Oregon PUC to Open Docket on Direct Access Rules, Procedures

The Oregon PUC agreed to open a docket to address generic issues relating to direct access.

The generic proceeding was requested under a stipulation, in Docket UE 236, among Portland General Electric, retail suppliers, and industrial customers, concerning revisions to the PGE direct access program.

The stipulating parties noted that Oregon's direct access rules have been in place for nearly ten years, and asked that a generic proceeding be opened to address certain direct access issues not specifically related to the PGE program. As noted by the PUC in its order granting the request, the generic investigation should allow parties to propose changes to the rules to improve the program and increase participation.

The generic proceeding will specifically address the potential for direct access customers to pay two franchise fees (one in base rates and another to their direct access supplier) if certain municipalities enact a franchise fee on direct access suppliers.

As to the specific provisions related to PGE's direct access program, the PUC approved the stipulation without modification.

Among other things, the adopted stipulation retains the month-long enrollment period for PGE's long-term cost-of-service opt-out program (Schedule 485 and Schedule 489), commencing September 1.

Additionally, for the long-term cost-of-service opt-out program, the 2% rate impact limiter related to fixed generation costs contained in PGE Schedule 129, Special Condition 2, will be amended as follows:

a. At least four weeks prior to the beginning of the long-term shopping window, PGE will estimate and either post on its website, or state in a transmittal letter to an advice filing, the maximum amount of incremental load that can switch to the long-term opt-out program without violating the 2% rate impact limiter. For those Enrollment Periods in which the Schedule 129 Transition Adjustment is expected to be a positive charge to participants, the revenues from Schedule 129 will be applied to the 2% rate impact test.

b. The amount of incremental load that is eligible to switch to the long-term opt-out program in any given non-rate-case year will be subject to a Participation Cap that is defined to be the larger of: (1) the amount of load identified in Section (a), above, or (2) the amount of load that has submitted formal notice to PGE of participation in the long-term opt-out program up to and including the entire load of the first customer causing the amount of load identified in (a), above, to be exceeded.

c. Except for the overall participation limit of 300 MWa, there will be no limit on incremental participation in the long-term opt-out program for enrollment periods that fall within the rate-effective period applicable to a new general rate case.

If switching to the long-term opt-out program would cause a net rate impact on PGE Cost-of-Service customers exceeding the 2% rate impact limiter, PGE will be made whole through a balancing account of the costs exceeding the 2% rate impact limiter

For direct access service (rate schedule series 500), the Third and Fourth Quarter Schedule 128 Balance of Year enrollment windows will be terminated. The Second Quarter Balance of Year window will continue in its current form.