More Accomplishments

2020 - CUB Wins Protections for Utility Customers Impacted by COVID-19

In the summer and fall of 2020, CUB successfully advocated for consumer protections for utility customers hard hit by COVID-19 before the PUC and the Legislature’s Emergency Board.

Energy: CUB’s COVID-19 Energy Utility Customer Protection Plan shaped the PUC’s thinking during its summer study of COVID-19 customer impacts. PUC Commissioner Mark Thompson characterized the release of our plan as a “watershed moment” in that investigation and for PUC decision making.

A few of the essential protections CUB secured for energy utility customers are:

• A freeze on service disconnections until at least April of 2021
• Nearly $40 million to forgive customers’ past-due balances
• Increased bill payment assistance for customers with low incomes
• Long-term, flexible repayment options for customers
• Suspension of customer security deposits and various fees through at least October of 2022

Telecommunications: When COVID-19 hit Oregon, CUB acted quickly by proposing additional resources to the Oregon Telephone Assistance Program (OTAP). OTAP helps low-income Oregon households pay for their phone or broadband internet service from traditional utilities like CenturyLink and Ziply Fiber (formerly Frontier and NW Fiber, respectively), as well as certain wireless providers. On June 5, the Oregon Legislature’s Joint Emergency Board unanimously approved CUB’s proposal to allocate 3.5 million federal COVID-19 relief dollars to boost OTAP through the end of 2020.

2020 - CUB Wins Victories for Telecommunications Consumers

Rural Broadband Bill Passes (SB 1603): In the summer special session, the Oregon Legislature passed the CUB supported SB 1603, the Rural Telecommunications Investment Act, that ensures sustainable funding of up to $5 million a year for new high-speed internet service infrastructure and grants for rural Oregon communities. This bill also resolved a longstanding fairness issue by ending a wireless industry exemption that was unfair to landline customers and lowered a surcharge rate for all voice customers.

CUB Helped Secure Customer Benefits in Frontier Merger: In a process that wrapped up in early 2020, Frontier Communications agreed to sell its northwest assets to newly formed NW Fiber (now operating as Ziply Fiber). CUB worked diligently to secure NW Fiber/Ziply’s commitment to invest in Oregon communities and customers outside of the Portland Metro Area. The company must ensure that at least 60 percent of all service locations have access to high-speed fiber-based broadband infrastructure (1 gigabit symmetrical service) within the first five years. The agreement also includes NW Fiber/Ziply investing $50 million in improving and expanding fiber-based internet infrastructure. At least $10 million will be spent outside of the Portland Metro Area within five years, with $5 million spent within three years. Another $40 million must be invested across Oregon, with $20 million spent within three years. This agreement represents a significant step toward narrowing Oregon’s digital divide for customers outside the Portland Metro Area.

2020 - CUB’s Work Results in Historic Coal Plant Closures

Portland General Electric Closes Boardman Coal Plant: On October 15, 2020, the only coal plant in Oregon, Boardman, closed for good. This major milestone began in 2008 with CUB’s innovative analysis that led to a “close in ten years” agreement in 2010. Before this significant victory, no utility had ever agreed to close a modern coal plant. This was the culmination of work that CUB began in 2008 with analysis showing that it was more economical to shut Boardman in 2020 and avoid spending $500 million to meet air quality regulations. PGE deserves credit for making the right decision, despite industry pressures to continue the use of coal.

Pacific Power Closes Cholla 4 Coal Plant: PacifiCorp, whose northwestern component is Pacific Power, announced in early 2020 that it would close the Cholla 4 coal plant in Arizona by the end of the year. This decision came after CUB advocacy which pointed out that closing Cholla 4 would save money. The same conclusion was documented by Pacific Power’s own study analyzing coal plant economics. With urging from CUB and other stakeholders, the PUC required this study as part of Pacific Power’s resource planning. The Cholla 4 plant closure indicates CUB’s follow-through to ensure that Pacific Power takes decarbonization steps and saves money for customers.

