CUB’s Legislative Highlights, 30 Years and Counting
Posted on February 25, 2014 by Karen Jaffe
Tags, Climate and Conservation, Consumers and Utility Customers, CUB Anniversary: 30 Years and Counting, Generation, Transmission, Distribution, History of CUB and General CUB News, Public Involvement and Coalitions
Governor Ted Kulongoski signs SB 838, instituting Oregon’s Renewable Energy Standard
A lot has changed in Oregon over the last thirty years, and CUB and its members have played a significant role in bringing big wins to the Oregon State Legislature.
Utility policy touches all kinds of areas that might not be obvious. One of those small but important areas is access to basic phone service. A 2005 law stands out for us: Senate Bill (SB) 983, the Domestic Violence Telecommunications Bill. Because of the law, for those at risk of domestic violence, basic service will not be disconnected due to unpaid bills; payment plans allow telecommunications services to stay active when they are most critically needed. The ruling, which was implemented by the Oregon Public Utility Commission, also protects disabled or elderly individuals, and those at risk of abuse or of stalking. This keeps a communications channel open when it is needed, and provides an avenue to continue to pay for service.
But over the years, CUB’s work has had tremendous impact on larger issues as well. Back in the late 1990s, the Enron Corporation purchased the electric utility Portland General Electric, and worked to deregulate the electricity market in the state, as it had elsewhere in the country. CUB fought back, not just with well-researched arguments against deregulation, but by helping to shape an alternative to a deregulated electricity market in Oregon. It was a heated legislative fight, but in the end, thanks to the hard work of CUB, our coalition partners, and our support from members, Senate Bill (SB) 1149 was passed.
That law protected residential ratepayers from deregulation. It led the way to the creation of Energy Trust of Oregon, an independent nonprofit agency funded by a “public purpose charge” in rates that to date has saved ratepayers over $1 billion from reduced energy usage. Since its inception, Energy Trust of Oregon has worked so effectively that Oregon has been in the American Council for an Energy Efficient Economy’s top five most energy-efficient states ranking for the last seven years! The public purpose charge also supports programs to weatherize low-income housing and pays to make schools more energy efficient.
SB 1149 also created a portfolio of renewable energy options so that ratepayers can contribute to building more renewable energy beyond what their utility is required to do by law. Lastly, it also created a fund to help low-income Oregonians pay their electric bills and avoid getting shut-off, a move that lowers costs for everyone.
Another great example of CUB’s impact is the creation of Oregon’s Renewable Energy Standard in 2007 in SB 838. This bill created the policy that 25% of the state’s energy needs be met through renewable resources by 2025. The law allows smaller utilities to meet a lower standard than that to which the large investor-owned utilities are held, but it also requires every utility to integrate renewable energy into future planning to meet future energy needs.
In addition, SB 838 allowed for additional energy efficiency funding. Since efficiency is the lowest-cost way to acquire energy, it made sense to get more efficiency while we were also getting more renewable energy. Finally, this law also extended the public purpose charge enacted by SB 1149 to the year 2025, beyond the original sunset date of 2012, to make sure that energy policy was in sync over the time of the Renewable Energy Standard’s implementation. Governor Ted Kulongoski’s signing of SB 838 (shown above) was witnessed by many of the organizers who had helped make the idea into a bill and then moved that bill through the Oregon Legislature.
CUB’s work isn’t only about breaking new ground; we also pay a close eye to reforming the utility industry. In 2005, CUB helped to pass an important utility tax reform law. The Salem Statesman Journal described the problem as: “Big utilities are reimbursed for their tax obligation but avoid actually paying those taxes. In five years, PGE, Pacific Power and NW Natural have collected almost $1 billion from Oregon customers to defray the taxes they don’t pay” (Steve Law, 7/27/2005). SB 408 changed that by implementing new standards for utilities, ensuring that customers would never be charged for taxes for which the utilities were not actually liable.
The issue resurfaced in 2011. CUB came to the conclusion that though the policy was right, the way it was being implemented – through an annual “true-up” process – was time-consuming, cumbersome, and created some odd outcomes. However, CUB was reticent to engage in discussions about “reforming” SB 408 because of the strong possibility that the utilities would use the reform process to try to repeal the law.
Against both odds and precedent, the customer groups and utilities actively involved in the annual true-up process came to an agreement. Tracking taxes, like any other utility cost, should be done on an ongoing and regular basis. This would avoid a special, annual process to review taxes only once a year. This was an important win for CUB, because tracking taxes on an ongoing basis allows us to examine the corporate structure of the utility and how that structure affects a utility’s tax liability. Since SB 408 addressed the overcharging of utility customers to meet phantom taxes, this follow-up step built in better transparency to make sure it won’t happen again.
We at CUB are proud of the many ways our legislative program has helped move Oregon’s energy and telecommunications policy forward. These cases are just a few examples. You can read about many more legislative accomplishments – better solar policy, requirements for energy efficient appliances, protecting affordable telecommunications services for all consumers – over the years to get the full scope. We look forward to another 30 years of coalition building and advocacy for customers!
This post is part of a year-long retrospective blog series celebrating CUB’s 30th anniversary. We are grateful to our members and our partners for tirelessly supporting our growth and sustaining our work through the past three decades, and we are excited to share our history with you throughout 2014. Follow our 30th anniversary blog series and find out how else we’re celebrating!
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04/05/17 | 0 Comments | CUB’s Legislative Highlights, 30 Years and Counting