860-038-0290 Preferential Curtailment (1) This rule becomes effective June 1, 2024. (2) Except as provided in sections (4), (8), and (9) of this rule, each electric company shall provide preferential curtailment of New Large Load Program participants, as defined in OAR 860-038-0700(2)(d), and long-term opt-out direct access consumers. (3) At the time a consumer makes its direct access election, New Large Load Direct Access Program participants and long-term opt-out direct access consumers must elect whether a given load will be curtailable or non-curtailable. A consumer that makes no such election will be deemed non-curtailable. (4) An electric company will not preferentially curtail the load of a direct access consumer when: (a) The direct access consumer has elected to be non-curtailable during the election period, or, (b) The direct access consumer’s load is infeasible to curtail, or, (c) When the preferential curtailment of a direct access consumer would negatively affect cost-of-service consumers. (5) Consumers already participating in New Large Load Direct Access Program or long-term opt-out direct access service must make the election defined in section (3) of this rule during the first annual election window that takes place at least 12 months after the date an electric company has implemented tariffs and program rules necessary to implement this rule. (6) A consumer may change their curtailment election during an election window after the length of time specified in an electric company’s tariffs implementing these rules. (7) The Commission will establish a cap on non-curtailable direct access load to protect cost-of-service customers from the risks and costs associated with direct access consumers’ return to an electric company’s system. (8) Using a Commission-approved methodology, an electric company may collect a reasonable charge from a direct access consumer to recover necessary costs for system upgrades that operationalize preferential curtailment of that consumer. Any given load that a consumer elects to be curtailable will be considered non-curtailable until the system upgrades required to curtail the load are installed, tested, and properly functioning. (9) If a preferentially curtailable consumer returns to default supply without providing the required time for notice of return under the electric company’s direct access program tariff, the electric company must make best efforts to serve the consumer with Uncommitted Supply. (10) Each electric company’s tariff or program rules will specify criteria an electric company may use to demonstrate that it sought to serve a preferentially curtailable consumer with Uncommitted Supply before curtailing that consumer. (11) If a returning curtailable consumer is served with Uncommitted Supply, the consumer will be charged the incremental capacity and energy costs or a market rate required to serve on less than the required notice of return in the electric company’s direct access program tariff. If the market rate is greater than the incremental cost of the electric company’s capacity and energy supplied to the consumer, the consumer will be charged the market rate. (12) If Uncommitted Supply is not available, the electric company may preferentially curtail returning nonresidential direct access consumers’ load that has been elected to be curtailable. (13) A preferentially curtailable consumer that returns to the electric company's service without the required notice of return under the electric company’s direct access program tariff shall be subject to potential curtailment for a period equal to the remaining time for notice of return. (14) If a non-curtailable consumer returns to the electric company’s service without the required notice of return under an electric company’s direct access program tariff, the electric company shall charge the non-curtailable consumer the incremental capacity and energy costs or a market rate required to serve on less than the required notice of return. If the market rate is greater than the incremental cost of the electric company’s capacity and energy supplied to the consumer, the consumer will be charged the market rate. (15) Individual electric company tariffs will include a process for implementing preferential curtailment and will detail eligibility criteria for consumers seeking to become preferentially curtailable. (16) Sections (13) and (14) of this rule do not limit a New Large Load Direct Access Program participant or long-term opt-out direct access consumer’s right to return from default supply to direct access unless: (a) The consumer has provided a notice of return to the electric company’s service, or; (b) The consumer remains on default supply for longer than the time period necessary to select an ESS and return to direct access service as specified in the electric company’s tariff. Statutory/Other Authority: ORS 183, ORS 756 & ORS 757 Statutes/Other Implemented: ORS 756.040 & ORS 757.600 - 757.667 History: PUC 9-2023, adopt filed 09/15/2023, effective 09/15/2023