2016: A Year-End Review

It could be said that 2016 has been tumultuous for CUB with change being the one constant in our very busy year. We have participated in creating remarkable energy policy in Oregon, voiced our strong support for net neutrality and equal access to the internet, saved millions for consumers of City of Portland utilities, and have bid farewell to a few staff members, welcomed new faces, and created a new Advocacy team to meet our ever-changing needs.

Energy Program - Long-Term Affordability and Stability

Oregon Clean Electricity & Coal Transition Legislation: CUB played a critical role in negotiating and passing the Oregon Clean Electricity & Coal Transition Act, which phases out the use of coal by electric utilities over the next 20 years and replaces it with renewable energy. By doing this over two decades, we are able to plan carefully, ensuring the lowest cost to customers. Additionally, we can time the new renewables investments and coal retirements so rate stability is not jeopardized. Most importantly, by reducing carbon emissions, we protect customers from the high costs associated with carbon regulation and air quality requirements, while still keeping rates affordable.

Electric Vehicles: Carbon emissions from generating electricity are going down and are now less than carbon emissions from transportation. Increasingly, climate activists are focusing on electric vehicles (EVs) as the climate change solution to transportation. CUB has been and will continue to be involved in developing policy that speaks to how EVs impact the electric grid. As utilities work to develop EV plans, CUB is pushing to integrate EVs in such a way that they support the electric grid and help reduce costs for all customers. One example: cars that are recharging at night can be used to help balance wind energy. By varying the charging as the wind increases and decreases, utilities can thereby reduce the cost of integrating the wind onto their system.

Natural Gas Reserves: CUB led the successful fight against PGE's proposal to invest millions of dollars of ratepayer money into natural gas reserves which can be drilled to supply fuel for PGE's power plants. PGE's proposal would have committed customers to more than 30 years of gas drilling and production risk - gas drilling is much riskier than running a utility. As climate change regulation threatens the economics of fossil fuels, buying untapped reserves of fossil fuels seems misguided.

Energy Program - Rate Cases

CUB participated in rate cases involving all of the major electric utilities and two of the natural gas companies, saving customers over $82 million in this year alone. For example:

Gas Utilities Get Less Than They Want: Avista Utilities and Cascade Natural Gas, gas utilities which serve much of southern and eastern Oregon both came in requesting large general rate increases. CUB, working with other parties, was successful in slashing these rate hikes. Avista's rate hike was cut in half and Cascade's by more than 60%.

Another Year, Another Win on Pensions: Last year, CUB had a big victory when the Public Utility Commission (PUC) ruled against an effort by most of Oregon's utilities to raise rates and allow the utility shareholders to earn a profit off of their employee pensions. This year PGE was back, asking the PUC to allow it to raise rates by $18 million in order to recover pension expenses incurred in 2012 and 2013. CUB pushed back, pointing out that between 1997 and 2004, PGE overcharged customers for pension expense by $84 million. The PUC ruled in our favor.

Energy Program - Low Income Regulation

CUB is advocating on behalf of low-income consumers in two areas:

Percentage of Income Payment Plan (PIPP): Seven states currently offer PIPP or similar programs. A percentage-of-income approach allocates energy assistance funds in relation to a household's income. The goal is for households with the highest energy burden and lowest income to receive the greatest benefit. The PUC began this process late this year and we expect it to go well into 2017 with eventual legislative action in 2018. CUB will work to ensure that an Oregon PIPP would make the most efficient use of resources to help low-income customers.

10% Low-Income requirement for Community Solar: As a result of SB 1547, Oregon consumers now how the option to invest in community solar projects to receive the same benefits they would if they had installed it on their rooftop. As part of that agreement, however, 10% of all Community Solar built must be available to and used by low-income families. CUB is participating in creating regulation that will allow realistic, accessible options for low-income consumers.

Telecom - Open Internet: Net Neutrality and Digital Inclusion

Because cell phones and the internet are not regulated at the state level, CUB's work in these areas is largely restricted to helping consumers understand the complicated regulatory, legal, and legislative issues that are facing US consumers. This year has included in-depth reporting on the FCC's rulings on Net Neutrality, as well as some regular work on local committees focused on facilitating equal access to the internet for all (also known as Digital Inclusion). To see what we have been following and informing on this year, visit Telecommunications news.

Portland Water and Wastewater - Ending Developer Subsidies

As a result of a 2015 challenge by CUB, the Portland City Council agreed to raise developers' sewer development charges, paid to the Bureau of Environmental Services (BES) to levels allowed under state law. At that time, this change was projected to keep $2 million in the pockets of Portland ratepayers. However, by July 2016, at the end of the city's fiscal year, those savings ended up totaling $3.2 million.

Additionally, this year we convinced the City Council to end a second developer subsidy by giving BES permission to charge fees that covered their costs of reviewing development plans to ensure compliance with environmental standards. Ending both these developer subsidies will provide ongoing savings, with $4.5 million in savings projected by mid-2017. (For more information see the Portland Water & Wastewater blog feed.)

CUB Conference - Encouraging the hard conversations

Held October 14, 2016, this year's 6th annual energy policy conference included the largest sponsorship income and the highest attendance to date. Taking the theme The Future Starts Now, this year's conference included topics most relevant to energy policy in Oregon by encouraging panelists to tackle hard questions and by allowing plenty of time for audience participation. To read more about the 2016 conference visit our Outreach & Events blog channel.

Staff Updates - We are changing and rearranging

In early 2016, longtime CUB Policy Director Jeff Bissonnette left to become the Executive Director for Oregon Solar Energy Industries Association (OSEIA). It was a bittersweet parting as we were pleased for Jeff's new opportunity, but sad to see him go.

Then later in the year, CUB Staff Attorney Summer Moser was hired by the Attorney General's office to represent the PUC, and Utility Analyst Nadine Hanhan was offered and accepted a position with the PUC in Salem. Their departure was also bittersweet, but we are excited for both of them in these new roles.

And as a result, we hired two new lawyers, Mike Goetz and Liz Jones, both of whom have jumped right in!

To round out this year's changes, CUB has created a new Advocacy Team that includes Janice Thompson, Advocacy Director, and Sam Pastrick in a half-time role as a Consumer Advocate (Sam also continues to work half-time as CUB's Development Associate). Together, Janice and Sam will cover legislative issues, and advocate/educate across CUB programs but especially in the areas addressing telecom, water/wastewater, and low-income related regulation.

So as you can see - it has been a very busy year and of course we could not have done all this important work without your support. Thanks so very much for your generosity; it is truly the light that illuminates the work we do. (And if you feel like squeezing in a last-minute year-end donation, there is still time!)

There is always more work ahead, so come January 3rd when our office reopens from the holiday break, we will once again be watching and working on behalf of Oregon utility consumers, making sure that your wallet and your values are being represented. So until next year, from all the staff here at CUB, we wish you the best in 2017.

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