PURPA

PURPA Update Dec. 21, 2023

During the Board of Directors meeting on Dec. 21, directors approved OPPD’s recommendation with regards to proposed Public Utility Regulatory Policies Act (PURPA) standards on demand response and electric vehicle charging programs, to continue to evaluate opportunities in these areas.

On occasion, OPPD, as a public power electric utility, is required to provide for public comment, consideration, and make determinations of, given OPPD’s past and current activities, whether to adopt proposed standards under the Public Utilities Regulatory Policy Act of 1978 (PURPA). Under the Infrastructure Investment and Jobs Act of 2021 (IIJA), two new PURPA policy standards were created.

PURPA Demand Response Standard

The first standard up for consideration requires each utility to promote the use of demand response practices by customers to reduce electricity consumption during periods of unusually high demand. A report on OPPD’s initial findings for public comment can be found here.

As amended, by the IIJA, PURPA Section 111(d)(20) directs utilities to consider for adoption the regulatory standard below:

Section 111(d)(20):
(20) Demand Response Practices
(A) IN GENERAL - Each electric utility shall promote the use of demand response and demand flexibility practices by commercial, residential, and industrial customers to reduce electricity consumption during periods of unusually high demand.
(B) RATE RECOVERY.
(i) IN GENERAL - Each State regulatory authority shall consider establishing rate mechanisms allowing an electric utility with respect to which the State regulatory authority has ratemaking authority to timely recover the costs of promoting demand response and demand flexibility practices in accordance with subparagraph (A).
(ii) NONREGULATED ELECTRIC UTILITIES - A nonregulated electric utility may establish rate mechanisms for the timely recovery of the costs of promoting demand response and demand flexibility practices in accordance with subparagraph (A).

Current OPPD resources include:

Residential Smart Thermostat

Residential Cool Smart

OPPD Rate Manual

PURPA EV Charging Program Standard

The second standard up for consideration requires that each state consider measures to promote affordable and equitable electric vehicle (EV) charging options for customers, improve the customer experience associated with EV charging, accelerate third-party investment in EV chargers, and appropriately recover marginal costs of delivering electricity to EVs and EV-charging equipment. A report on OPPD’s initial findings for public comment can be found here.

As amended, by the IIJA, PURPA Section 111(d)(21) directs utilities, like OPPD, to consider for adoption the regulatory standard below:

Section 111(d)(21):
(21) Electrical vehicle charging programs
Each State shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that:
a) Promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure.
b) Improve the customer experience associated with electric vehicle charging, including by reducing charging times for light-, medium-, and heavy-duty vehicles.
c) Accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles.
d) Appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure.

Current OPPD resources include:

Guide to EVs

Public Comment

This matter was identified on the published agenda for the OPPD Board of Director’s all-committee meeting scheduled and open to the public at 10 a.m. on Nov. 14, 2023. The public was invited to attend in person or via Webex. The public is invited to comment on these two standards in two forums. First, the public is invited to submit comments in writing through the PURPA link on OPPD’s Community Connect webpage on Nov. 14, 2023. Comments will remain open through Dec. 17, 2023. The public is invited to provide verbal comments in person or via Webex during the board’s regular meeting on Dec. 21, 2023 at 5:00 p.m. The board will make their determination based on the consideration of the PURPA amendments and the public comments submitted at this meeting.

OPPD is requesting public participation in this process through written comments in the comment submittal box below.

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