rate. Commission Staff established a proposal, which the Commission adopted.

Solar resources up to 3 MW are eligible for the interim rate, which sets the capacity contribution for a solar+storage resource based on a loss of load probability or effective load carrying capacity for the expected generation and storage dispatch during premium peak hours. The premium peak hours are four hours per day per month that will vary by utility. The capacity payment for the resource will be a volumetric rate ($/MWh) for generation in the premium peak hours. The premium peak hours can change throughout the life of the contract but only after an Integrated Resource Plan (IRP) or IRP Update. Lastly, there is an initial 50 MW cap for each utility, excluding projects sized 100 kW or smaller, after which the interim rate will be re-examined to determine if any changes are needed. The utilities are expected to file the new avoided cost rates by July 31, 2023.

Sanger Law, PC represented the Northwest & Intermountain Power Producers Coalition (NIPPC) and the Renewable Energy Coalition (REC) 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.

REC advocates for reasonable Public Utility Regulatory Policies Act and interconnection policies on behalf of renewable qualifying facilities that are located in Idaho, Montana, Oregon, Utah, Washington, and Wyoming.

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.