OAR 330-118-0055: Disposition of Steam and Electricity

(1) An agency is not obligated to sell any or all of a project’s energy, power, steam, or any other energy form. (2) If an electric or gas utility which serves the project’s domicile has responded according to OAR 330-118-0030(3) the agency shall initiate an auction for the sales of the electric output or steam which the utility has expressed interest in acquiring. The auction shall be open to all potential buyers of the energy and solicit bids. Upon evaluation of bids, and with consultation with the Department, the agency may select buyer(s) for contract negotiations. The agency reserves the right to reject all proposals. If an agency determines that negotiations are at an impasse, it may terminate negotiations and select another buyer. If an agency judges an offer from an electric or gas utility which serves the project’s domicile to be of equal merit to the highest ranking offer, the utility’s offer shall be deemed a match and be selected for contract negotiations, all else equal. Upon written notice from the agency at the close of the auction the electric and gas utilities which serve the state facility where the project is domiciled shall have the right to match the best offer available to the agency for a period of 30 days. The agency may use competitive negotiations to select the best offer. The utility will have the right to match the best offer whether or not competitive negotiations are used. Should two utilities which serve the project’s domicile be judged to have the highest ranking offers, the agency may select either one. Criteria for selecting buyers of steam and electricity shall include: (a) Transaction costs; (b) Risks retained by the agency; (c) Term; and (d) Impact on estimated net savings over the life of the project. (3) Nothing in these rules impairs an agency’s rights under any other provisions of law including rights to market energy from qualifying facilities according to ORS 758.505–758.555 and the implementing rules and orders of the Oregon Public Utility Commission, and 18 CFR 292 et. seq. Nothing in these rules affects any authority, including the authority of a state agency or a municipality to regulate utility service or the development and use of electricity, gas or steam.