Gas Utilities Sue to Avoid Reducing Emissions
Posted on March 24, 2022 by Bob Jenks
Tags, Energy, General Interest
Oregon’s three gas utilities have filed suit to avoid reducing greenhouse gas emissions through the Climate Protection Program. NW Natural, Avista, and Cascade Natural Gas are suing together to prevent one of the strongest climate programs in the country from going forward.
The Climate Protection Program is a new program within Oregon’s Department of Environmental Quality. It is designed to reduce the state’s greenhouse gas emissions by 50 percent by 2035 and 90 percent by 2050. It applies to suppliers of fossil fuels and large industrial facilities.
The Oregon Citizens’ Utility Board (CUB) criticizes the gas utilities for suing the State of Oregon rather than prioritizing the reduction of greenhouse gas emissions in Oregon and complying with climate regulations.
The Gulf Between Marketing and Reality for Gas Utilities
The Climate Protection Program will be a challenge for natural gas utilities, threatening their bottom line. Natural gas (methane) is a fossil fuel. Reducing natural gas emissions by 50 percent by 2035 is a huge challenge. Nonetheless, gas utilities seek to continue expanding the natural gas system in Oregon and adding thousands of new customers each year.
Oregon’s gas utilities have been widely marketing their support of environmental stewardship and decarbonization goals. In fact, all three recently released statements touting their commitment to a greener future. But if their suit is successful, these utilities will prevent landmark climate action and keep polluting our climate with methane emissions.
“Gas utilities talk a good game about their commitment to reducing carbon emissions. But they continue to invest millions in expanding their pipelines and increasing their emissions every year,” said Bob Jenks, CUB Executive Director. “This suit demonstrates the wide gulf between their rhetoric and their reality.”
The Risk for Customers
CUB is concerned that the lawsuit increases economic risk to customers. Sooner or later there will be carbon regulation on the gas industry. While these utilities invest more millions in new pipelines, the cost of future regulatory compliance rises. And the longer gas utilities push off this problem, the higher the bill will be for customers down the road.
As Oregon transitions to clean electricity, many customers will choose to switch from gas to electric appliances. Customers who cannot switch - specifically low-income households - may be left with ballooning costs as the gas system is funded by a shrinking customer base.
The Climate Protection Program Means a Massive Shift for the Gas Industry
The Climate Protection Program is designed to significantly reduce greenhouse gas emissions in Oregon consistent with the state’s preexisting targets.
Meeting these goals may require a shift to highly efficient heat pumps to heat and cool the homes of many Oregonians. Electric heat pumps can heat and cool buildings and water more efficiently than gas heaters with fewer emissions. Many stakeholders see electrification of these and other gas appliances as critical to this effort.
CUB will be working with utilities and regulators to ensure that we can meet the Climate Protection Plan requirements. We will also ensure that Oregonians have affordable access to lights, heat, cooling, and transportation.
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03/23/22 | 3 Comments | Gas Utilities Sue to Avoid Reducing Emissions