PUC Order on March 17, 2011

For the April 1 Allocation Window: Fixed Prices for Solar Pilot Program: Excerpt, Price Spreadsheet, and Full Text

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Excerpt

 

1. April 1st Enrollment Period

 

a. Allocation Method  The Commission adopts the final Staff position that the Commission retain the April 1 enrollment period (rather than a May 1 enrollment period) and use the modified first-come, first -served method to allocate the available capacity for that enrollment period. We agree with all parties that it would be too costly and too disruptive to change the enrollment period and allocation method for the upcoming enrollment. As discussed elsewhere, we do adopt the lottery method for the POE and Pacific Power service areas for the October 1 enrollment period.

 

b. Capacity Allocation  The Commission considered Staffs (and the utilities') proposed capacity reduction (and a 10 percent VIR reduction) at the March 17, 20 II Public Meeting, as an alternative to Staffs proposed 30 percent VIR reduction. The alternatives proposed by Staff were intended to limit the rate impact of the pilot program, either by reducing the VIR or reducing the capacity available under the higher VIR. Based on all factors, as discussed in a companion order in docket UM 1452, the Commission adopted a 20 percent VIR reduction. With that rate reduction, the Commission adopts no changes to available capacity on April I.

 

c. 25 percent Rate Cap The Commission declines to adopt a rate cap. We do not know the ultimate cost of the Program. We continue to revise the VIR rate and rely on competitive bidding to generate the rates for larger systems. Over time, this will result in lower steady-state feed-in tariff rates and lower overall program costs while still providing maximum information for the policy questions posed for this Program

 

d. Utility Survey  The Commission adopts the Joint Utilities' proposal for a web survey that participants can take. The proposed survey is a serviceable approach to gaining useful information about program demand. The proposed 24 hour survey is rejected. In the instance where the allocation is filled within minutes or hours, it would seriously mislead participants who apply after the allocation has been filled.

 

e. Medium-Scale Competitive Bidding  With one modification, we adopt Staffs proposal to allocate medium-scale system capacity on a 50-50 basis using the VIR rates and competitive bidding. For larger systems, competitive bidding can be an effective means for identifying acceptable rates while keeping costs down. We adopt the Joint Utilities' proposal for timing - competitive bidding for the medium-scale systems will occur during the October 1 enrollment period.

 

f. Disclosure of Bid Prices Staff and a number of the parties recommend that bid prices be disclosed. We adopt the recommendation. We find that disclosing bid prices provides useful program information and will not cause competitive bidding problems.

 

g. Meter Charge  The Commission does not adopt the recommendation to eliminate the meter charge. The VIR rate is a cost-based rate that includes the cost of the meter.

 

h. Insurance Requirement The Commission agrees with the arguments made by the Joint Utilities. The Commission does not adopt the recommendation to eliminate the insurance requirement.

 

2. October 1st Enrollment Period

 

a. Capacity Allocation Method   For the October 1 enrollment period and beyond, the Commission adoptsthe use of a lottery system - rather than a first-come, first-served approach - for small-size and medium-size systems eligible for a VIR rate in the service areas of PGE and Pacific Power. The lottery process addresses both the unfairness issues parties have raised about the first-come, first-served method and it allows for a deeper understanding about the demand for the program. In any enrollment, if the eligible capacity does not sell out through the lottery, the remaining capacity will be made available on a first-come, first-served basis. The use of a lottery system raises a number of implementation details. We direct Staff to convene a workshop( s) to identify all necessary rule changes or Commission direction to implement lottery systems in sufficient time for the October 1 enrollment period.

 

b. Volumetric Incentive Rate Determination Process

 

i. Staff

Staff proposes to work with all parties to manage the VIR determination process so that Staff can make its October 1 rate proposal no less than two months before the rates would go into effect (August 1,2011).

 

ii. Joint Utilities

The Joint Utilities recommend that Staff initiate a review of the VIR to keep the rate more in line with current market costs.

 

iii. Joint Parties

Joint Parties recommend the Commission take into account the most current cost data for the VIR rate determination. They propose a formula for a VIR reduction, depending on the enrollment.

 

Resolution

Staff proposes a two-month window of notice of VIR rates to provide Program participants ample time to adjust to those rates. We concur with the need to provide ample time for notice of rates for upcoming enrollment periods. As part of the workshops described above, we ask Staff and the parties to address two issues related to notice and its relationship with the automatic rate adjustment mechanism: (1) How much notice of rates should be provided, and (2) If the notice requirement creates an inconsistency with the existing automatic rate adjustment mechanism, how should we address that inconsistency. We direct Staff to provide recommendations in ample time for the October 1 enrollment period.

 

c. Medium-Size Capacity Reallocation

The Commission declines to adopt the recommendation to change the capacity allocation between small-scale and medium-scale market segments at this time. We see no basis to make such a change.

 

3. General Issues

a. Quarterly Enrollment The Commission declines to adopt the recommendation to go to quarterly enrollment periods. We concur with Staff and the Joint Utilities that such a change would be administratively burdensome and would increase administrative costs without compensating benefits.

 

b. Annual Reports

The Commission declines to adopt the recommendation to write annual legislative reports, consistent with existing law.

 

c. Resource Value

OREP recommends that the utility "resource values" be calculated. The Commission agrees with Staffs approach to work with utilities to calculate the resource values and report them in 2013 legislative report.

 

d. QF (Qualifying Facility) Prices

OREP proposes that the Commission eliminate its net metering approach for VIR-eligible systems and adopt an "avoided-cost" approach. The Oregon Department of Justice advises us that that would require a law change. The Commission sees no reason to change its approach.

 

e. Solar Industry Development Information and Policies

OREP and other parties have recommended that the Commission acquire and provide more information about the solar industry and solar incentives in general and address the Legislative directive to consider regulatory policies designed to increase the use of solar photovoltaic energy systems, make them more affordable, reduce the cost of incentive programs to utility customers, and promote the development of the solar industry in Oregon. The Commission will continue to work with the Oregon Department of Energy and the Energy Trust to provide general information for the public. Further, as stated in our legislative report, the Commission is not yet ready to identify regulatory policies that may be adopted to further facilitate solar photovoltaic energy generation. The Commission will continue to consider this issue as additional information is obtained from the pilot programs and other programs.

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Price Spreadsheet

Zone	Counties	VIRS for Small Scale				VIRs for Medium Scale
		(<10kW)				(>10kW and <100kW)
		1-Apr-10	1-Oct-10	1-Apr-11		1-Apr-10	1-Oct-10	1-Apr-11
		Original	last *0.9	last *0.8		Original	last *0.9	last *0.8
1	Benton, Clackamas, Clatsop, Columbia, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Washington, and Yamhill	$0.65	$0.59	$0.47		$0.55	$0.50	$0.40
2	Coos, Douglas, and Hood River	$0.60	$0.54	$0.43		$0.55	$0.50	$0.40
3	Gilliam, Jackson, Josephine, Klamath, Morrow, Sherman, Umatilla, Wallowa, and Wasco	$0.60	$0.54	$0.43		$0.55	$0.50	$0.40
4	Baker, Crook, Deschutes, Jefferson, Lake, Malheur, and Harney	$0.55	$0.50	$0.40		$0.55	$0.50	$0.40

 

 

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Full Text

Click here for the full text of the PUC Order on March 17, 2011