2022 Program UpdateHouse Bill 3141
, passed by the Oregon Legislature during the 2021 session, made several changes to the Public Purpose Charge and related programs,
including the LECPPP (industrial self-direct program). ODOE conducted a rulemaking proceeding in the fall of 2021 to implement those changes. Effective January 1, 2022, DS-CT or “investments in distribution system-connected technologies" projects are eligible to be self-directed for the renewable energy portion of the PPC.
Cost-effective energy efficiency recovered through rates has essentially replaced
the conservation portion of the public purpose charge, which no longer exists.
What is the LECPPP?
Senate Bill 1149, adopted
in 1999, directed Oregon's two largest utilities, Portland General Electric and Pacific Power,
to collect a public purpose charge from
their customers to fund energy conservation and renewable projects in
the state. Large
electric consumer sites that used over 8,760,000 kWh in the prior year may be
eligible for the Large Electric Consumer Public Purpose Program, also known as
the Self-Direct Program. Approved sites may
self-direct the renewable portion of their public purpose charge and cost-effective
energy efficiency funded through rates, rather than pay the utility
How it Works
The Oregon Department of Energy reviews applications and approves sites that meet eligibility criteria to become Self-Direct consumers. Certified sites can submit energy efficiency and renewable project applications to ODOE through the interactive LECPPP website
. ODOE staff review applications and pre-certify eligible energy efficiency or renewable project applications. Sites then spend their own funds to build pre-certified projects. Once the project is complete, they submit an application for credit to ODOE. ODOE reviews and approves the eligible project costs, which include a small fee paid to ODOE for program administration. Certified project costs add to the energy efficiency or renewable credit balance, and the credits do not expire.
Each month when a site has an energy efficiency or renewable credit balance, they can offset the monthly cost-effective energy efficiency amount included in rates and the renewable portion of the Public Purpose Charge, meaning they do not pay the utility that portion of the PPC. The available credit balance is reduced by the monthly energy efficiency and renewable offset amount. Funds spent on certified energy efficiency projects, Green Tags (also known as Renewable Energy Certificates), and distribution system-connected technologies projects increase the site credit balances while monthly offsets reduce them.