Oregon Commission Approves PacifiCorp’s Waiver of Competitive Bidding Rules for New Schedule 272 Agreements

On August 24, 2023, the Oregon Public Utility Commission (Commission) approved PacifiCorp’s application for a waiver of the Oregon competitive bidding rules (CBRs) to allow PacifiCorp to move forward with two solar purchase power agreements (PPAs) and a related agreement under PacifiCorp’s Schedule 272. 

Schedule 272, PacifiCorp’s Renewable Energy Rider Optional Bulk Purchase Option, enables large nonresidential customers to enter an individually negotiated agreement with PacifiCorp to purchase Renewable Energy Certificates (RECs) on their behalf. PacifiCorp will obtain power from the solar resources for all customers and sell the RECs to a specific customer, Vitesse, LLC (Vitesse). Commission Staff reviewed the proposed procurement and found there was good cause to waive the CBRs considering the PPAs will benefit all PacifiCorp customers and represented a time-limited opportunity. The Commission order can be viewed here.

Although Commission Staff recommended approval of PacifiCorp’s request, they flagged a potential concern with PacifiCorp entering a long-term REC sale while the Commission is still evaluating the implementation of Oregon’s 100% clean energy law, HB 2021. Commission Staff noted the Commission could require a condition be added to the Schedule 272 agreement or the Commission could suspend the Schedule 272 program. PacifiCorp and Vitesse objected, noting any condition would require renegotiating key terms including price and suspension would prevent Vitesse from meeting its corporate clean energy goals. PacifiCorp also noted that it is still developing its Voluntary Renewable Energy Tariff, which will provide another option for customers like Vitesse, but that effort is ongoing. The Commission declined to impose a condition or suspend Schedule 272, though the Commission noted it will evaluate the prudency of PacifiCorp’s actions in a future cost recovery proceeding.

Sanger Law, PC represented Vitesse in this proceeding.

Vitesse is a limited liability company that operates data processing and hosting centers in Oregon.

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.