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EPSA and NIPPC Urge Oregon Commission to "prod PacifiCorp back on the track of compliance" with Oregon's Procurement Policy
In testimony today before the Oregon Public Utility Commission (OPUC), the Northwest Intermountain Power Producers Coalition (NIPPC) raised strong concerns about the anti-competitive slant of PacifiCorp's latest draft request for proposals (RFP). The RFP solicits the market for an additional 500 megawatts (MW) of energy from renewable projects to go online from 2008 through 2011. PacifiCorp also describes its own plans for a so-called "benchmark resource" in the draft document currently under review by the OPUC.
NIPPC, an affiliate of the Electric Power Supply Association (EPSA), testified that provisions of the draft RFP were anti-competitive; including a proposed requirement that would have forced a developer to sell its power plant to the utility after the power purchase agreement expired. NIPPC vigorously supported staff and Oregon's Independent Evaluator in arguing that the RFP, if adopted as proposed, would harm utility ratepayers by depriving them of access to resources developed by the most competitive independent power producers.
Robert Kahn, executive director of NIPPC said, "We urge the Commission to adopt staff's recommendations and prod PacifiCorp back on the track of compliance with the Commission's rigorous and progressive competitive procurement guidelines."
PacifiCorp's draft RFP initially required that developers sell plants to the utility for the price of $1 after the power purchase contracts expired. The RFP was amended, first, to state that developers would propose a sale price, and most recently, to provide bidders with the opportunity, but not the obligation, to propose a facility sale at the end of a power purchase agreement. According to EPSA and NIPPC the controversial clause, which likely would have compromised the ability to conduct a fair and equitable competitive procurement process, should never have been proposed in the first place.
The Oregon PUC staff has recommended that the Commission approve PacifiCorp's draft RFP as revised on July 28, 2008, with 11 conditions. Among its conditions, Commission staff proposed that PacifiCorp remove the provision giving them the right to acquire the facility at the end of a contract term, under any terms.
Speaking on the matter, John E. Shelk, president and CEO of the Electric Power Supply Association said, "This effort to oust competition is a disturbing pattern in some states and something that needs to be exposed for what it is and rejected, as the Colorado PUC did in a similar case involving a proposal by Xcel last month. A fair and open competitive procurement process allows all suppliers to compete on the same footing and ultimately results in the most effective and efficient way to meet consumers' needs and attract more renewable energy, energy efficiency and demand response programs."
EPSA and NIPPC commended the Oregon PUC staff and Independent Evaluator for seeking the change, and for its continued efforts to preserve the integrity of the state's model competitive procurement policies.
"EPSA believes competitive wholesale markets are proving the best path to achieving environmental goals, more efficient use of existing resources, additional new supply and the overall best deal for consumers given the realities of increased costs and higher demand. We are confident the competitive power sector will play an even greater role in the future," said EPSA's Shelk.
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.