Oregon PUC Acknowledges Pacific Power’s 2019 IRP
Posted on July 6, 2020 by Sudeshna Pal
Tags, Energy
Pacific Power’s (PAC) transition away from coal took a step forward this month as the Oregon Public Utility Commission (PUC) approved PAC’s 2019 Integrated Resource Plan (IRP). The IRP retires five coal plants by 2025 and lays out a plan to invest in wind, solar, and battery storage over the coming decade. The PUC’s decision (Order No. 20-186), released on June 8, 2020, placed conditions and directives on the utility, but found that its plan was generally reasonable.
Electric and gas utilities in Oregon are required to draft long-term resource acquisition plans as part of the regulatory process. These resource plans are based on economic or benefit-cost and risk analysis of various supply and demand side resources. The utility must present a resource portfolio that is the least-cost and least-risk for utility customers. The utility is also required to engage stakeholders and keep the planning process transparent. Approval of the IRP depends on whether the utility has considered all available resources on a comparable basis, and generated a least-cost least-risk or the “preferred” portfolio through comprehensive analysis and public involvement. The PUC has determined that PAC’s 2019 IRP meets these requirements.
The utility proposes a set of Action Items or strategies to acquire the preferred portfolio resources. The PUC acknowledged Pacific Power’s immediate investments with conditions recommended by the PUC Staff and other stakeholders, including CUB. Approval implies that the PUC considers PAC’s preferred portfolio to be least-cost, least-risk for Oregon customers and the associated action plan reasonable. The actual investment actions are still required to pass the prudency test before getting reflected in customer rates.
CUB actively represented Oregon residential customers in PAC’s 2019 IRP process and supported several action items put forward by Pacific Power, while raising concerns over several others. CUB was largely supportive of Pacific Power’s coal analysis resulting in early retirement of five coal plants by 2025. The PUC’s Order acknowledges this Action Item. This can be considered as an important milestone given that Pacific Power operates in six states, which have conflicting views on coal retirement. Coal production accounts for more than 60 percent of Pacific Power’s electricity generation.
CUB was also able to influence the Order by having the PUC direct PAC to evaluate new modeling assumptions in its future coal analysis, which could lead to more accurate estimates of costs and benefits of keeping certain coal plants on its system. CUB strongly believes that the utility underestimates future carbon regulation which will add costs to future coal operation, and therefore, CUB will continue to advocate for accelerated coal retirement in Pacific Power’s future IRPs.
The PUC Order directs Pacific Power to acquire all cost effective and “reasonable” customer demand resources, based on CUB’s recommendation. This would allow customers to participate in energy conservation programs without the programs being unduly burdensome. CUB appreciates the PUC responding to our concerns and recommendations.
CUB will continue to participate in future IRP processes and ensure that Oregon ratepayers are only paying for least-cost, least-risk, and clean utility resources.
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06/30/20 | 0 Comments | Oregon PUC Acknowledges Pacific Power’s 2019 IRP