CUB Opposes Pipeline Expansion Through Bend

This year, gas companies are trying to expand a natural gas pipeline through Bend. CUB is concerned about this large investment’s impact on Cascade customers’ bills and the utility meeting emission reduction requirements. CUB recently urged the Federal Energy Regulatory Commission not to approve this new pipeline expansion.

CUB’s Concerns about Cascade Gas’s Pipeline Expansion

• Cascade needs to reduce emissions to meet state and local climate regulations
• New policies are poised to decrease demand for gas, not increase it
• This investment could harm customers, especially low-income renters, in the long run

A Gas Transmission Northwest XPress pipeline expansion would be bad for Oregon and risky for customers.

Cascade Needs to Reduce Emissions, Not Add More

Natural gas is mostly methane, a highly potent greenhouse gas. Investing in this pipeline expansion would increase Cascade’s emissions, against the goals of new climate regulation.

Oregon is Requiring Gas Utilities to Reduce Emissions
Oregon gas utilities must follow the rules of the state’s Climate Protection Plan. This policy requires Cascade to reduce its greenhouse gas emissions by 50% by 2035 and 90% by 2050.

Expanding a pipeline only makes sense if Cascade is going to continue adding customers. With these state climate regulations, Cascade has to hit emission reduction targets for its existing customers. This means it will also have to cut all of the emissions from any new customers added to the system. Quickly, these new customers will drive up the bill for meeting climate regulations whose costs will be passed to customers.

Policies Favor Going Electric, Not Expanding Pipelines

Federal Government Encouraging Going Electric
The Federal Government has adopted a policy of electrification of buildings. The Inflation Reduction Act will provide tax credits for electric heat pump appliances to replace gas furnaces, water heaters, dryers, and stoves. These federal subsidies for going electric will reduce the demand for natural gas in Oregon.

Oregon households and businesses are being encouraged to use less gas. Expanding the gas system does not make financial sense for Cascade at this time.

Oregon Cities are Banning New Gas Hookups
Local communities in Oregon are developing their own Climate Action Plans with emission reduction requirements. The City of Bend—the largest municipality in Cascade’s Oregon service territory—has adopted a plan to reduce emissions by 40% by 2030 and 70% by 2050.

Communities with Climate Plans are looking for ways to reduce emissions consistent with their community goals. Two local communities in Oregon, Eugene and Milwaukie, have passed ordinances to ban the expansion of new gas hook-ups in their communities. Based on its Climate Action Plan, it would not be surprising to see Bend adopt a similar ordinance.

Rejecting the Pipeline: Protecting Customers from Bill Increases

Is This Even a Necessary Investment?
Every few years, Oregon utilities have to file a long-term planning document to state regulators. This details what mix of fuels, infrastructure, and more the utility will use to meet the expected demand of customers. Since the last time Cascade filed its plan, there have been a lot of changes in Oregon’s utility landscape.

CUB is concerned Cascade is trying to expand its system without knowing how these changes will impact the need for more gas. Cascade needs to complete a new resource plan to reflect the impact of new climate policies. Until then, growth-related investments - including this pipeline expansion - should be avoided.

As Customers Go Electric, Those Left Will Foot the Bill
CUB is concerned that there is potential for a shrinking gas system as many people electrify. This will leave fewer customers behind to pay for the costs of the system. Many renters do not control heating systems and low-income customers often cannot afford the cost of electrification. Ultimately, remaining customers will be required to pay for this new pipeline for decades.

Cascade’s residential customers already saw their rates increase by more than 28% last November and can’t afford to pay for unneeded expansion. We should not be asking those with the least financial resources to pay more in the long run for unnecessary expansions of the gas system.

CUB Opposes the Gas Transmission Northwest XPress Project

CUB is concerned that Cascade has not presented adequate analysis to justify the need for expanding the Gas Transmission Northwest pipeline. Federal regulators approving the project would place an inappropriate level of cost and risk on Cascade’s Oregon customers.

An investment of this magnitude should only be made after Cascade has presented adequate analysis to justify the enormous cost to customers. That analysis also must be vetted by the Oregon Public Utility Commission. CUB believes this massive investment creates undue risk for Oregon utility customers. This pipeline expansion should be rejected by the Federal Energy Regulatory Commission.

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