Oregon PUC Acknowledges PGE’s 2019 Integrated Resource Plan

Portland General Electric’s (PGE) 2019 Integrated Resource Planning (IRP) Process came to a conclusion as the Oregon Public Utility Commission (PUC) released the final Acknowledgement Order on PGE’s IRP. This Order No. 20-152 , released on May 6, 2020, documents the PUC’s acknowledgement of PGE’s proposed resource portfolio and related Action Items, with conditions and directives for PGE for its future IRP.

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. Acknowledgement of the IRP depends on whether the utility has considered all available resources on a comparable basis and generated a least-cost least-risk resource portfolio through comprehensive analysis and public involvement. The PUC has determined that PGE’s 2019 IRP meets these requirements.

Once the least-cost least-risk portfolio is identified, the utility proposes a set of Action Items or strategies to acquire these resources. The PUC acknowledged PGE’s Action Items with conditions recommended by the PUC Staff and other stakeholders, including CUB. Acknowledgement implies that the PUC considers PGE’s resource portfolio to be least-cost least-risk for Oregon customers, and that the associated action plan is 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 PGE’s 2019 IRP process. CUB was able to influence the Order by having the PUC direct PGE to acquire all cost effective and “reasonable” customer demand resources. Demand response programs are designed to work with customers to reduce consumption during peak times. While customers play a significant role in demand reduction, CUB ensured that these conservation measures should not be overly burdensome. For example, while charging customers $10/kWh during the hottest day of the year would reduce demand, it would not allow customers to affordably use electricity – it would not be reasonable. The PUC’s Order also directs PGE to conduct deeper studies on energy efficiency potential of data centers based on CUB’s recommendation. This would further boost energy conservation, lowering the need for new capital investments. 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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