Oregon Public Utilities Commission Reopens The Door To Solar Energy Projects In Oregon
The Oregon Public Utility Commission (OPUC) received wide praise yesterday from renewable energy businesses and organizations for its decision in response to a petition filed by PacifiCorp regarding development of solar energy in Oregon. PacifiCorp had questioned the legality of net metering small solar projects (a process by which owners of solar energy facilities sell excess power back to the utility in exchange for a credit on their bill), and whether installers of solar energy systems were "electricity service suppliers" subject to certain regulatory requirements.
The OPUC agreed with its staff, finding net metering legal and ruling that solar developers were not electricity service suppliers. This timely decision is crucial to 32 proposed solar projects slated for installation in Oregon in 2008, all of which had been put on hold by PacifiCorp's petition. Yesterday's decision leaves enough time before expiration of the federal investment tax credit at the end of the year for these projects to be built and qualify for the tax credit, which is crucial to the financial feasibility of these projects. The 32 projects under development would add 13 megawatts to Oregon's grid, which is more than twice the capacity of existing, online solar facilities.
Tonkon Torp LLP represented the Renewable Northwest Project, one of the parties to the case that responded to PacifiCorp's petition. In response to the ruling, Suzanne Leta Liou of RNP stated that "this decision will allow [Oregon's] growing solar market to blossom." The decision is a victory for solar power in particular and the overall strategy of the state of Oregon to become a leader in renewable energy.
Posted by David J. Petersen, partner practicing in the Sustainability and Real Estate & Land Use Practice Groups.