2020 - CUB Protects Consumer Interests in Utility Resource Planning

Do Oregon’s regulated energy utilities have the capacity to meet future energy needs, and how will that energy be produced? What steps can be taken to reduce energy demand? These are the core questions involved in developing Integrated Resource Plans (IRPs). IRP development is a lengthy process requiring participation of the company, the PUC, and stakeholders. CUB brings economic analysis capacity to IRP development to ensure that Oregonians are only paying for least-cost, least-risk, and clean utility resources. In 2020, two major utilities, Portland General Electric and Pacific Power, wrapped up their most recent round of IRP planning, and the PUC acknowledged both plans.

Portland General Electric (PGE): PGE’s plan focused heavily on renewable resources, non-greenhouse-gas emitting-technologies like battery storage, and reducing the demand for energy. PGE also committed to engage customers by promoting lowering energy use at peak times, increasing energy efficiency, and growing small scale energy production such as rooftop solar. While customers play a significant role in reducing the demand for energy, CUB ensured that these conservation measures would be affordable.

Pacific Power (PAC): Pacific Power’s plan committed to retire five coal plants by 2025 and laid out a plan to invest in wind, solar, and battery storage over the coming decade. As of 2020, coal production made up about 60 percent of Pacific Power’s electricity generation. This plan was an important milestone for Oregon and PAC customers. CUB was also able to influence the PUC to direct the company to evaluate how it analyzes coal, which could lead to more switches to renewable energy in the future.

2020 - CUB Reduces Rate Increases for Customers

In 2020, four of the six major regulated energy utilities serving Oregonians filed general rate cases, the most seen in a single year in recent history.

• NW Natural Gas: NW Natural Gas, Oregon’s largest natural gas provider, sought an 11.5 percent rate increase in 2020. After much negotiation and CUB pushback, the company agreed to a 7.37 percent increase, saving customers nearly $25.6 million. CUB commends NW Natural for working in good faith to reduce its rate increase in light of the economic turmoil brought on by the COVID-19 pandemic.
• Pacific Power: Despite the economic impacts of COVID-19, Pacific Power proposed to raise Oregon rates by $78 million, including adding the cost of retrofitting coal plants and a $12 million boost to the profit margin of its corporate parent, Berkshire Hathaway. CUB won an agreement to keep the fixed part of customer bills the same at $9.50 per month and challenged much of the increase. The Public Utility Commission agreed with many of CUB’s points and ordered a rate decrease of 1.6 percent.
• Cascade Natural Gas and Avista Natural Gas: Oregon’s two smallest natural gas utilities’ rate cases are still underway. Given the COVID-19 economic crisis, CUB believes utility rate increases must be held to the lowest level possible. CUB is diligently reviewing the companies’ claims and expects to push back on several elements of these cases to protect customer interests.

2020 - CUB Staff Serve as Policy Experts

CUB staff expertise is a major organizational strength that is recognized beyond our office. In 2020 our staff participated in the following committees and conference panels:

• CUB General Counsel, Mike Goetz
  • Served on the Resource Advocacy Steering Committee convened by the Northwest Power and Conservation Council
  • Served on the Clean Fuels Program Rulemaking Advisory Committee convened by the Oregon Department of Environmental Quality

• CUB Economist, Will Gehrke
  

  • Elected by public interest and consumer advocacy groups to a customer advocate seat on the Regional Issues Forum convened by the California Independent System Operator regarding its management of the Energy Imbalance Market

• CUB Executive Director, Bob Jenks
  

  • Spoke on protecting consumers in Oregon, since we stand out nationally as a state with a strong decarbonization commitment, at the annual conference of the National Association of State Utility Consumer Advocates
  • Spoke at a national meeting sponsored by the American Council for an Energy Efficient Economy (ACEEE) on electric vehicles and utilities
  • Was appointed to the Greenhouse Gas Emissions Program Rulemaking Advisory Committee convened by Oregon Department of Environmental Quality

• CUB Advocacy and Development Manager, Sam Pastrick
  

  • Spoke on the broadband panel at the Oregon League of Cities annual conference

2019 - NW Fiber Commits to Improve Frontier Communications

In May 2019, Frontier Communications reached a tentative agreement with NW Fiber to sell their Northwest assets. Frontier’s Oregon subsidiary serves residential customers with both legacy telephone and internet access services. In December 2019, all parties formally agreed to a set of conditions. Throughout the proceeding, CUB was particularly interested in ensuring the continuation of high-quality, affordable voice service, and increased investment in Frontier’s network. CUB sought and ultimately won an additional $50 million to be invested in fiber-based broadband infrastructure over the next five years. And in recognition of the urban-rural digital divide, the stipulation decreed that at least 1/5 of this investment must be spent outside of the Portland-metro area.

