Oregon utilities would pay customers for approved grid services

Each electric company would file a customer energy program for Public Utility Commission review. The program would procure grid services from the company’s customers. The commission would have 120 days to approve, deny, or modify and approve a proposed program. The commission must consider public and stakeholder input. Companies would file their first proposed programs within 120 days after the bill takes effect.

Electric companies would offer customers payments for eligible grid services through their programs. Eligible devices would include batteries, electric vehicles, and load control devices such as smart thermostats and water heaters. Customers could enroll devices they use for personal benefit, even if a third party owns or maintains them. Customers could enroll directly or through an aggregator, which coordinates enrolled devices. Directly enrolled customers would receive upfront and performance payments; the electric company would make payments to an aggregator for customers enrolled through it. Programs would set payment terms by grid service and device type. A program could offer higher upfront payments based on energy burdens or other listed affordability, equity, or environmental justice factors. The initial programs must compensate batteries for reducing system-wide peak demand. Within 12 months after the commission approves an initial program, companies must add load control devices and electric vehicles if they were not already included.

The commission would set annual procurement targets and incentives, and electric companies would report program results each year. The targets, incentives, and reports would cover each electric company’s customer energy program. Targets would cover five-year periods and require meaningful annual increases in procured grid services. Incentives must reward meeting targets and may include penalties for missing them. Companies’ annual reports would describe enrollment, program events, device performance, and payments. Companies would file reports by January 31 each year. The bill would take effect on the 91st day after the 2026 regular session adjourns.