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August 31, 2005

The cheapest power is the power you conserve: Meet the Fair & Clean Energy Coalition

The Seattle Times ran a piece last week positing the question of what it would be like to have to provide energy for two more cities the size of Seattle in the Northwest Region. The answer, you find, in reading the article "Energy conservation: using less to do more" is that we don't have to go there (what a relief!), because that is the amount of energy the Northwest has conserved in the past 20 years.

CUB has been actively involved in conservation efforts that have contributed to the two cities' worth of energy that does not need to be produced. Much of this work has been done through our membership in the Fair & Clean Energy Coalition (FCEC), and the leadership of CUB's Organizing Director, Jeff Bissonnette, in pulling the coalition together. We'd like to introduce you to FCEC, if you're not familiar with their work.

FCEC arose out of a nationwide push for electricity industry deregulation that occurred in the mid- to late-90s. When Enron purchased Oregon's largest electric utility, Portland General Electric (PGE) in late 1996, they almost immediately carried a proposal to the Oregon Public Utility Commission (PUC) to deregulate Oregon's electricity market. Their proposal contained no provisions for some of the programs most important to Oregonians, such as conservation, low-income assistance programs, and rate regulation. So CUB, along with a handful of other groups such as OSPIRG, Renewable Northwest Project, AARP, Community Action Directors of Oregon, the NW Energy Coalition, the Oregon Solar Energy Industries Assoc., and the Oregon Energy Coordinator Association, sprang into action.

This group of public interest organizations began meeting and hammering out agreement on the principles that should form the basis for an alternative to Enron's deregulation scheme. We decided that a restructuring plan that allowed large industrial customers to purchase market power was acceptable, as long as residential and small business customers retained the stability of PUC-regulated electric rates. In addition, the groups agreed that advocating for fair rates for customers and a clean electricity system was of paramount importance. Thus, the Fair & Clean Energy Coalition was born.

After a great deal of advocacy, education, and organizing work throughout 1997 and 1998, in 1999 FCEC was instrumental in the Oregon Legislature's passage of SB 1149, the Energy Restructuring Act. This law gave the large industrial and commercial customers the direct access to an open energy market they had been calling for, and at the same time guaranteed that residential and small business customers would be protected by PUC regulation of electric rates and services.

SB 1149 provided for: 1) the Portfolio Options, giving customers the choice of basic cost of service electricity, or electricity that included power from renewable sources; 2) $10 million per year set aside for low income energy assistance; and 3) three percent of utility revenue being directed to energy efficiency and renewable energy programs. The independent non-profit organization that CUB and FCEC proposed for these renewable and conservation efforts, and that was approved by the PUC, became the Energy Trust of Oregon which opened its doors in 2002.

By creating the Energy Trust of Oregon, we took conservation programs out of the hands of the utilities and thereby defused an inherent conflict of interest on the part of the utilities (who sell the power and have an interest in promoting its use rather than deterring it). In its first 2 years of operation, the Energy Trust is estimated to have saved and generated enough electricity from renewable sources to power 17,000 homes, with an environmental benefit equivalent to 24 million miles not driven and 11,000 tons of air pollution offset.

The portfolio options offering renewable power have also been hugely successful. In states like Pennsylvania where deregulation is viewed as "working," it took 5 years and hefty consumer discounts in power cost to achieve the level of participation that Oregon residents achieved after only two years, without discounts, immediately following an energy crisis! For us, this underlines the fact that Oregonians care deeply about the issue of clean energy and a clean environment.

The Low Income Energy Assistance program has also been well-run and much-needed. Although we know that not everyone who has a need for utility bill assistance is having that need met with the funds available, we still are deeply grateful for the funds that are present through this program. They have helped thousands of Oregon families through hard times.

FCEC has taken an active role throughout the process of developing the particular programs that grew out of its initial work on the Energy Restructuring Act. It has contributed members to the Portfolio Options Committee set up by the PUC to oversee PGE and PacifiCorp's Portfolio Options programs. It has been active in the structuring and governance of the Energy Trust, and it has had influence in the administration of the $10 million per year that goes to help low income families pay their electric bills.

So the next time you hear about conservation in the Northwest, about the cities we don't have to power because that demand has been met through conservation, think of CUB and our work with the Fair & Clean Energy Coalition. It's one of the reasons we're here.

Associated Websites:
www.energytrust.org
www.ospirg.org
www.aarp.org/states/or
www.nwenergy.org
www.cado-oregon.org
www.oseia.org
www.oeca.info

Posted by Oregon CUB at 04:10 PM | Comments (0)

August 19, 2005

Commission Announces New Law Protecting Domestic Violence Survivors

Here is the Oregon Public Utility Commission Press Release announcing the law passed by the Oregon Legislature (and advocated for by CUB and other advocacy groups) during the 2005 Session, a law that will help protect those leaving abusive situations by ensuring them access to telephone service. CUB congratulates our Organizing Director, Jeff Bissonnette, for his hard work over the course of two sessions in working on the passage of this bill.

