Public Utility Regulatory Policies Act (PURPA) – Standards Consideration

Public Utility Regulatory Policies Act (PURPA)

Congress enacted the Public Utility Regulatory Policies Act of 1978 (PURPA) to promote energy conservation, efficient use of facilities and resources, and equitable customer rates.

Title I of PURPA sets forth electric utility standards for consideration by state regulatory authorities and non-regulated utilities. The Act tasked state regulatory authorities and non-regulated utilities with considering adopting the proposed standards to further the Act’s objectives.

Over the years, amendments to PURPA include additional standards related to electric utilities. CEC has considered those standards under the PURPA procedural requirements.

Currently, CEC is working to gather information on two additional standards that Congress promulgated in the Infrastructure Investment and Jobs Act in November 2021. The standards under consideration are Demand Response Practices (Demand Response) and Electric Vehicle Charging Programs (EV).

Standards Currently Under Consideration

Demand Response Practices

Each electric utility shall promote demand-response and demand-flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand. To that end, each State regulatory authority shall consider establishing rate mechanisms allowing an electric utility with respect to which the State regulatory authority has rate-making authority to timely recover the costs of promoting demand-response and demand flexibility.

EV Charging Programs

Each State shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that:

• Promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure;
• improve the customer experience associated with electric vehicle charging, including by reducing charging times for light-, medium-, and heavy-duty vehicles;
• accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles; and
• appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure.

Public Consideration

CEC’s Board of Directors is the party authorized to make the final determinations on the suitability of these standards for implementation for the membership. In considering these standards for implementation, CEC will take public comment and consider the standards in the rate advisory committee. In determining each standard, the CEC Board has the option of adopting the standard as written, adopting the standard in a modified form, or finding the adoption of the standard unnecessary or appropriate. CEC will provide a final determination in writing.

Copy of the Board Resolution on PURPA consideration

Timeline

August 1, 2023: Bend Bulletin notice advising of CEC member comment period

August 1, 2023 through August 31, 2023: Member comment period

4th Quarter 2023: Consideration of standards in rate advisory committee

4th Quarter 2023: Board review and consideration of adoption

December 31, 2023: Posting of final determination on CEC website

Initial Comments of Outside Consultant

CEC’s outside consultant on PURPA consideration prepared comments on the proposed standards.

Copy of EES Consulting comments on CEC’s Consideration of two PURPA standards

CEC’s Board will evaluate all the information provided in the process, including rate options under consideration by the rate advisory committee, before making a final determination.

Additional Information and Frequently Asked Questions

Does CEC have any demand response (DR) programs?

No. CEC currently has no Demand Response programs but considers flexible demand in rate-making and future programs.

Is CEC considering new Demand Response programs?

Yes, CEC is considering future implementation of flexible demand programs both within the Energy Services offerings and independently with emerging technologies. CEC recognizes that capacity is becoming more valuable and this may make some programs cost-effective in the future that have not been in the past. Examples of programs under consideration include Connected Heat Pump Water Heaters, Smart Thermostats, connected battery storage and Networked Electric Vehicle Charging programs.

Click here for more information on program participation

Does CEC have any policies relating to EVs or charging stations?

Yes. CEC has both incentive programs for EV-owning members and a cost-based Commercial EV rate for retail charging service of electricity as a transportation fuel.

What else is CEC doing to support EVs?

CEC supports the adoption of electric vehicles and the availability of EVs and the availability of EV charging stations through incentive programs and cost-based rate offerings.

Is CEC considering additional policies related to EV adoption and Demand Flexibility?

The growth of EVs can generate off-peak electricity loads that help flatten power supply costs over time and lower rates for all members. In addition, CEC is considering an optional whole-home EV rate available to any member with a registered EV. This rate allows for off-peak charging savings for members. The rate incentive will help meet the goals of both standards.