On January 5, 2023, the Oregon Court of Appeals affirmed an appeal of the Oregon Public Utility Commission’s (Commission) order in Docket No. UM 1931 regarding Commission jurisdiction over executed Public Utility Regulatory Policies Act (PURPA) contracts and the start of Portland General Electric Company’s (PGE) fixed-price term under then-existing standard power purchase agreements (PPA). The Court’s decision held that the 15-year fixed-price period under PGE’s then-existing PURPA PPAs began at contract execution not commercial operation date and that the Commission has jurisdiction over executed contracts between qualifying facilities (QFs) and the utilities.
The case began in January 2018 when NewSun Energy filed a complaint against PGE on behalf of its QF projects in federal court. Shortly after, PGE filed a complaint at the Commission against the NewSun QFs and requested the Commission take jurisdiction over the case from the federal court. The Northwest & Intermountain Power Producers Coalition (NIPPC), Community Renewable Energy Association (CREA), and Renewable Energy Coalition (REC) intervened in the Commission docket and submitted testimony and a motion for summary judgment. The Commission granted PGE’s motion for summary judgment and denied all other motions for summary judgment in August 2019. In January 2020, NewSun filed a petition for judicial review of the Commission’s order at the Oregon Court of Appeals. NIPPC, CREA, and REC appeared as amici curiae, or ‘friends of the court’, and filed a brief.
There were two key issues before the Oregon Court of Appeals. First, whether the Commission has jurisdiction over a dispute arising from executed PURPA contracts between a QF and the utility. Second, whether the 15-year fixed-price period under PGE’s then-existing PPAs began at contract execution or the commercial operation date.
The Court held the Commission does have jurisdiction to resolve this dispute. The Court agreed with PGE and the Commission that the Commission has jurisdiction under ORS 757.500(1), which provides the Commission with jurisdiction over a complaint against “any person whose business or activities are regulated by…the Commission.” Thus, the Court held the Commission has jurisdiction over the complaint against the NewSun QFs because the Commission regulates the activities of the QFs.
Finally, the Court held the 15-year fixed-price period under PGE’s then-existing PPAs began at contract execution not the commercial operation date. The Court analyzed the contract language to determine the fixed-price period began at contract execution. Thus, the Court affirmed the Commission’s decision that the 15-year fixed-price period under PGE’s then-existing PPAs began at contract execution not the commercial operation date.
Sanger Law represented CREA, NIPPC, and REC in these proceedings.
CREA supports business and economic opportunities through renewable energy development in a competitive environment. CREA supports use of free enterprise principles to create economically and environmentally responsible electric generation within the State of Oregon.
NIPPC represents electricity market participants in the Pacific Northwest, including independent power producers, electricity service suppliers, and transmission companies. NIPPC is committed to facilitating cost-effective electricity sales, offering consumers choices in their energy supply, and advancing fair, competitive power markets.
REC advocates for reasonable Public Utility Regulatory Policies Act and interconnection policies on behalf of renewable qualifying facilities that are located in Idaho, Montana, Oregon, Utah, Washington, and Wyoming.
Disclaimer
These materials are intended to as informational and are not to be considered legal advice or legal opinion, nor do they create a lawyer-client relationship. Information included about previous case results does not assure a similar future result.
