Moving Away From Coal and Towards Sustainable Investments

The utility projects we invest in today will determine Oregon’s energy mix for the coming decades, even the next century. These investments are long-term commitments that affect ratepayers for years to come.

Of all regions in the US, the Pacific Northwest understands the benefits of long range planning. The Bonneville and Grand Coulee Dams were built with federal funding in the 1930s, and nearly a century later they are an integral part of the Pacific Northwest’s electrical mix. We continue to benefit from these investments today, with hydroelectric power providing the region with more than half of our electricity. These massive projects were expensive upfront investments and demonstrate that making the right investment choices is critical to keeping rates affordable.

Today, 35% of Oregon’s electricity is generated from coal fired plants. Oregon’s private utilities continue to advocate for billions of dollars worth of investments in scrubbers and other technologies to keep their coal plants compliant with requirements under the Federal Clean Air Act. Here at CUB, we take these investment proposals seriously. When it comes to investing ratepayer money, we make sure that investments are economically sustainable and do not create a great deal of risk to customers. This is why it is imperative that before utilities invest billions in coal plants, they must be required to conduct comprehensive analyses that look into all other economical—and often cleaner—energy alternatives.

Investments in coal require special scrutiny because they pose significant risk. The CUB Policy Center believes that in the near future we will live in a world where climate change is addressed by constraining carbon emissions, which will increase the cost of burning coal. If carbon regulation is going to be effective, it will have to be severe enough to force the early retirement of some coal plants. As such, it is unwise to invest in coal plants without analyzing the potential effects of carbon regulation in order to determine whether there are alternatives that have less risk and better economics.

At CUB, we support an energy future that strikes the balance of least-cost and least-risk. This means that Oregon’s energy planning must look at all of the options that are available. Increased energy efficiency is the most cost-effective way to accommodate future load growth. As we continue to make the state more energy efficient, we must also support a reasonably modernized grid that can help integrate additional renewable resources. This means that utilities must consider technologies like demand response, which can make Oregon’s energy demand more flexible, efficient, and affordable for consumers.

Natural gas can be a short-term ally in transitioning away from coal, but it would be unwise to commit to an energy future fueled predominately by yet another carbon-emitting fuel, especially one with such variable prices. This means avoiding long-term commitments to new baseload natural gas generation, since each new gas plant will require about 35 years to plan, build, and finance. Making least-risk decisions means having a resilient portfolio. Building a diverse, renewable energy portfolio must be at the center of Oregon’s energy strategy.

In 2010, CUB worked with PGE to get approval of a plan to phase out the Boardman coal plant by 2020. This agreement proved that it is possible to close coal plants early, save customers money, and make an environmental impact. Using Boardman as precedent, we believe that utilities should be aggressively analyzing the future of these coal plants that serve our state, in order to move towards environmentally responsible solutions where both customers and utilities come out winners.

If you think utilities should be subject to cost-saving, environmentally sound analyses of the coal investments that will affect your home’s electricity, please join us in our efforts. Become a CUB member for as little as $5, or sign up for our email newsletter to stay up to date on what your utility is doing.

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