Wednesday, January 13, 2021

Oregon Utility Regulators to Probe Looming Grid Reliability Question (Portland Business Journal, OR)

It’s an issue already getting attention at a regional level, but Oregon utility regulators are going to have their say on “resource adequacy” as well.

Or at least, the Public Utility Commission will look into the issue, industry vernacular for making sure the grid stays reliable under the full range of supply and demand possibilities.

It’s a planning challenge as the region transitions away from fossil-fuel resources that could be counted on to fire up and deliver power when needed.

Commissioners, in adopting a staff proposal on Tuesday to open an investigation into resource adequacy in Oregon, were careful to note that they didn’t want to step on the toes of the Northwest Power Pool.

That industry organization has been working for more than a year on a joint program for setting utility capacity obligations and sharing responsibility for getting through crunch periods. The idea is that by taking advantage of a diversity of loads and resources across the region, a reliable system can be ensured at less cost than with a siloed approach.

But who falls under the obligations, how they’re set, what value is given to particular resources, and other questions all have cost implications. And Oregon’s regulatory structure colors those questions in a unique way, leading PUC staff and stakeholders to a rough consensus that it was worthwhile for the PUC to join the fray.

The move by the PUC comes as the Oregon Legislature gears up for the 2021 session where, as it happens, a bill to establish resource adequacy requirements has already been introduced by Sen. Lee Beyer, a former PUC commissioner.