Or. Admin. Code § 860-038-0080 - Resource Policies and Plans
(1)
The Commission adopts the following policies with respect to the Oregon share
of generating resources (generating assets and power purchase contracts with a
duration of at least one year) of each electric company:
(a) At such time as the Resource Plan is
implemented and fully executed, each electric company will retain in its Oregon
revenue requirement costs associated with a level of generating resources that
is not greater than that necessary to meet the current and reasonably expected
future loads of its Oregon cost-of-service consumers. In determining whether an
electric company has excess generating resources, the Commission will consider
the projected useful lives and mix of fuels of the electric company's
generating resources. To encourage the development of a competitive retail
energy market, it is the policy of the Commission to release to the competitive
market generating resources in excess of such reasonably expected future loads.
It is also the policy of the Commission to determine a one-time valuation for
the share of an electric company's generating resources attributable to Oregon
consumers who are not cost-of-service consumers;
(b) The Commission will not require an
electric company to acquire new generating resources except as provided in ORS
757.663.
(c) Major capital improvements to existing
generating resources will continue to be, and new generating resources will be,
subject to least cost planning processes and analyses and the Oregon share of
their prudently-incurred costs will be included in an electric company's Oregon
revenue requirement, which for a multi-state electric company shall be
consistent with Commission decisions pursuant to subsection (3)(a)(G) of this
rule.
(d) The Oregon share of the
costs of each generating resource may be either completely in, completely out,
or "mixed" with respect to inclusion in an electric company's Oregon revenue
requirement. The Commission will permit mixed status unless it finds that mixed
status will:
(A) Reduce the generating
resource's operating efficiency;
(B) Harm the development of a competitive
market; and
(C) Prevent the owners
from making economic decisions about the operation of the generating
resource.
(e) For a
multi-state electric company for which the Commission adopts a fixed-allocated
Oregon share amount, and a Resource Plan is implemented, such generating
allocation amount will be used for developing cost-of-service rates, transition
charges and credits, and Operations and Maintenance allocations as well as
other allocations that use generation-based factors.
(2) For purposes of this rule and OARs
860-038-0100 and
860-038-0140, a class's share of
the total Oregon share of a generating resource will equal the ratio of the
class's total Oregon retail load measured in weather-normalized kilowatt-hour
sales to total Oregon retail load measured in weather-normalized kilowatt-hour
sales for a 12 month period as determined by the Commission. Loads will be
adjusted to remove the effects of demand exchange programs that were in effect
during the 12 month period. To the extent such shares are not known as of the
time period established by the Commission, the electric company will use
estimates until relevant data are available.
(3) By a date to be determined by the
Commission, each electric company must file with the Commission a resource plan
that meets the following requirements:
(a)
Information. The resource plan must include the following information:
(A) Consistent with paragraph subsection
(3)(a)(G) of this rule, the amount of capacity and energy and the availability
of each generating resource that is attributable to the share of the electric
company's load from cost-of-service consumers, and the amount that is
attributable to the share of the electric company's load from consumers not
eligible for a cost-of-service rate;
(B) A forecast of the revenue requirements
associated with each generating resource over both its projected remaining
useful life and economic life, with sensitivities for major assumptions, and
identification of deferred taxes, excess deferred taxes, FASB 109 assets, and
any investment tax credits associated with each generating resource;
(C) The other characteristics of the
generating resource that could affect its value including but not limited to
its capability to provide or support ancillary services, the value of its site
and environmental or operating permits, and any environmental issues associated
with it;
(D) A forecast of future
market prices for electricity, including forecasts of major fuel inputs and
sensitivity analyses;
(E) A
forecast of loads of the electric company's Oregon cost-of-service consumers
covering at least the period of the longest-lived generating
resource;
(F) The estimated fair
market value of the Oregon share of each generating resource; and
(G) For a multi-state electric company, how
the electric company proposes to allocate a share of its generating resources
to Oregon. The multi-state electric company must also propose a fixed
Oregon-allocated generating resource share based on the following factors:
(i) A forecasted allocation of each
generating resource for a 12 month period as determined by the Commission,
using traditional allocation methods recognized by the Commission;
(ii) The projected potential changes in
Oregon share, due to alternative inter-jurisdictional allocation methods, over
the life of each resource absent implementation of these rules; and
(iii) The change in risk borne by parties by
fixing the Oregon share of generating resource.
