Proposed New Rules Implementing Renewable Portfolio Standards
The Oregon Public Utility Commission recently published proposed rules implementing the renewable portfolio standards. This third phase of the Commission's rulemaking focuses on compliance with the Renewable Portfolio Standards under the Oregon Renewable Energy Act (ORS 469A.005 through ORS 469A.210). Electric companies must comply with the standards starting in 2011.
The proposed new rules implement critical portions of the renewable portfolio standard in Oregon. These include:
• the method for calculating the incremental cost of compliance;
• the requirements for implementation plans that must be filed every two years;
• alternative compliance rates and use;
• compliance standards including most importantly application of the cost limit;
• compliance reports
A key part of the new proposed rules is the cost limit contained in the Oregon Renewable Energy Act, which excuses electric companies from compliance with the renewable portfolio standards to the extent that the cost of complying exceeds 4% of a utility's revenue requirement. The proposed rules establish the method for calculating incremental cost of compliance and other key provisions for this "off ramp" from the renewable portfolio standards.
While these rules are technical and detailed, they are extraordinarily important for the development of renewables in Oregon and the Pacific Northwest. It is likely that the Commission will fine-tune these rules as the RPS takes effect in 2011 but important policies are being established with these proposed rules.
Comments regarding the proposed rules may be filed anytime before May 21, 2009. A public hearing will be held May 18, 2009, at the Commission.
Post authored by David White, partner practicing in the Sustainability Practice Group.
