After long years of negotiation, Oregon could be ready to make polluters pay and invest the revenue in the state. But as the legislature convenes for a whirlwind one-month session, a surprising opponent is appearing on stage: Portland General Electric (PGE). PGE, the electric utility serving customers from Portland to Salem, likes to tell people it favors clean energy, but when faced with real climate policy opportunities the company looks more like a back-stabber.
In at least five ways, PGE’s opposition to Oregon’s Clean Energy Jobs Bill looks like a tragic betrayal:
1. Betraying its image
PGE advertises its commitment to clean energy and climate action. It recently joined governors, mayors, and businesses across the country to declare their shared commitment to ensure the United States remains a global leader in reducing carbon pollution. PGE applauded Multnomah County and the City of Portland’s goals to move to 100 percent renewable energy by 2050 and said it will help the region lead the way to a clean energy economy. But now…
2. Betraying its customers’ values
PGE says that it reflects its customers’ values, and recognizes that its customers want renewable energy. Oregonians overwhelmingly know climate change is happening and want to regulate greenhouse gas pollution. Oregonians overall, and this is more true for PGE’s customers, support a cap-and-trade program like the Oregon Clean Energy Jobs Act by a three-to-one ratio. So why is PGE opposing it?
3. Betraying its fellow utilities
Pacific Gas and Electric (PG&E) to the south and Puget Sound Energy (PSE) to the north vocally support state climate action. (PSE has its own problems, but at least it supports state climate action.) Like PGE, PG&E and PSE are West Coast utilities with little coal power. Yet, PGE is breaking ranks to stand instead with coal-powered, Berkshire Hathaway-owned PacifiCorp in opposition to Oregon climate action.
4. Betraying its own future
By fighting a bill that will help Oregon stop subsidizing dirty fuel vehicles and move instead to electric vehicles (EVs), PGE is missing a giant opportunity. Electricity-hungry vehicles will create new demand for electricity. And EVs could create a virtuous clean energy cycle by charging up when solar and wind power are abundant, then selling back to the grid when sun and wind are scarce, helping utilities integrate more renewable energy into the grid. Utilities, especially utilities serving a progressive urban market like Portland, whose residents are likely to be early adopters of EVs, would do well to embrace and plan for electric vehicles to make the most of the coming change.
5. Hiding in the shadows
PGE says it is truly, in its heart of hearts, committed to clean energy and climate action, and asks regulators and legislators to trust its good intentions. For example, PGE says it plans to “achieve our proportionate share of Oregon’s 2050 greenhouse gas reduction goal.” But it’s got it’s fingers crossed behind its back.
The green line in the chart below shows the Oregon Global Warming Commissions’ estimate of PGE’s proportionate share of Oregon’s goal of cutting pollution 75 percent below 1990 levels by 2050. The orange line shows what PGE actually plans to do. The gray areas show how much PGE plans to over-pollute, in nearly every year between 2025 and 2050, and getting worse as time goes on. This chart makes clear that PGE is not on track to do its share.
Right now in Salem, PGE lobbyists are not showing legislators the chart above. They are using a misleading chart designed to obscure the fact that the utility is not on track to cut pollution as much as the state needs to. Instead of showing 2017 through 2050 as the chart above shows, PGE lobbyists’ chart shows 2005 through 2040. (See the last page of this presentation). By shifting the frame, PGE’s chart minimizes its over-pollution from 2025 through 2034 and hides its over-pollution post 2040 entirely. State law didn’t require emissions reductions until 2010, so PGE appears to have fabricated the “goals” line from 2005 through present to create the illusion that it has been exceeding goals state goals.
In 2016, the Oregon legislature required Oregon utilities to kick their coal habit. The law obligates PGE to achieve the emissions reductions in the graph above by 2035. But PGE left out the rest of the story through 2050. The utility is currently legally allowed to let pollution rise and intends to do just that. Without a legal limit on pollution (which the Oregon Clean Energy Jobs Bill would provide), PGE’s emissions will rise to unacceptably high levels, making it all but impossible for Oregon to meet its pollution reduction goals.
Put down the knife
It’s not too late for PGE to live up to its stated values and support of climate action. It’s not too late for PGE to embrace the clean energy future its customers want. It’s not too late for PGE to become a leader on encouraging electric vehicles in Portland and Salem to help the utility get rid of its dirty power and get clean.