Commission Adopts Temporary Rules for Victims of Domestic Violence

August 16, 2005

Salem, OR - Effective September 1, 2005 those at risk of domestic violence will not have to worry about having their basic phone service disconnected for unpaid bills.

Today the Oregon Public Utility Commission adopted temporary rules to allow those at risk of domestic violence to go on a payment plan instead of having their service cut off.

Senate Bill 983, which was passed in the recently concluded legislative session, directs the Oregon Public Utility Commission to establish a program that bars local phone companies from disconnecting service if it would significantly endanger a person who is at risk of domestic violence or unwanted contact. It also applies to disabled or elderly individuals at risk of abuse or a victim of stalking.

Clark Jackson, the manager of Consumer Services for the Commission said, "The new program is very similar to our existing emergency medical certificate program, so we will gladly assist the utilities in establishing this new program."

The legislation requires telecommunications utilities to establish procedures for receiving affidavits from customers at risk of domestic violence or abuse. The customer must submit a court issued restraining order with an affidavit to the utility.

SB 983 does not excuse the customer from paying their telephone bill. The law allows the customer to enter into a reasonable payment agreement with the utility if there is an overdue balance.

The Commission expects to have permanent rules in place by February 27 of next year when the temporary rules expire.

--30--

Posted by Oregon CUB at 01:57 PM | Comments (0)

August 16, 2005

PacifiCorp Rate Case Coming to a Close

Pacificorp is Oregon's 2nd largest electric utility, and under Scottish Power's ownership, has been Oregon's most aggressive utility with filing for rate increases. UE 170, Pacificorp's current rate case, which will decide rates starting in October of this year, is wrapping up after months of work (CUB has put in close to 500 hours, with 2 rounds of expert testimony, settlement conferences, a hearing, three rounds of legal briefs, and oral argument just yesterday).

PacifiCorp, which ratepayers know by its operating name, Pacific Power, has asked for a $102 million increase, or about 12% above current rates. During settlement conferences, CUB and other customer groups were able to successfully knock off about half of the requested increase, down to $50 million. Two main issues remain to be decided:

1) Taxes: First and foremost is the question of whether the Commission will decide to set rates by looking at interest deductions likely to be filed by PacifiCorp's holding company (PacifiCorp Holdings, Inc.), or whether to set rates "blindly" without taking into account known tax loopholes. Depending on how the Commission decides the tax issue, $15 million will either stay in the pockets of ratepayers or will go to enrich the shareholders of PHI.

2) RVM: Large industrial customers have more freedom than residential customers when it comes to choosing a power source. They can obtain "direct access" to the power they need, choosing to side-step their local utility provider and buy electricity on the open market. Because of this direct access program, PacifiCorp wants the right to re-evaluate their power costs each year (this is the Resource Valuation Mechanism or RVM), and - here's the kicker - the Company wants to apply this yearly RVM to residential customers. This could mean small increases in power costs for residential ratepayers every year, even though the direct access the RVM serves does not even apply to residential ratepayers! CUB feels that this request is basically unfair. Our message on RVM is, "Do whatever you want with the RVM, but don't raise our rates for a direct access system we can't use."

Of the two issues facing us in this case, the most important is the tax issue. Not only would winning the tax issue cut the requested increase down even farther, from the original 12% to about 4%, but it would also set a valuable context for upcoming legal challenges to SB 408, the Utility Tax Reform Bill which CUB helped get through the Legislature this session.

The Tax Reform Bill goes into effect January 1, 2006, but even independent of that bill, we feel that it's important for the Commission to stand up to the practice of phantom taxation. Knowing that PacifiCorp's holding company is eligible for certain interest-based tax deductions, we say that information should be included in the ratemaking process, so that customers don't wind up paying taxes that PacifiCorp then keeps.

The surcharge from the 2001 power crisis has recently expired and customers have seen power bills going down by about 6%. This means that, should we win our case and hold PacifiCorp's rate increase down to about 4%, your utility bill would still be lower than it was last year. Here's hoping!

Posted by Oregon CUB at 02:23 PM | Comments (0)

August 05, 2005

Legislature finally finds its way to adjournment - CUB comes out with wins

The 2005 session of the Oregon Legislature finally ended at 6:20 am this morning. Once it lasted into the early morning hours of Friday, it gained the dubious honor of being the second longest session in state history, lasting 208 days.