2019 - CUB Policy Conference Highlights Clean Energy Communities and Reliability

The 9th annual CUB Policy Conference, Clean Energy Communities / Reliable Systems, convened utility industry leaders and stakeholders on November 8 to discuss the interplay and conflicts between goals to achieve clean and resilient energy systems in communities, and the need for firm capacity and grid reliability.

2019 - PGE Launches Smart Grid Test Bed

PGE launched its Smart Grid Test Bed in summer 2019, and CUB began working with the company on implementation. The concept behind the smart grid project is to pay customers to adjust loads to support the grid rather than building new gas-fired power plants. PGE chose three neighborhoods in Portland, Milwaukee, and Hillsboro that are representative of their larger service territory. In the program, customers can receive bill credits or other rewards for cutting demand during peak events, or allowing their thermostat to automatically adjust during peak events. In addition, PGE can help customers integrate heat pump water heaters, electric vehicles, or battery storage to the grid and gain additional benefits.

2019 - CUB Victory on Pacific Power Wind Repowering

Pacific Power had decided to replace about 80 percent of each of its wind turbines with more modern equipment that would increase their output. A significant benefit was that the wind repowering would be eligible for federal tax credits. PacifiCorp requested to be allowed to continue earning a profit on the equipment that was being removed from turbines. CUB objected. CUB won a lawsuit that stopped PGE from charging profits on the closed Trojan nuclear power plant and believed that precedent applied here. We worked out an agreement with Pacific Power that removed the profits and limited the rate impact to less than 1 percent.

2019 - Preserving Carriers of Last Resort, CUB Wins Policy Review

CUB authored HB 3065 with Representative Pam Marsh from Ashland in District 5 to defend landline telephone customers from proposed CenturyLink legislation that sought to abandon their and other telephone companies’ carrier of last resort (COLR) obligation to Oregon customers. CUB’s successful legislative alternative called for a COLR policy review by the Oregon PUC with a required commitment to protect rural, older adult, and low-income customers.

2019 - Reducing Coal Resources

In the future, carbon regulation will add to the cost of generating electricity from coal, so reducing our dependence on coal will have significant economic benefits for customers. 2019 saw four significant milestones in this area.

• Pacific Power Resource Plan: In its last resource plan, CUB pushed the PUC to require Pacific Power to examine the economics of each of its 24 coal plants. CUB followed that requirement through to 2019’s resource plan, examining every step of the coal analysis. The result is that the resource plan supports closing 16 of the company’s 24 coal plants by the end of 2030.
• Pacific Power Multi-State Process: In 2016, CUB helped pass the “Coal to Clean” legislation (SB 1547) that requires utilities to stop using coal to serve Oregon customers by 2030. Pacific Power serves customers in six states with a shared set of resources, including coal resources. CUB has been meeting for the last two years with other stakeholders from all six states to design a new methodology for allocating generation and its related costs to the states. In early December 2019, the new methodology was formally proposed. It allows Oregon to phase out Pacific Power coal generation between 2020-2030, and provides incentives for other states to join Oregon and eliminate coal generation.
• Idaho Power Coal Unit Retirements: CUB worked with Idaho Power on a plan allowing it to remove two coal units from its resource portfolio. Idaho Power promised to eliminate North Valmy Unit 1 as a resource by the end of 2019 and Unit 2 by 2025.
• Replacing Boardman: In 2009-2010, when CUB worked with PGE on the groundbreaking agreement to close the Boardman coal plant, no utility in the country had agreed to close a modern coal plant. That agreement required Boardman to be phased out by the end of 2020. CUB worked with PGE throughout 2019 on replacement resources. PGE proposed to add more renewables, batter storage, energy efficiency, and work with customers to adjust demand as a resource to meet load. One new aspect of PGE’s plan was a commitment to look only at new non-carbon emitting resources to ensure that PGE’s carbon emissions would fall after Boardman’s closure.

