CUB Advocates for Ways to Mitigate Economic Costs of Decarbonization
Posted on May 5, 2022 by Sudeshna Pal
Tags, Energy
Oregon gas utilities and several business groups recently challenged the state’s Climate Protection Plan. The Plan aims to reduce Oregon’s climate emissions and address the effects of climate change, particularly for communities of color, tribal, low-income, and rural communities.
Groups challenging the Plan argue that it makes natural gas scarcer over time. This will raise gas prices and harm customers, namely farmers, small businesses, and transportation. The Plan is a needed step in mitigating climate change. However, it may also increase costs for residential customers. CUB is pushing for several innovative solutions.
Utility Assistance Programs
CUB is working with regulators on next steps of the Energy Affordability Bill, HB 2475. It allows regulators to address household energy burden through bill discounts, weatherization, and other programs.
All current utility assistance programs are temporary. Permanent programs should be in place by the end of 2022. This is a much-needed step toward keeping Oregonians’ utility bills affordable.
CUB has also proposed that gas utilities look at “targeted energy efficiency” and “demand response” programs. These tools could help avoid large capital investments on gas pipelines and hence keep gas bills low. They work by reducing gas demand on cold winter days through more efficient gas appliances or controlling home heating schedules.
Targeted Energy Efficiency Programs
NW Natural already has a Geographically Targeted Energy Efficiency pilot program in place. The pilot will show if more efficient gas use can replace the need for new investments and save customers money. CUB has advocated for similar pilot programs from other gas utilities.
Demand Response Programs
CUB has raised the idea of gas demand response programs to regulators in several settings. Demand response is a way for utilities to either directly control consumer appliances or get customers to adjust their energy use during cold winter days.
Several California-based gas utilities have such pilot programs in place. They have been shown to yield bill savings for customers. While they have been more common with electric utilities in Oregon, research and experience show that gas customers can also benefit. NW Natural is planning a demand response pilot program and Avista is considering demand response options as well.
We must remove fossil fuels from our energy system to address climate change. The best way to protect customers is to recognize this and manage the transition to a low-carbon economy. The Climate Protection Plan is Oregon’s method to decarbonize over the next 30 years.
CUB continues our work to ensure Oregon’s energy customers can enjoy a clean and affordable future. That means, in part, advocating for innovative solutions to mitigate any utility bill impacts of measures like the Clean Power Plan.
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05/04/22 | 0 Comments | CUB Advocates for Ways to Mitigate Economic Costs of Decarbonization