Oregon Administrative Rules › Chapter 860 - PUBLIC UTILITY COMMISSION › Division 29 - REGULATIONS RELATED TO AGREEMENTS BETWEEN ELECTRIC UTILITIES AND ELECTRIC COGENERATION AND SMALL POWER PRODUCTION FACILITIES › Section 860-029-0120 - Standard Power Purchase Agreements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Each public utility must offer standard
			 power purchase agreements to eligible qualifying facilities. Each public
			 utility must submit all forms of standard power purchase agreements to the
			 Commission for approval.
(2)
			 Qualifying facilities have the unilateral right to select a purchase period of
			 up to 20 years for a standard power purchase agreement. Qualifying facilities
			 electing to sell firm output at fixed prices have the unilateral right to a
			 fixed-price term of up to 15 years, subject to the reduction specified in
			 section (6) for a development period that exceeds three years. In addition, the
			 fixed-price term continues to run during the cure period should the qualifying
			 facility fail to meet the scheduled commercial operation date. Qualifying
			 facilities may also select a nonfixed-price term of up to five years to run at
			 the conclusion of the fixed-price term.
(3) The development period of a standard
			 power purchase agreement begins on the Effective Date, unless the start of the
			 development period is delayed by the initiation of the Network Upgrade cost
			 allocation process in OAR 860-029-0044. The development period ends at 24:00 in
			 the time zone in which the qualifying facility is located on the day before the
			 scheduled commercial operation date specified in the standard power purchase
			 agreement or such earlier date on which the qualifying facility achieves the
			 commercial operation date in compliance with these rules.
(4) The purchase period of a standard power
			 purchase agreement begins on the earlier of the commercial operation date or
			 the scheduled commercial operation date. The scheduled commercial operation
			 date may be delayed by Force Majeure, extended by agreement of the purchasing
			 public utility and the qualifying facility or modified under subsection (5)(b)
			 or section (6) of this rule. In these cases, the purchase period and fixed
			 price term commence on the earlier of the commercial operation date or the
			 delayed or extended scheduled operation date.
(5) A qualifying facility may specify a
			 scheduled commercial operation date for a standard power purchase agreement
			 subject to the following requirements:
(a)
			 Anytime within three years from the date of agreement execution;
(b) Anytime within five years from the date
			 of agreement execution. If the qualifying facility can, utilizing the process
			 specified in section (6), provide an interconnection study by the purchasing
			 utility showing that the time it will take the purchasing utility to complete
			 the interconnection to the qualifying facility necessitates a commercial
			 operation date longer than three years from the Effective Date, then the
			 additional time necessitated by the interconnection up to an additional two
			 years will not be taken off the period of the fixed-price term. Under other
			 circumstances, the additional time will be taken off the period of the
			 fixed-price term; or
(c) In any
			 standard power purchase agreement with a scheduled commercial operation date
			 more than three years after the Effective Date, except as specified otherwise
			 in these rules, the fixed-price term will be reduced one day for every day of
			 the development period after three-year anniversary of the Effective date, with
			 the reduction taken from the end of the fixed-price term. Example: A standard
			 power purchase agreement with a development period of three years and six
			 months will have a fixed-price term of 14 years and 6 months. The fixed-price
			 term will begin on the scheduled commercial operation date and will end after
			 14 years and 6 months.