State PUC Action Allows Landmark County Solar Deal to Proceed
Today the Oregon Public Utility Commission (PUC) issued a decision which affirms the net metering provisions of Oregon’s utility regulations and clears the way for Multnomah County to proceed with its 1,000,000 kWh per year solar project on county rooftops. The PUC filing, (docket number DR40) brought jointly by Pacific Power and Honeywell, threatened to scuttle Multnomah County’s and many other Oregon solar projects under development. Today’s PUC ruling disposes of that filing completely.
(Read more and link to today's PUC ruling after the break)
Pacific Power and Honeywell’s PUC filing challenged a fundamental project design element that Multnomah County and other local governments, non-profits, schools, universities and churches must use in order to realistically complete solar projects. The design element is third-party ownership, a business model in use across the country, where third party developers own and operate solar energy systems, selling the power output to the building owners.
Approved by the Multnomah County Board of Commissioners on June 26, 2008, Multnomah County’s solar project is a public/private partnership with solar developer, SunEdison Inc. Three of the Multnomah County’s approximately 100 facilities will get solar installations, and the power generated will be used on site at each location.
Commissioner Cogen said: “The PUC’s decision is a victory for solar power in Oregon, a victory for the earth, and a victory for renewable energy as a cornerstone of Oregon’s future economic prosperity. I commend the PUC for their decision, and thank them for acting quickly enough to avoid harming the large number of solar projects currently in the pipeline. Multnomah County’s one-Megawatt solar project should now be able to be completed by year’s end.”
Corporations like Kohl’s and Staples have used the third-party financed net-metering for solar projects on rooftops at many of their retail locations, as have the vast majority of public and nonprofit entities with successful solar projects. This project model allows governments, nonprofits and other organizations without an income tax liability to benefit from the substantial public subsidies for solar energy, which primarily come in the form of income tax credits.
"We applaud the Oregon Public Utilities Commission (OPUC) decision affirming the ability of third parties to continue installing clean, affordable renewable energy projects for non-profit customers in the state," said Suzanne Leta Liou, Senior Policy Advocate at Renewable Northwest Project. "This decision will allow our growing solar market to blossom."
Pacific Power and Honeywell’s filing with the PUC suggested that third party financing was not permitted under Oregon’s net metering laws, and that nonprofit and government entities pursuing solar with third-party partners would need to follow Oregon’s complex Electricity Service Supplier (ESS) laws. However, today’s PUC ruling makes clear that Oregon’s ESS regulations do not apply to third-party financed net-metered solar projects, and that the existing rule framework adequately addresses all the questions raised in the filing.
Link to PUC ruling :
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Posted on July 31, 2008
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