Public Hearing:
Wednesday, December 1, 2021, 9 a.m.
The ODOE building is currently closed to the public, but our services are open. This public hearing will be conducted virtually via Webex.
Join by webinar:
https://odoe.webex.com/odoe/j.php?MTID=m31fac61beefe2798b63d021fe35ccb6d
Join by phone: +1-408-418-9388 United States Toll
Event number (access code): 2333 503 9296
Event password: Energy (363749 from phones)
Hearing materials:
Background:
This rulemaking is to update the rules for the Large Electricity Consumer Public Purpose Program (LECPPP), also known as the Self-direct program, to reflect the changes made by Oregon Laws 2021, chapter 547 (House Bill 3141). House Bill 3141 made major changes to existing law relating to the Public Purpose Charge and related programs, which include:
- Extending the Public Purpose Charge for an additional 10 years, through January 1, 2036.
- Reducing the PPC from three percent to 1.5 percent of revenues collected from ratepayers of Portland General Electric and Pacific Power.
- Moving the funding of most cost-effective energy efficiency work from the PPC to a charge in rates paid by PGE and Pacific Power customers.
- Adding “investments in distribution system-connected technologies that support reliability, resilience, and integration of renewable energy resources with the distribution system of the electric company" as eligible expenditures for the renewable energy portion of the PPC.
- Requiring that 25 percent of the portion of the PPC designated for renewable energy resources and “distribution system-connected technologies" must be used to serve low- and moderate-income customers.
The existing PPC statutes allow a large electricity consumer with annual electricity usage over one average megawatt to participate in the LECPPP/Self-direct program which is administered by the Oregon Department of Energy. Existing Department rules in Division 140 prescribe the process that participating large electricity consumers must follow, including documentation that large electricity consumers must provide to the Department, in order to be eligible to accrue self-direction credits.
Under the proposed rule changes to implement House Bill 3141, the steps in the existing process will remain largely the same for participants. Significant changes include the addition of “investments in distribution system-connected technologies" (DS-CT) as an eligible use of the renewable energy resource portion of the PPC. The proposed rules include a draft interim definition to determine which technologies are eligible, which was posted for stakeholder comment by the Public Utility Commission in October 2021. The PUC plans to revisit the interim definition in 2022 and to establish a more permanent definition. Large electricity consumers will be limited to self-directing up to 75 percent of the renewable energy portion of their PPC obligation, with the remainder being designated to serve low- and moderate-income customers.
Another significant change is the shift of the funding for energy efficiency work from the PPC to charges in rates. The proposed rule changes provide for continuity for existing participating large electricity consumers having credit balances for previously implemented energy conservation projects, and for projects which have been pre-certified as of January 1, 2022, but not yet completed and certified for self-direction.
The proposed rule amendments include several new definitions related to the substantive changes under House Bill 3141 described above, in addition to the necessary related changes in terminology from “energy conservation" to “cost-effective energy efficiency." Additionally, the proposed rule amendments would (1) repeal two obsolete rules relating to the start-up phase of the LECPPP/Self-direct program in 2001, and (2) delete rule language that implements statutory provisions deleted by House Bill 3141 that relate to self-direction by aluminum plants and to an audit process to demonstrate that no further energy conservation opportunities exist at a large electricity consumer's site. Finally, the proposed rule amendments include non-substantive changes to terminology for consistency.
Commenting on the draft rules:
The Oregon Department of Energy will be holding a public hearing on December 1, 2021 to receive feedback regarding its draft rules to implement the changes made to the LECPPP/Self-direct program by House Bill 3141. ODOE will accept oral testimony on the rules at the public hearing, using the contact information listed above.
Written comments on the rulemaking are due by 5 p.m. on Wednesday, December 1, 2021, and may be sent via email to: wendy.simons@energy.oregon.gov.
The public hearing will be the final opportunity for comment before the department files permanent rules. ODOE plans to file the proposed rules before December 31, 2021, with an effective of January 1, 2022.
For more information, contact: