He Bear Facts Itizens' Utility Board of Oregon
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he Bear Facts Itizens' Utility Board of Oregon base those predictions on very abnormal PGE Trifecta of Cases circumstances. Biglow Canyon Wind Farm CUB is cha llenging attempts by Portland General Electric to overcharge customers for the The second case is UE 188, regarding the future electrical power they deliver to our homes, in three rates of Biglow Canyon Wind Farm, currently cases at the Public Utility Commission. under construction. PGE has asked that a charge to cover the cost of the wind farm be added to Boardman Power Plant bills starting in January 2008. This Go to page 4 for is a reasonable request and CUB The first case is UE 192, regarding the has not challenged it. However, forecasting of costs associated with a scorecard of PGE is also asking that the Biglow PGE's Boardman coal-fired power plant. how your State charge continue unchanged into This plant was out of service for Representative 2009, and that we are fighting, approximately 8 months in 2005-2006 due and Senator because we think to do so would to problems on the gas turbine and the overcharge customers. plant operated poorly the rest of those two voted in the years. The question in this docket is how 2007 session In order to account for two factors , many days we forecast the plant to be on the issues more customers and depreciation, operational next year. that matter to we think the surcharge for Biglow should go down on individual Traditionally, we have looked at the last 4 consumers. households' bills in 2009. years of normal operation as a predictor of the next year's performance. A forecast based Port Westward Gas Plant on 2005-2006 (as PGE proposes) would predict larger numbers of days off-line for the plant in Port Westward is PGE's brand new gas-fired 2008 than normal, which would require PGE to electricity generation plant, completed and added purchase more power in the market for about 6 to rates in June. Because the rate case that cents per kwh (as opposed to the 1.5 cent cost approved Port Westward costs came months of Boardman power), resulting in higher rates for before the plant was completed, CUB got the PUC customers. Because PGE negotiates power to add a provision to that rate case allowing us to contracts on the open market, the exact costs at reexamine PGE's forecast of costs if Port issue here are confidential, but we believe that Westward was delayed. The completion of Port using the years 2005 and 2006 in creating the Westward was delayed several months, providing Boardman forecast would increase rates by us a chance to look at PGE's costs. Since those several million dollars in 2008. rates were set, the state tax rate charged to PGE has gone down. PGE's 2007 power costs have CUB thinks it's pretty clear that 2005 and 2006 come in lower than expected. Finally, Port were unusual years, and, assuming the plant is Westward construction cost less than forecasted. back to normal operations, as the company claims, shouldn't be repeated . We are suggesting CUB has asked the Commission to update these that the years 2001 through 2004 make a better costs, so that the charge for Port Westward 4-year average of the plant's expected operation reflects these lower tax and operating costs. If under normal conditions. PGE calls CUB's the Commission agrees to revisit these costs there recommended change in the 4-year average should be a retroactive credit going back to June "arbitrary"; we call it just good sense. If you are for customers. going to predict for normal operations, you don't From The Executive Director The Bear Facts is the periodic newsletter of CUB and the CUB Since our last newsletter, two important members of the CUB Educational Fund. family have passed away. BOARD Chair Doug Crow First, we-lost Doug Still, a CUB Board member from Cottage Governors Steve Weiss, Joan Ellen Jones, Will Calvert, Fred Heutte, Grove. Doug was a passionate activist who accomplished a Scott Hansen, Maureen Kirk, great deal. He was a founder and long-time Board member of Janice Thompson, Hank Keeton, Emerald PUD, one of the most innovative publicly owned utilities Linda Tomassi in the country. He was an early advocate of solar energy and CUB's board meets 8 times renewables. But Doug's important work was not limited to per year. energy issues. He was a minister. He founded a community mental heath center. He spent several decades working for social justice, doing community organizing with Cesar Chavez CUB and Saul Alinsky, and going to jail after a demonstration led by 610 SW Broadway, Suite 308 Portland, OR 97205 Dr. Martin Luther King, Jr. (For