Calpine Energy Solutions LLC v. PUC

Pursuant to ORS 757.210, "the PUC ‘may not authorize a rate or schedule of rates that is not fair, just and reasonable.’” ORS 757.210(1)(a).

Calpine Energy Solutions, LLC (Calpine) appealed the Public Utility Commission of Oregon’s (PUC) approval of an opt-out fee charged by PacifiCorp, dba Pacific Power, (PacifiCorp). Calpine assigned error to PUC’s finding that the scheduled rate increases by PacifiCorp’s opt-out charges were reasonable. On review, Calpine argued PacifiCorp failed to prove that fixed generation costs—the basis for calculating the opt-out charge—could be reasonably assumed to increase at the rate of inflation. In response, the PUC argued the opt-out charge was a conservative estimate because it only offsets loss from fixed generation costs despite “other costs” increasing over time. Pursuant to ORS 757.210, "the PUC ‘may not authorize a rate or schedule of rates that is not fair, just and reasonable.’” ORS 757.210(1)(a). The Court, recognizing PacifiCorp bore the burden of providing substantial evidence that their rates were reasonable, found PacifiCorp’s evidence lacking. The Court reasoned PacifiCorp’s only evidence was the statements of one witness, who testified the rate calculation was conservative because “other costs” increase over time.

Reversed and Remanded.