(b) Recommended Valuation Methodology. The
resource plan must identify, for each generating resource, or portion thereof
if the resource meets the criteria for mixed status, whether the Oregon share
of each generating resource should be:
(A)
Retained in the electric company's Oregon revenue requirement for the purpose
of serving Oregon cost-of-service consumers and administratively valued through
a process to be specified by rule;
(B) Sold through the auction process
specified in OAR 860-038-0100, and if so:
(i) The general terms and conditions that
should apply to the sale, including but not limited to, a prototype purchase
and sale agreement; and
(ii) Any
sales incentives that the electric company proposes to apply to Oregon
nonresidential consumers for the Oregon nonresidential consumers' share of the
generating resource. Such incentives may be structured to encourage the
electric company to follow the recommended timeline provided under subsection
(3)(d) of this rule; or
(C) Removed from the electric company's
Oregon revenue requirement and administratively valued through a process to be
specified by rule, and if so, any incentive to apply to Oregon nonresidential
consumers for removing the nonresidential consumers' share of the generating
resource from revenue requirement. Such incentives may be structured to
encourage the electric company to follow the recommended timeline provided
under subsection (3)(d) of this rule.
(c) Results of the Resource Plan. The
resource plan must identify the impacts of implementing it, including the
following:
(A) The approximate load/resource
balance, and the availability of each generating resource based on the electric
company's current and forecasted load for Oregon cost-of-service
consumers;
(B) The estimated rates
to each Oregon customer class that will result from implementation of the
resource plan, including:
(i) The amount of
estimated transition charges and credits;
(ii) A comparison to the current effective
rates of the electric company as of the date of filing; and
(iii) An estimate of the cost-of-service
rates for cost-of-service consumers 10 years after implementation of the
resource plan.
(C) How
the resource plan is consistent with the purposes of SB 1149 in that the plan:
(i) Facilitates a fully competitive
market;
(ii) Provides consumers
fair, non-discriminatory access to competitive markets; and
(iii) Retains the benefits of low-cost
resources for consumers.
(D) Any other implications of the resource
plan that could help inform the Commissioners in their decision.
(d) Process. The electric
company must develop the resource plan in a public process designed to inform
and solicit input from Commission staff, representatives of Oregon residential,
small nonresidential and large nonresidential consumers, and other interested
parties.
(4) The
Commission must consider the electric company's recommended resource plan in a
contested case proceeding. The Commission's order must identify those resources
that, at the option of the electric company, may be auctioned immediately,
before any Commission decision to waive the requirements for a cost-of-service
rate for any consumers under ORS
757.603(1)(b)
and before final administrative valuation of other resources and potential
modification of the electric company's Resource Plan. The Commission's order
must also approve, modify, or reject the resource plan.
(a) If the Commission modifies the resource
plan, the electric company will have 30 days from the date of the Commission's
order to accept or reject the modifications. If the electric company rejects
the Commission's modifications, the electric company must file a second
recommended resource plan within 60 days of the date of rejection;
(b) If the Commission rejects the resource
plan, the order rejecting the plan must specifically describe the deficiencies
in the resource plan. In that event, the electric company must file a second
recommended resource plan within 60 days of the order rejecting the original
plan;
(c) If the Commission
modifies the second recommended resource plan, the electric company will have
30 days from the date of the order to accept or reject the modifications. If
the electric company rejects the Commission's modifications, future attempts at
reaching a resource plan may be initiated by either the electric company or the
Commission. The timelines outlined in subsection (4)(a) of this rule shall
apply once a new resource plan is submitted or modifications to a former plan
are suggested.
(5) A
resource plan that has been recommended by the electric company and approved by
the Commission, or modified by the Commission and accepted by the electric
company, is referred to in these rules as a "Resource Plan." The Resource Plan
may encompass one plan or a set of plan options corresponding to different
assumptions about consumer eligibility for cost-of-service rates. The electric
company must implement the Resource Plan consistent with OAR
860-038-0100 and a process for
administrative valuation to be specified by rule. The ongoing valuation method,
as described in OAR 860-038-0140, will be used to
establish transition charges and credits for resources that have not been sold
or administratively valued.
(6) For
a multi-state electric company, pending the implementation of a Resource Plan
and establishing final values for generating resources in accordance with these
rules, the following will guide developing rates for Oregon consumers of the
electric company for the period March 1, 2002, through December 31, 2003:
(a) Cost-of-service rates will be based upon
traditional allocation methods;
(b)
Transition charges or credits shall not include assumed costs and revenues of
the portion of generating resources not needed to serve Oregon loads associated
with residential and small nonresidential consumers choosing portfolio access,
small nonresidential consumers choosing direct access or standard offer rate
options, and large nonresidential consumers when, and to the extent, the costs
and revenues of the generating resources that are not needed are recognized and
included in the electric company's revenue requirement in another state, less
the costs and revenues of such generating resources which have been included in
the electric company's revenue requirement by another state prior to October 1,
2001; and
(c) Beginning January 1,
2004, transition charges and transition credits will be calculated without
regard to subsection (7)(b) of this rule.
Notes
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.600 - 757.667
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