UT: Regulators chop QF contract length by 25%


Utah’s Public Service Commission has granted in part and denied in part PacifiCorp’s request to reduce the term of QF contracts from 20 years to three years. Finding that neither state nor federal law requires a particular contract term, the PSC decided to reduce the contract term to 15 years. The PSC’s decision aims to balance concerns that shorter contract lengths make QF projects uneconomic with concerns that 20-year terms subject customers to fixed-price risk.

PacifiCorp has also sought to reduce QF contract terms in Idaho, Montana and Oregon.