Oregon PUC Staff Recommends Workshop to Discuss Cessation of Transition Adjustments for Large Direct Access Customers

Staff of the Oregon Public Utility Commission said in comments concerning the PUC's investigation of issues related to direct access that, through a prior round of stakeholder comments, "sufficient information has been received to hold workshops to discuss the various proposals received."

Specifically, Staff proposed that two separate workshops be scheduled, one for each major component of the docket.

One of the workshops would focus on the structure of the direct access programs, including the potential for a program that would allow for the gradual cessation of transition adjustments at both Portland General Electric and PacifiCorp, and which would allow "large consumers" to fully transition to market-based rates, as is currently available only under the PGE five-year cost-of-service opt-out.

Specifically, Staff recommended that this workshop:

1. "Discuss the feasibility of implementing the 'Puget Sound Energy Approach' model in Oregon [retail wheeling], including a review of pertinent statutes and rules submitted in comments to date.

2. "Discuss options for ensuring that both large Oregon utility programs incorporate the cessation of transition adjustments and allow large consumers to fully transition to market-based rates. This discussion is to include an examination of the relevant statutes and administrative rules, as well as a discussion of potential cost impacts."

Staff recommended a separate workshop to focus on municipal franchise fee issues raised in the docket. Retail suppliers have sought changes to ensure that direct access customers are not subject to double payment of franchise fees through their suppliers as well as base delivery rates.

Staff recommended that the franchise fee workshop:

1. "Review specific options (e.g., revenue based vs. volumetric, direct passthrough, consistent imposition of fees on ESSs [electric service suppliers]) discussed to date, including a review of the relevant statutes and administrative rules;

2. "Document the impacts of each option to each interested group: Utilities, local governments, and energy service suppliers, and customers.

3. "Select best option and next steps necessary to move forward"