more on Doug, go to http:// (503) 227-1984 (phone) oregoncub.org/archives/2007 /07 /doug_still.php) (503) 274-2956 (fax) [email protected] More recently we lost John Glascock, a former CUB Board www.oregoncub.org member and a great energy activist. After his retirement, John became a vital advocate for seniors and energy issues with CUB is a member of the National AARP and CUB. He alone collected more than 1000 signatures Association of State Utility Consumer on our referendum petition to stop PGE from charging Advocates (NASUCA) and the customers a profit on the closed Trojan nuclear power plant in Consumer Federation of America 1999. (For more information on John, go to http://oregoncub.org/ (CFA). archives/2007/09/john_glascock_1.php) NOTICE Both Doug and John were there in 1999 when Oregon rejected Enron's electric deregulation scheme and instead the legislature CUB's Board of Governors is elected by CUB established our current energy policy. In 1999, Doug was with members. To find out more about serving Emerald PUD, John was with AARP, and I on the CUB board and the election process, was here at CUB. The three of us came you can go to the CUB website at together regularly as part of the Fair and www oregoncub.org and click on About CUB Clean Energy Coalition, which was and follow the links from there. A candidate established to oppose Enron and advocate filing form, along with an election schedule for energy policy that protected customers, and complete rules, is available at the invested in energy efficiency and renewables website. A form and additional information and protected low-income Oregonians. The can also be requested via postal mail by calling CUB at 503-227 -1984. policy we advocated passed. Doug's and John's contribution to that effort was Notice Date: 29 September 2007 immense. Both went on to serve on the CUB Board of Governors where they gave significant leadership and support to our work. At CUB they were part of our family. We are proud of the contribution they made to Oregon. Both of them will be sorely missed. ~f)~ Bob Jenks Executive Director & CUB Charter Member 2007 Legislative Session renewable and energy efficiency projects through the Energy Trust of Oregon) to 2025, beyond the former sunset of 2012. Wrap-Up This demonstrates Oregon's continued commitment to a clean energy future and will help to stabilize the electrical Sometimes when you say, "You 're either for us or agin' system as a whole. us," you might be exaggerating. Other times, that really does sort of seem to sum up the situation. In this, our HB 2620: Passed and signed into law. Requires that 1.5 first Bear Facts summary of the CUB percent of most new public building construction be dedicated accomplishments of the 2007 Legislative Session, with to including solar as part of the design. accompanying voting chart showing the way legislators voted on energy and utility issues, we found an unusual SB 375: Passed and signed into law. Increases energy pattern in the Oregon Senate. Most (77%) of Oregon efficiency standards for certain named appliances. As a State Senators were either with us 100% of the time companion to the ground breaking bill CUB helped pass last in the voting record, or against us with a 0% CUB session, the 2007 bill added energy-saving standards for more voting record . There were a few Senators who didn't appliances. The bill also allows the state Department of follow the pattern, but there was definitely a pattern to Energy to align Oregon standards with other standards adopted by other states. be broken. In the Oregon House, our voting chart shows more HB 2211 and HB 2212 (included in HB 3201): Passed and mixed results, but still shows that more than half of signed into law. Originally HB 2211 increased the state the House (31 Representatives) voted with customers' Business Energy Tax Credit and HB 2212 increased the interests 100% of the time. No Oregon House member Residential Energy Tax Credit to provide additional incentives had a 0% score on the CUB voting chart. This is for using renewable energy in homes and businesses around perhaps one of the indications of what a strong session the state. The Business Energy Ta x Credit was also amended it was, along with our ability to play offense down at so that homebuilders could get a tax credit for including the Capitol, rather than simply defense. In the process, renewable energy systems in homes they were building and we managed to pass some important legislation that selling. Both bills became a part of an omnibus tax credit will pay big dividends in the future for both customers bill , HB 3201 , which gained legislative approval and the governor's signature.