2019 - Avista Rate Hike Cut

Avista, a natural gas utility serving southern and eastern Oregon, sought an 8 percent residential rate increase. Much of the cause was the need to replace pipe that is beginning to fail, but the company was also asking for an increase in profit margin. CUB was able to push back on the profit margin issue, and win other changes that lowered the increase to 4.5 percent.

2019 - CUB Helps Establish Oregon Broadband Office

CUB advocated for and helped pass HB 2173, legislation that established the Oregon Broadband Office in state law. The bill also removed the 2020 sunset from the existing Oregon Broadband Advisory Council, while adding two additional seats to balance representation among industry groups, elected officials, and the public at large.

2019 - Analyzing Utility Data on Shut-offs

In 2018, Oregon became one of the first states requiring utilities to report data related to the number of customers who have their energy service shut off each month. As of fall 2019, each electric and gas utility had collected a full year of shut-off data. CUB began analyzing this data and found vast differences between utilities. One big difference was related to the number of low-income customers receiving energy assistance that are shut off. This suggested that different utilities had very different approaches to shutting off service to low-income customers who were known to be struggling with their bills. CUB raised questions with one utility about the data and its practices, and planned to use this data going forward to ensure that all utilities are working to reduce shut-offs.

2019 - CUB Develops a New Method for Evaluating Utility Investments in EV Charging

Oregonians have purchased thousands of electric vehicles (EVs) in recent years. With the majority of these in PGE’s service territory, PGE expects to have 99,000 EVs charging on its system by 2025. While the PUC has approved a set of pilot programs allowing PGE to test methods to serve this load, CUB believes that it is time to move beyond pilot programs and focus on the best way to serve this load. The key to keeping system costs down is ensuring that EVs charge at off-peak times, when power is cheap, or allowing the utility to adjust EV charging remotely as renewable power increases and decreases. CUB methodology looks at the revenues that the EVs will produce related to the utility grid, and allows some of those revenues to be invested back into smart charging of EVs. Under CUB’s methodology, other customers are guaranteed that the grid-related revenues produced by EVs are greater than the cost of the utility investments, so all customers benefit.

2019 - Cascade Rate Hike Cut

Cascade is a natural gas utility serving central and eastern Oregon. It was requesting a 5 percent residential rate increase due to increased investment in its distribution pipes. CUB was able to reduce the increase to less than 3 percent by ensuring that the benefits of lower corporate tax rates were passed through to customers.

2019 - Hydro One’s Avista Merger Rejected

As 2019 began, Hydro One, a Canadian electric utility partially owned by the government of Ontario, was still trying to purchase Avista Utilities. In January the merger was rejected by Idaho and Washington. CUB had been a leading voice objecting to the deal after the newly elected Premier of Ontario decided to fire the CEO and interfere in the utility’s operations.

2018 - PUC Agrees: Capital Costs Should Be Recovered in General Rate Cases

CUB, along with other stakeholders, successfully argued that the Public Utility Commission does not possess the requisite authority to grant deferred accounting applications for utility capital costs. While this is a very wonky win, the crux of the matter is that capital costs will be subject to recovery in general rate cases where these costs are most appropriately addressed. This guarantees that capital costs are considered as part of the holistic costs that utilities incur to provide service, rather than on an individual basis such as a deferral application. CUB was pleased to see the PUC act in the best interest of consumers, protecting them from the utilities’ ongoing attempts to shift unreasonable cost and risk onto customers.

2018 - Portland Passes Clean Energy Initiative

On November 6, voters passed Measure 26-201, the Portland Clean Energy Initiative, by well over 60 percent. CUB endorsed and advocated for this measure, which is an innovative vehicle to support new community based energy programs linked to public health, affordable housing, and other co-benefits.

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