Current through Register Vol. 63, No. 9, September 1, 2024
(1)
No later than October 1, 2010, and no later than October 1 of each succeeding
even-numbered calendar year, the Commission will set an alternative compliance
rate for the next even-numbered compliance year and the year immediately
following that even-numbered compliance year for each electric company subject
to renewable portfolio standards contained in ORS
469A.052.
(2) The Commission will consider the
following factors, and any other factors it determines are appropriate for the
circumstances, when setting an alternative compliance rate for an electric
company to provide an adequate incentive for the electric company to purchase
or generate qualifying electricity in lieu of using alternative compliance
payments to meet the applicable renewable portfolio standard set forth in ORS
469A.052:
(a) Forecasts of the likely costs of new
qualifying electricity compared to the cost of non-qualifying
electricity.
(b) Likely future
deliveries of qualifying electricity from contracts and generating facilities
owned by the electric company, both planned and existing.
(c) The number of unbundled renewable energy
certificates the electric company anticipates using to meet the applicable
renewable portfolio standard.
(d)
Commission determinations made under ORS
469A.170 in reviewing compliance
reports by the electric company and information from a review of the company's
compliance report for the previous compliance year, including but not limited
to:
(A) Past methods of compliance with the
renewable portfolio standard including the use of:
(i) Bundled and unbundled renewable energy
certificates that were not banked;
(ii) Banked renewable energy certificates;
and
(iii) Alternative compliance
payments;
(B) The timing
of electricity purchases;
(C) The
relevant market prices for electricity purchases and unbundled renewable energy
certificates;
(D) Whether the
actions taken by the electric company are contributing to long-term development
of generating capacity using renewable energy sources;
(E) The effect of the actions taken by the
electric company on the rates payable by retail electricity
consumers;
(F) Good faith
forecasting differences associated with the projected number of retail
electricity consumers served and the availability of qualifying electricity;
and
(G) Consistency of the
compliance reports for the two previous compliance years with the applicable
implementation plans filed under ORS
469A.075, as acknowledged by the
Commission, including conditions specified by the Commission under
469A.075(3).
(3) The Commission may consider
the following additional factors when setting an alternative compliance rate
for an electric company:
(a) Uncertainties
associated with forecasts of the incremental cost of new qualifying electricity
and the incremental cost of compliance in implementation plans required by ORS
469A.075. Uncertainties include,
but are not limited to:
(A) Forecasts of the
costs of renewable resources;
(B)
Fuel price forecasts for proxy plants required under OAR 860-083-0100;
and
(C) Whether federal incentives
for renewable resources will be extended beyond current sunset dates.
(b) Uncertainties about future
market prices for renewable energy certificates including, but not limited to:
(A) Uncertainties associated with forecasts
of the incremental costs of new qualifying electricity; and
(B) The effects of current and potential
policies by other states and the federal government on the availability and
price of renewable energy certificates.
(c) Plans to use alternative compliance
payments in the current implementation plan of the electric company.
(4) The Commission may approve the
use of the alternative compliance funds in the holding accounts described in
ORS 469A.180(4) for
the purposes specified in
469A.180(5)
upon a filed request by the electric company, in an order issued upon
conclusion of the electric company's general rate case or in another proceeding
as directed by the Commission.
(a) If such
funds are used for the acquisition of qualifying electricity, the renewable
energy certificates associated with such electricity may be used by the
electric company for future compliance with the renewable portfolio
standard.
(b) Upon a request by the
electric company, or in response to a filing of an implementation plan by the
electric company, the Commission may order that all or a portion of such funds
be transferred to the nongovernmental entity receiving funds under ORS
757.612(3)(d).
The Commission may specify the proportions of transferred funds that are to be
used for acquiring qualifying electricity and for energy conservation programs
within the electric company's service area.
(c) If an electric company requests or
proposes to use or transfer such funds, it must notify persons appearing on the
service list of the most recent implementation plan acknowledgement proceeding
for the electric company. The Commission will allow an opportunity for public
comment before making a decision to expend such funds.
(5) In deciding which uses to approve for
alternative compliance funds in the holding accounts described in ORS
469A.180(4),
the Commission may consider the following factors and any other factors it
determines are appropriate for the circumstances:
(a) The findings of the Legislative Assembly
in enacting the renewable portfolio standards.
(b) Timeliness of the proposed use of such
funds compared to other funding opportunities.
(c) The amount of such funds in the electric
company's holding accounts.
(d) The
likely impacts of using such funds for the acquisition of long-term qualifying
electricity.
(e) Whether there are
opportunities to fund cost-effective energy conservation programs within the
electric company's service area beyond a level that might not otherwise be
achieved.
(f) Whether there are
opportunities to fund cost-effective efficiency upgrades to the electricity
generating facilities owned by the electric company beyond a level that might
not otherwise be achieved.
(g)
Whether the impacts in subsections (5)(e) and (f) of this rule might occur
earlier with the use of such funds.
(6) The Commission will adopt an alternative
compliance rate for the compliance year for each electricity service supplier
subject to ORS 469A.065 no later than 15 months
before each compliance year in the following manner:
(a) The alternative compliance rate for an
electricity service supplier will be the weighted average of the alternative
compliance rates for the electric companies subject to ORS
469A.052 in whose service areas
the electricity service supplier provides electricity.
(b) The weights for subsection (6)(a) of this
rule will be the retail sales in megawatt-hours by the electricity service
supplier in each electric company service area for the year prior to the
applicable compliance year.
(7)
(a) The
Commission may approve expenditures of the alternative compliance funds in the
holding accounts described in ORS
469A.180(6) for
the purposes stated therein through a proceeding as directed by the
Commission.
(b) An electricity
service supplier may request that the Commission direct that current or
prospective alternative compliance funds in the holding accounts described in
ORS 469A.180(6) be
paid directly to the nongovernmental entity receiving funds under
757.612(3)(d).
The nongovernmental entity must use the funds to acquire energy conservation
for the customers of the electricity service supplier.
Stat. Auth.: ORS
756.040,
757.659 &
469A.065
Stats. Implemented: ORS
469A.055 &
469A.180
