Holding PGE Accountable for Safe, Renewable Energy
Posted on August 17, 2023 by Charlotte Shuff
Tags, Energy, General Interest
This spring, Portland General Electric (PGE) is asking regulators to approve a new bill increase for customers. At $338 million, this is the largest request in over 20 years. PGE’s request includes new investments in utility infrastructure and adjustments for increased power costs.
CUB has been investigating and we have found some concerning requests from PGE. As we transition to clean, renewable energy, our utilities must be investing in safe, efficient options. Unfortunately, PGE has not met those standards. CUB is asking the Public Utility Commission to reject a $1 million capital investment from PGE’s rate increase related to issues at Oregon’s largest wind facility.
Read More: PGE Files for Largest Bill Increase in 20 Years (CUB Blog)
Holding PGE Accountable for Safe, Renewable Energy
The Oregonian reported in 2022 that PGE’s flagship wind farm faced significant safety issues. In one instance, a blade from a wind turbine detached and hit the ground. These issues stemmed from poor safety practices, not an issue with wind energy.
Now, PGE is attempting to request customers to pay for a nearly $1 million project related to fixing these safety issues. Because utilities are allowed to collect additional profits on capital projects, like this one, the final price tag for customers would be $2 million over the life of Biglow.
CUB believes that because the repair costs came from poor management by the utility, it is not customers’ responsibility to pay for the utility’s mistakes. We are asking that regulators not allow PGE to collect money for this project from customers.
PGE Safety Issues
In February 2022, a blade fell off a turbine at the Biglow wind facility in Sherman County, Oregon. PGE calls this issue “blade liberation” which is a silly industry name for an incredibly serious issue. As Oregon continues to invest in renewable energy, we need to make sure that those tasked with operating the facilities are held accountable.
PGE is responsible for maintaining this facility. Large capital investments are financed by PGE’s shareholders. For Biglow, Portland General Electric receives millions of dollars each year from customers to maintain and operate each of its energy facilities. Having a safety issue of this magnitude is not normal.
Although customers have held up their end of the bargain—paying millions of dollars a year for regular maintenance costs—PGE has not. Customers should only be paying for utility costs that are reasonable and economical. Having a blade fall off a turbine is not reasonable. And asking customers to pay for poor management associated with a wind turbine is not reasonable.
PGE should not be allowed to ask customers to pay for their mistakes. The utility must be held accountable and pay the additional cost of mismanagement from shareholders’ money.
Planning for the Clean Energy Future
As we move forward with Oregon’s clean energy goals, we need our utilities to plan appropriately. We need reliable wind energy to meet our climate goals. And we need PGE to hold up its end of the bargain.
With electric utilities making plans to meet 100% clean electricity by 2040, there will be many new investments in renewable energy. We need to make sure that our utilities are maintaining older facilities, like Biglow. The older investments are still a vital piece of the clean energy future.
This year, PGE also submitted its Clean Energy Plan, showing how it will meet 100% clean requirements. The utility’s plan includes a tripling in the number of renewable facilities serving PGE’s customers. Each of these new investments comes with a cost for customers—and a major profit incentive for PGE. Because utilities are allowed to make a profit on their capital investments, we need to be careful in scrutinizing new projects.
Read More: Creating the Path to Clean Energy (CUB Blog)
Oregon deserves utilities that are well-run, safely operated, and working toward our climate goals. As we move forward with the clean energy transition, CUB will continue to keep a close eye on utility spending to ensure that customers get the value they’re paying for.
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08/17/23 | 0 Comments | Holding PGE Accountable for Safe, Renewable Energy