Steve Corson
Kristin, we are most definitely working for a better deal for our customers. We serve nearly half the population of Oregon and a majority of the state’s economic activity. We believe the cap and trade bills now being discussed in Salem need to recognize what those customers are already paying and committed to paying to achieve real reductions in carbon emissions over the coming years. The way the bills are currently drafted our customers would pay twice: Once for real carbon reductions – investments in new renewable power resources, energy efficiency, and other carbon reduction strategies – and once again for allowances to comply with the cap and trade law.
The allowances allocated to us in the bill drafts are designated to raise money for programs and cannot be used for compliance; the requirement that we then purchase compliance allowances, separately, is explicitly designed to increase the cost of electricity. That, not incidentally, would have an obvious dampening effect on Oregon’s ability to incent people to switch to low-carbon electricity as a fuel for cars and trucks. Other technical flaws in the bills would also hinder their effectiveness and increase costs to Oregon and our customers, unfairly and unnecessarily.
We’re focusing on having a constructive discussion with lawmakers and advocates in Salem. We support responsible, effective carbon regulation to help fight climate change, and we know we’re going to have to do more to meet the state’s goals, so we’re working to help make these bills better, whether the Legislature opts to move them forward in this session or in the future. There’s more detail about our concerns and proposed solutions in the fact sheet we’ve posted on our website.
Steve Corson, Portland General Electric
Tom Civiletti
I pay extra for renewable power from PGE. I support cap and trade and a carbon tax. We have only one livable planet. Stop rendering it otherwise, Steve Corson.
Devon Downeysmith
This is an amazing post! Just one small correction on point 5 — I think you mean “back” instead of “bad.”
Ed Guzman
Ah, thank you for flagging that, Devon! And thank you for your interest in our work!
Ted
What a totally and outlandishly biased article. Who says Oregonians are overwhelmingly in favor of carbon cap and trade? That’s pure propaganda. Oregonians are overwhelmingly being taxed out of their homes and you people think nothing of it. Not to mention regulations and (fees).
Good for PGE!
Tom Civiletti
Oregonians are in favor of maintaining a livable planet. The rest is policy detail.
Chris Seward
Fake news Tom.
Pat Ryan
So per the PGE statement:
“….the requirement that we then purchase compliance allowances, separately, is explicitly designed to increase the cost of electricity.”
Who benefits from increasing the cost of electricity? There must be a motive for such dastardly behavior.
David Petersen
I think it’s overdue to craft PGE into a publically owned utility. We made a half-hearted effort to do that some 20+ years ago. PGE hates wind and solar – their ever declining buy back rates of solar over last 10 years says it loudly. If not counting our hydropower, PGE would have one of the nation’s tiniest alternative energy portfolios.
At best – they’re a sullen and recalcitrant “partner” in our northwest energy future. We need millions of new kilowatts from solar, gigawatts from wind, community owned solar micro-grids, all tied in with modern transmission capabilities. Sadly – that’s not on PGE’s agenda at all.
Folllow New York’s lead and build our future on publicly owned power.
Kevin Tracy
Come on folks, a couple facts:
1) Pollution and CO2 levels are lower now than since 1960 and have been declining every year.
2) renewable sources of electricity are only ’usable’ 30% of the time, what will supply electricity the other 70% of time…electricity cannot be stored at any significant levels to be usable if it us not being concurrently generated at the time if demand.
3) If we want all electricity to be green by 2050, than nuclear power is the only way that will happen. Period. Look at any projections of future demands and supplys—renewable won’t cut it and groups like sightline do not support nuclear energy.
4) Controlling the source of electric generation in OR will have a minimal to non- measurable effect on pollution levels. Reason: OR is part of a multi-state grid system and unless all the states are on the same page cap and trade will a minimal effect on regional pollution levels and virtually none for the State as a whole.
5) Cap and trade hurts only small businesses not the large ‘evil’ corporations that groups like this portend to put up on the mantle as the aim of their efforts. Hundreds if not thousands of small businesses would be put out of business by these proposed bills…the large corps they pretend will be punished just buy credits and continue to do what they have always been doing—but the cost will kill small business—they cant afford to purchase credits. Go to Betsy Johnsons website, a Democrat if you want the truth about cap and trade—don’t just listen to this propaganda that ‘similar thinking’ organizations howl about.
I could run this up to 25 with more truths, but do your own research and discover the real truth.