Despite several threats to utility ratepayers, the session resulted being a net positive for consumers. Here is a list of CUB victories won with the help of our ever-active membership:

* Passage of SB 408, the utility tax bill: SB 408 passed with widespread approval in the last days of the legislature. The bill gives policy direction to the Public Utility Commission to ensure that the taxes utilities collect as part of our rates are closely aligned with the taxes they actually pay to governmental entities. The utilities pulled out all the stops to defeat the bill but to no avail. There are still threats of legal challenge. As the session came to an end, the bill was headed to the governor's desk for approval. Indications were that he would sign the bill.

* Passage of SB 983, the domestic violence survivors' telecommunications bill: SB 983 ensures that survivors of domestic violence will have access to basic telephone service. When a domestic violence survivor leaves an abusive relationship, it is often difficult for her to get phone service, either because of lack of credit in her own name or a large outstanding bill from a joint account with a former partner. SB 983 creates a system of "judicial certification" that allows survivors to demonstrate that being without phone service would present a significant danger, as defined by several existing laws. CUB worked with Womenspace, a domestic violence agency in Eugene, as well as the Lane County Domestic Violence Council to pass this bill.

* Passage of HB 3363, the energy efficiency standards bill: HB 3363 establishes standards for 11 commercial and residential products. The standards will ensure that certain products, such as commercial washing machines, ice makers, torchiere lamps and others, will have to meet specific criteria in order to be sold or installed in Oregon. These standards will save tremendous amounts of energy and water over the next 20 years.

* Passage of SB 733/SB 31, the restructured solar energy tax credit: Working with the Oregon Solar Energy Industries Association (OSEIA), CUB proposed to restructure an existing solar tax credit for residential customers. Originally introduced as SB 733, the proposal was to allow residential customers to install larger solar electric systems than they are able to currently. Customers can now install sytems up to 2000 watts and receive up to $6,000 in tax credits over four years. OSEIA believes that Oregon's solar industry will benefit and CUB believes residential customers will too. By the end of the legislative session, the language from the original SB 733 was included in SB 31, which was one of the final bills that finally passed the legislature.

* Veto of SB 671, the Oregon Mutual Utility Bill: SB 671 was one of two bills that proposed a possible future ownership plan for Portland General Electric. Dubbed the Mutant Utility Bill by CUB, its proponents did not outline any sort of governance structure or accountability measures for the new entity. Despite the strenuous objections from customer groups, including CUB, the bill passed both the Oregon Senate and the Oregon House and was sent to the Governor. Thankfully, the Governor listened to customer groups and vetoed the bill.

* Veto of SB 1008, the Oregon Community Power Bill: SB 1008 was a bill that outlined a state-chartered public corporation to purchase and operate Portland General Electric. It was a bill that CUB helped write and in the end, moved to oppose. Our opposition sprang from a section of the bill that outlined the new entity's rights to benefits from the federal hydroelectric system. Essentially, the bill prevented the customers of the new Oregon Community Power from getting benefits they are currently getting, which could have led to a power cost increase of up to 15% for residential customers. This was unacceptable to CUB. While the language was part of the bill as it passed the Senate in May, CUB decided to continue to support the bill in hopes that there would be further discussion in the House. However, there was no discussion and CUB withdrew its support for the bill. When the legislation went back to the Senate, the bill's sponsor refused to force further discussion on the issue of federal power benefits and sent the bill to the Governor. The Governor had already expressed "serious reservations" about the bill and CUB worked to convince him to veto the bill, which he did.

* No threats to public purpose funding for energy efficiency and renewable energy: In the past few sessions, CUB has spent a great deal of time making sure that funds collected from ratepayers for energy efficiency and renewable energy investments were actually spent on those critical areas. This session, however, it was very quiet on this front, which was a relief. But next session promises to be much more active in this area as CUB's Fair and Clean Energy Act - passed in 1999 - is up for review. You can be sure that CUB, working with a wide array of public interest allies, will be working to protect consumer dollars that both keep rates low and protect Oregon's environment.

You can track the progress of many of the above bills that CUB worked on in our Current News section of the website.

Posted by Oregon CUB at 06:38 PM | Comments (0)

August 01, 2005

Legislature approves SB 408 - the utility tax bill

It's been a busy couple of days for SB 408, the bill that CUB helped write and has been strongly supporting to make utilities more accountable for the taxes they collect as part of rates.

On Saturday, July 30, the bill was passed by the Oregon House by a remarkable vote of 54-6. And earlier today, the Senate agreed to accept the minor amendments made by the House and repassed the bill on a unanimous 30-0 vote. SB 408 now goes to Governor Kulongoski for his signature. While the Governor has not indicated definitively whether he will sign the bill or not, CUB believes that he will acknowledge the importance of this issue and defend customers. Please feel free to contact the Governor and urge him to sign SB 408 by calling him at 503-378-4582.

Posted by Oregon CUB at 01:58 PM | Comments (0)