OAR 860-027-0310
Cost-Effective Conservation Resources

(1)

As used in this rule:

(a)

“Conservation” means any reduction in electric power or natural gas consumption as the result of increases in efficiency of energy use, production, or distribution. Conservation also includes cost-effective fuel switching;

(b)

“Fuel switching” means any substitution of one type of energy or fuel for another; and

(c)

“Cost-effective” has the meaning given that term in OAR 860-030-0010 (Cost Effectiveness). However, the cost-effective level for fuel switching shall not include the 10 percent cost advantage specified in OAR 860-030-0010 (Cost Effectiveness)(6)(b).

(2)

The Commission encourages energy utilities to acquire cost-effective conservation resources. Energy utilities may apply for Commission approval of programs designed to promote the acquisition of cost-effective conservation resources. Programs in this context consist of accounting and rate-making mechanisms designed to provide an energy utility with incentives, to remove disincentives, or to acquire such resources. The Commission adopts the following policies for evaluating programs proposed by energy utilities:

(a)

Incentive:

(A)

Least-Cost Resources: Acquisition of least-cost resources should be the energy utility’s most profitable course of action. An energy utility should have an incentive to acquire all least-cost resources, but it should not have an incentive to pursue conservation past the point at which it is no longer cost-effective. An energy utility should not be expected to pursue a course of action that involves an identifiable and sustained loss of profits. The most important criterion for evaluating an incentive program is its effect on the energy utility’s resource acquisition strategy. Incentive programs under which the energy utility can earn higher profits by acquiring resources which are not least-cost resources need not be considered, no matter how well they may suit the other criteria.

(B)

Cost Minimization: An energy utility should have the incentive to acquire any resource at the minimum total cost. The set of incentives given the energy utility should not merely influence the choice of which resource to acquire, but the manner of its acquisition as well.

(C)

Strategic Manipulation: An energy utility should not have incentives to manipulate the program strategically.

(b)

Predictability: Program impacts should be predictable to all participants.

(c)

Simplicity:

(A)

Administration: The program should be as simple as possible to administer, consistent with the need to determine actual results.

(B)

Implementation: The program should be understandable to affected parties.

(d)

Impact:

(A)

Balance: Risks and rewards should be distributed fairly between stockholders and customers. Fair treatment of these groups relative to each other may require a balancing of rewards with penalties; if shareholders are rewarded for good performance, they should also be penalized for poor performance.

(B)

Cross-subsidization: Cross-subsidization of participants by nonparticipants should be minimized.

(C)

Rate pressure: Incentive programs should be as consistent as possible with the Commission objective of promoting rate stability.

(e)

Tradeoffs: In developing cost-effective conservation programs, energy utilities may balance the emphasis given to each policy listed above. Greater focus on one policy may come at the expense of another policy, if the whole proposal is reasonable.

Source: Rule 860-027-0310 — Cost-Effective Conservation Resources, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=860-027-0310.

860–027–0000
Applicability of Division 27 860–027–0001
Definitions for Utility Budgets, Finance, Accounting, and Annual Reports 860–027–0005
Utilities Required to File Reports 860–027–0015
New Construction Budget 860–027–0016
Accounting for Director’s Fees 860–027–0020
Form and Filing of Applications 860–027–0025
Applications for Authority to Sell, Lease, Assign, Mortgage, Merge, Consolidate or Otherwise Dispose of or Encumber its Property, or to Acquire Stock, Bonds, or Property of Another Utility 860–027–0030
Application by an Energy or Large Telecommunications Utility for Authority to Issue Stocks, Bonds, Notes, or Other Securities 860–027–0031
When the Commission May Reregulate Financings of Exempt Telecommunications Utilities 860–027–0032
Information Required Concerning Financings of Exempt Large Telecommunications Utilities 860–027–0035
Applications by a Utility for Authority to Guarantee Indebtedness 860–027–0040
Applications for Approval of Transactions Between Affiliated Interests 860–027–0041
Information Required for Utility Goods or Services Provided to Affiliated Interests 860–027–0042
Timeliness of Application Made Under OAR 860-027-0040 and Filings Made Under OAR 860-027-0041 860–027–0043
Application for Waiver of Requirements Under OARs 860-027-0040 and 860-027-0041 860–027–0044
Application for Waiver Requirements by Large Telecommunications Utilities Under OARs 860-027-0040 and 860-027-0041 860–027–0045
Uniform System of Accounts for Electric Utilities — Major and Nonmajor 860–027–0048
Allocation of Costs by an Energy Utility 860–027–0050
Uniform System of Accounts for Large Telecommunications Utilities 860–027–0052
Allocation of Costs by a Large Telecommunications Utility 860–027–0055
Uniform System of Accounts for Gas Utilities — Major and Nonmajor 860–027–0065
Uniform System of Accounts for Steam Heat Utilities — Class A, B, and C 860–027–0070
Annual Report Requirements for Electric, Gas, Steam Heat, and Large Telecommunications Utilities 860–027–0100
Reporting of Affiliated Transactions 860–027–0120
Preservation and Destruction of Records 860–027–0175
Energy Utility Reporting Requirements Relating to Major Shareholders 860–027–0200
Energy Utility Acquisition 860–027–0300
Use of Deferred Accounting by Energy and Large Telecommunications Utilities 860–027–0310
Cost-Effective Conservation Resources 860–027–0350
Depreciation Study Requirements for Energy Utilities 860–027–0400
Integrated Resource Plan Filing, Review, and Update
Last Updated

Jun. 8, 2021

Rule 860-027-0310’s source at or​.us