Current through Register Vol. 63, No. 9, September 1, 2024
(1) For the
purposes of ORS
757.396,
a large natural gas utility must calculate its total incremental annual cost as
follows:
(a) A large natural gas utility must
apply a cost-effectiveness calculation to all RNG that the utility acquires for
its retail natural gas customers. The cost-effectiveness calculation must be
consistent with the methodology used to evaluate RNG resources in the utility's
most recently acknowledged integrated resource plan, or integrated resource
plan update, or as the utility may otherwise be directed by order of the
Commission;
(b) For each purchase
of RNG from a third party that is not cost effective according to the
calculation in subsection (1)(a) of this rule, the dollar value of the
difference between the levelized cost of the purchased RNG and the levelized
cost ofa cost-effective purchase of a comparable quantity of geologic natural
gas of the same vintage and contract duration represents the incremental cost
of that purchased RNG. During each year, the incremental cost of all RNG
purchases will be summed to calculate their contribution toward the utility's
total annual incremental cost;
(c)
For each purchase of RNG from a third party that is cost effective according to
the calculation in subsection (1)(a) of this rule, the dollar value of the
difference between the levelizedcost of the purchased RNG and the levelized
cost of a comparable quantity of geologic natural gas of the same vintage and
contract duration represents the cost savings of that purchased RNG. During
each year, the cost savings of all RNG purchases will be summed and subtracted
from the incremental cost of RNG purchases described in subsection
(1)(c);
(d) For each qualified
investment that is not cost effective according to the calculation in
subsection (1)(a) of this rule, the dollar value of the difference between the
cost of the qualified investment plus operating costs associated with that
investment and a cost-effective proxy resource represents the incremental cost
of that qualified investment;
(e)
For each qualified investment that is cost effective according to the
calculation in subsection (1)(a) of this rule, the dollar value of the
difference between the cost of the qualified investment plus operating costs
associated with that investment and a proxy resource represents the cost
savings of that qualified investment;
(f) During each year, the levelized
incremental costs associated witheach qualified investment described in
subsections (1)(d)and (1)(e)must be summed to calculate a gross total annual
incremental levelized cost; and
(g)
To calculate a net total annual incremental levelized cost, a large natural gas
utility must sum the value calculated according to subsection (1)(b) and the
gross total annual incremental levelized cost according to subsection (1)(f),
then subtract from this total any value received during that year by a large
natural gas utility upon any resale of RNG to an entity other than a retail
utility customer, including any associated RTCs.
(2) The resultant net cost described in
subsection (1)(d) will serve as a large natural gas utility's total incremental
annual levelized cost for the purposes of ORS
757.396 and these rules.
(3) If a large
natural gas utility's total incremental annual levelized cost exceeds five
percent of the large natural gas utility's total revenue requirement from the
utility's normalized results of operations report that was most recently filed
with the Commission, the large natural gas utility may not make another
qualified investment during that year unless:
(a) The large natural gas utility immediately
files a petition with the Commission to exceed its revenue requirement cap,
stating that it has exceeded or expects to exceed the five percent of total
revenue requirement cap;
(b) In its
filing, the large natural gas utility shows good cause why it should continue
to make qualified investments that year to meet the applicable annual RNG
target volume set forth in ORS
757.396;
(c) In its filing, the large natural gas
utility identifies the number of, and associated costs for, all qualified
investments made during that year as of the date of the filing;
(d) In its filing, the large natural gas
utility identifies all the qualified investments that it intends to make before
the end of the year and the total anticipated costs associated with those
additional investments;
(e) In its
filing, the large natural gas utility requests the Commission's approval to
continue making qualified investments during that year; and
(f) The Commission approves the utility's
request to continue making qualified investments during that year.
(4) After a large natural gas
utility makes a filing pursuant to section (3), the Commission generally will
consider whether to approve or deny the utility's petition, or to conduct
further investigation, within thirty days of the filing. The Commission may
consider comments on the petition from interested persons that are filed within
fifteen days of the utility's petition.
Statutory/Other Authority: ORS 756, 757
Statutes/Other Implemented: ORS
757.396
