Oregon Renewable Portfolio Standard
2025 Compliance Report
In compliance with ORS 469A.170, Central Lincoln provides an annual report regarding its Renewable Portfolio Standard (RPS) compliance. For 2025, Central Lincoln’s RPS portfolio obligation has been completed.
Background
In 2007, Oregon enacted Senate Bill 838, the Oregon Renewable Energy Act (Act), which created an RPS that all Oregon electric utilities must follow. The purpose of the RPS is to decrease Oregon utilities’ reliance on fossil fuels for electric generation and increase their use of renewable energy sources. In 2016, Senate Bill 1547 further increased RPS targets for investor-owned utilities (IOUs) only.
The statute governing RPS compliance reporting, ORS 469A.170, states: “A consumer-owned utility shall make the report to the members or customers of the utility.” Central Lincoln reports the annual results of its RPS compliance to the Board and publishes those results on its website each year and otherwise makes this information available to its customers.
Renewable Portfolio Standard Requirements
Oregon’s RPS establishes an obligation for electric utilities, requiring that a percentage of their annual retail sales must come from qualifying renewable resources. The exact percentage required, and the year the compliance obligation begins, depends both on the size and ownership type of the electric utility, as shown below. As a consumer-owned utility serving less than 3 percent of the state’s total retail electricity sales, Central Lincoln is classified as a “Small Utility” when determining its annual obligation.
Annual Percentage Target of Qualifying Electricity by Year
| Utility Type | Size | 2011 | 2015 | 2020 | 2025 | 2030 | 2035 | 2040 |
|---|---|---|---|---|---|---|---|---|
| Investor-Owned | 3% or more | 5% | 15% | 20% | 27% | 35% | 45% | 50% |
| Large Utilities | 3% or more | 5% | 15% | 20% | 25% | 25% | 25% | 25% |
| Small(er) Utilities | 1.5% to 3% | 10% | 10% | 10% | 10% | |||
| Small(est) Utilities | Less than 1.5% | 5% | 5% | 5% | 5% |
Oregon RPS Compliance Rules
The Act defines which types of renewable generation are considered “qualifying electricity.” In general, qualifying renewable resources must have an on-line date of January 1, 1995, or later, with some exceptions. Further definition of qualifying electricity can be found in ORS 469A.010.
There are several exemptions from compliance outlined in ORS 469A.060, which can serve to reduce a utility’s RPS portfolio obligation. These exemptions ensure that the RPS does not compel utilities to procure new qualifying electricity resources to replace existing non-fossil fuel resources, or to displace Tier 1 energy procured from the Bonneville Power Administration.
Under the Act, utilities may choose to comply with the RPS financially, in lieu of retiring Renewable Energy Certificates (RECs), through the use of an Alternative Compliance Payment (ACP). The ACP rate is determined by the Central Lincoln Board as outlined in ORS 469A.185, and to the extent possible, shall be determined in a manner similar to that used by the Oregon PUC under ORS 469A.180.
To limit the impact of complying with the RPS on retail consumer rates, the Act also outlines a Cost Cap. This Cost Cap provides an upper limit on the cost for incremental actions required to comply with the Act. Further information for how this Cost Cap is defined can be found in ORS 469A.100.
Per rules adopted by the Oregon Department of Energy, generation volumes qualifying for RECs are based on values recorded and reported to the Western Renewable Energy Generation Information System (WREGIS). WREGIS is an organizational database that receives monthly generation volumes of renewable generation and serves as the regional system of record to issue, monitor, transfer, and account for RECs. One MWh of renewable generation equals one REC. The RECs have identification numbers that indicate the generation project and the month the electricity was generated.
Excepting for limitations due to Cost Caps, or the use of Alternative Compliance Payments, compliance is demonstrated by retiring a quantity of WREGIS RECs equal to the compliance obligation. Once a REC is retired in WREGIS it is no longer available to be banked, sold, or used for any other RPS program.
Central Lincoln 2025 Oregon RPS Portfolio Obligation
| Category | Calculation | Quantity | Unit |
|---|---|---|---|
| Retail Sales to Customers | a | 1,188,153 | MWh |
| RPS Target | b | 10% | Percentage |
| 2025 RPS Obligation Before Exemption | c = a × b | 118,815 | MWh |
| Generation from Exempt Resources | |||
| BPA Tier 1 Net Purchases | d | 1,218,050 | MWh |
| Non-Federal Qualifying Resources (if any) | e | MWh | |
| Total 2025 MWhs from Exempt Resources | g = d + e | 1,218,050 | MWh |
| Fraction of Retail Sales from Exempt Resources | h = min (g ÷ a, 100%) | 100% | Percentage |
| Qualifying Electricity Target After Exemption | i = min (100% − h, b) | 0% | Percentage |
| RPS Portfolio Obligation After Exemption | i × a | 0 | MWh |
Central Lincoln’s qualifying electricity target for 2025 is 10 percent of retail sales before exemptions. Under Oregon’s RPS rules, if exempt generation in 2025 exceeds 90 percent of total retail sales, then Central Lincoln can reduce the 10 percent qualifying electricity target by the amount the exempt generation exceeds 90 percent. If exempt generation exceeds 100 percent of total retail sales, then Central Lincoln’s qualifying electricity target is reduced to zero (0) percent.
As a result, Central Lincoln’s 2025 RPS portfolio obligation results in the retirement of zero (0) RECs in 2026.
Download the Report
2025 Oregon Renewable Portfolio Standard Compliance Report (PDF)
