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Oregon Presents Draft Restructuring Rules
The Oregon Public Utility Commission (OPUC) staff presented its proposed rules to implement Oregon's new electricity restructuring law (SB 1149 ) during a workshop Feb. 9 and 10. The rules included administration of the Public Benefits Charge (PBC) for investments in energy conservation, new renewable resources and low-income weatherization; portfolio choices for residential customers; treatment of utility generating plants left behind once large customers move to the open power market; environmental disclosure requirements; and licensing of competitive suppliers.
While most parties seem pleased with the draft rules, PacifiCorp's key position was completely rejected. The company holds that customers wanting to maintain access to the utility's low-cost generation must stay with its regulated rate. If customers choose to go to the market, they give up that access. But all other parties, including OPUC staff, insist any difference between the cost and the market value of PacifiCorp's generation be paid to customers if they leave the utility. Otherwise customers would be punished for exercising their right to choose, destroying any chance of developing a competitive market in Oregon.
Representatives of utility customers and marketers were cautiously optimistic about the draft rules. They fear incumbent utilities will have an unfair advantage in the market and thus scare off any genuine competition. They pointed specifically to the lack of a strict requirement for utilities to use affiliates to sell into the market. In addition, they want a rule requiring a one-time valuation and settlement of past utility debts and assets rather than an ongoing comparisons of a utility's expenses and the market. The draft rule gives the utility the option of either type of evaluation.
Environmental advocates were pleased with the staff's decisions on how to administer the 3% PBC. The proposal creates an independent panel (overseen by OPUC) to determine how PBC investments should be made. OPUC staff is actively working with both Portland General Electric and PacifiCorp to facilitate the transition to independently directed conservation investments and reports a very cooperative attitude by the utilities' conservation departments.
Steven Weiss