Idaho Commission Determines that QFs Cannot Establish a LEO Unless the Utility Delays Contract Execution

In April 2021, the Idaho Public Utilities Commission (the Commission) affirmed its December 2020 order that qualifying facilities (QF) under the Public Utility Regulatory Policies Act of 1978 (PURPA) can only establish a Legally Enforceable Obligation (LEO) by filing a meritorious complaint against the purchasing utility before the utility’s rates change. This order means that QFs interested in selling to Idaho utilities can only lock in contract pricing by obtaining a fully executed contract before rates change or by demonstrating that a utility delayed contract execution.  [Read more…]

Oregon Court of Appeals Dismisses Utility Appeal regarding PURPA Fixed Price Payments

In December 2020, the Oregon Court of Appeals dismissed Portland General Electric Company’s (PGE’s) appeal of the Oregon Public Utility Commission’s (Oregon Commission’s) decision in Docket No. UM 1805 regarding contract term requirements under the Public Utility Regulatory Policies Act (PURPA). The Court’s decision capped a series of decisions affirming a long-standing Oregon Commission policy where qualifying facilities (QFs) eligible for standard contracts receive 15 years of fixed price payments.    [Read more…]

The Montana Supreme Court Rules Against the Montana Commission’s Approval of Shorter Contract Terms and Lower Avoided Cost Prices

On August 24, 2020, the Montana Supreme Court ruled against the Montana Public Service Commission’s (Montana Commission) actions to reduce avoided cost rates and shorten contract terms for power purchase agreements between the utilities and solar Qualifying Facilities (QFs). The ruling is a victory for renewable energy developers and advocates, as it upheld an integral piece of the Public Utility Regulatory Policy Act of 1978’s (PURPA) that encourages QF development. [Read more…]

Wyoming Commission Reduces PURPA Contract Terms and Changes PacifiCorp’s Avoided Cost Pricing Method

On June 23, 2020, the Wyoming Public Service Commission (Wyoming Commission) partially granted a request from PacifiCorp, dba Rocky Mount Power, for authority to modify its Public Utility Regulatory Policies Act (PURPA) contracts with qualifying facilities (QFs). Within the same proceeding, the Wyoming Commission approved PacifiCorp’s other proposed changes to its avoided cost pricing methodology.  [Read more…]

Ninth Circuit Reaffirms PURPA’s Must-Purchase and Fixed Contract Price Requirements

On July 29, 2019, the Ninth Circuit released an opinion in Winding Creek Solar, LLC v. California Public Utility Commission (California Commission or CPUC), finding that the Public Utility Regulatory Policies Act (“PURPA”) preempted the CPUC’s “Renewable Market Adjusting Tariff” (Re-Mat) and “Standard Offer Contract” programs. Under PURPA, utilities are required to purchase any energy and capacity made available from a qualifying facility (QF) at the utility’s avoided cost, and the QF has the option to have the price it is paid for that energy and capacity determined either at the time of contracting or at the time of delivery. [Read more…]