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CUB Is Changing Oregon’s Energy and Environmental Future

Update - 11:00am, 1/7/2016:
A two-page document has been made available summarizing the following information. Read it here.

Recently, leaders from around the world met in Paris to address the challenges of climate change. Meanwhile, back here in Oregon an equally important summit has been happening. In fact, CUB staff have been working diligently with a diverse group of utility, energy,  and environmental stakeholders* to craft legislation that will transition Oregon away from coal-fire generated energy, increase Oregon’s renewables, and affirm Oregon’s commitment to energy efficiency. We’ve done all this while also making sure to protect ratepayers from arbitrary costs and unaffordable rate increases.

Often, when stakeholders like investor-owned utilities and environmental groups come together, there is nothing but posturing and stalemate. Fortunately, because CUB has years of experience finding workable solutions for utility ratepayers, we were able to guide conversations and facilitate agreements. Believe it or not, the utilities and the environmentalists have agreed on legislation that everyone can support and that will avoid an expensive and time consuming ballot measure battle.

Given the delicate nature of this agreement, we are appreciative of the genuine effort that each group of stakeholders brings to the table. Their commitment to finding common ground to attain joint purposes, rather than creating winners and losers, is commendable. CUB is now leading this strong coalition in conversations with policy makers and we hope that this legislation will become law before the end of Oregon’s 2016 short session. Stay tuned for exciting updates!

Here are some of the highlights of this agreement:
• The agreement ends Oregon’s use of investor-owned coal-fired generation with all but one plant being phased out by 2030 and the remaining plant by 2035 at the latest.
• It builds on Oregon’s 2007 Renewable Energy Standard (RES) – which says that large utilities must generate 25% of their energy through renewables by 2025 – by extending a sustained, orderly development of new, renewable resources with predictable stair-steps to attain a 50% RES by 2040 for PGE and Pacific Power, the utilities most affected by a transition away from coal.
• The agreement offers certainty, both in terms of how PGE and Pacific Power handle their coal plants and how those coal plants will be replaced. With this agreement, we know that coal will be largely replaced with energy efficiency (which is acknowledged as the priority) and renewable energy.
• Like the original RES, consumers are protected in a number of ways to ensure that costs associated with these changes are kept under control.
• The agreement enacts a Community Solar program to allow residential and small commercial customers of investor-owned utilities to participate in the ownership of solar projects and receive the benefits as if they had solar on their own roof. 
• It puts into state policy the importance of transitioning transportation vehicles to electricity, laying out requirements for the building of both public and private infrastructure to sustain this change.
• Several other important rules are included that define how the new renewable resources are treated by regulators.

*Stakeholders in addition to CUB include: Climate Solutions, NW Energy Coalition, Oregon Environmental Council, Oregon League of Conservation Voters, Natural Resources Defense Council, Pacific Power, Portland General Electric, Renewable Northwest, and Sierra Club.

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Comments
  • 1.Can you assure us the agreement and proposed legislation does not touch ORS 261 or otherwise limit the rights of Oregon communities to form People's Utility Districts as currently defined in the law and Oregon Constitution?

  • 2.In connection with energy efficiency, I would promote Amory Lovins' book _Reinventing Fire_ (which with 99% probability you've already seen), One of its especially effective points starts on p. 139, and describes the cost and energy savings from correctly designing pumping/piping systems for commercial plants. The savings realized by Interface in their new plant in Shanghai were truly astounding!

    Jerome Brown | January 2016

  • 3."Equalizes RPS compliance between the two electric companies and any entities that acquire service territory or customers from those companies without their consent."
    So as we thought, Pacific Power is trying to use this agreement to head off our effort to create a People's Utility District. That wasn't going to be in your ballot initiative was it? This is an attempt by out of state billionaire Warren Buffett to limit Oregon communities' rights. And they would have to get out of coal anyway. "The market" would demand it. You will have to drop the provision affecting future PUDs and undermining our right or you will have a big fight on your hands. Klamath won't stand for this power grab.


    ***Reply from CUB on January 08, 2016***
    Thank you for sharing your concerns about the proposed plan. Ten organizations came together in collaboration to develop a compromise plan: Citizens’ Utility Board of Oregon, Climate Solutions, NW Energy Coalition, Oregon Environmental Council, Oregon League of Conservation Voters, Natural Resources Defense Council, Pacific Power, Portland General Electric, Renewable Northwest, and Sierra Club.


    Our goals were to remove coal from Oregon’s energy mix and increase the state’s Renewable Portfolio Standard to 50% while at the same time protecting customers from unreasonable rate increases. Codifying those goals in law will provide both the certainty needed for planning and the flexibility to adapt those plans as needed along the way to a clean-energy future.


    Three main benefits will be gained from this: First, a reduction in Oregon’s carbon footprint; second, protect customers from any future risk of costs imposed by increasingly stringent carbon-emissions restrictions; and third, predictable energy costs (after all, once you install the panels or build the turbines, the solar and wind “fuel” are free).


    Our intent was not to hinder those who might wish to establish a Public Utility District – but we did want to ensure we didn’t create a reverse-incentive to establish a PUD as a way of avoiding obligations to meet the RPS.


    With that in mind, the proposed plan built upon the principle already established in current law (the RPS passed in 2007) that any non-negotiated takeover of privately owned utilities would need to comply with the RPS.


    If a community chooses to establish a PUD that will provide the lowest cost electricity to customers and help preserve Oregon’s environment by complying with the RPS, we encourage them to do so.


    The proposal has been submitted to the legislature and the complete language will be available for public analysis and discussion once the bill has been drafted.


    For more information on CUB's perspective on this matter, please visit http://oregoncub.org/uploads/pdfs/CUB_Statement_on_Formation_of_COUs.pdf.

    Klamath Independnet Public Power | January 2016

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