SALEM - A bill to require the state's largest
electric utilities to draw 25 percent of their power from renewable
resources like the wind, sun and waves by 2025 won approval Wednesday
in the Oregon House.
Supporters said the proposal sets the stage
for the state to embark on one of the nation's most aggressive
renewable energy programs that will generate income for rural economies
and place Oregon at the forefront of the emerging clean energy economy.
“This
is a complex bill that sets a long-term direction for our energy
policy,” said Rep. Jackie Dingfelder, D-Portland, a chief sponsor of
the bill. “This bill is about taking control of our energy future and
using homegrown renewable resources to do so.”
Opponents say
they support efforts to reduce the state's dependence on foreign oil,
but are against the bill because it doesn't offer enough consumer
protections.
The bill allows utilities to increase rates so they
can invest in renewable energy sources, which are generally more
expensive than traditional fossil fuels such as natural gas and coal.
But the actual economic cost to consumers is still unclear.
“I'm
not challenging the nucleus of this policy ... I just want to have a
backstop for the ratepayers,” said Rep. Chuck Burley, R-Bend, who voted
against the proposal. “We have asked repeatedly what is it going to
cost? The press has asked what it is going to cost. We don't know.”
While
the potential cost to consumers is unclear, supporters say the bill
could be a boon to rural parts of the state as utilities look to expand
wind and geothermal production across Oregon.
“Oregon produces
almost no fossil fuel but it has current and potential renewable
energies in abundance,” said Rep. Greg Macpherson, D-Lake Oswego. “(The
bill) is saying let's buy here in Oregon from our farmers, our timber
owners and our other producers of renewable (energy).”
The
proposal requires the state's largest utilities to draw 5 percent of
their power from renewable sources of energy - like waves, sunlight and
wood - by 2010. The requirements would increase incrementally until the
figure is 25 percent in 2025.
Medium and smaller-sized utilities must meet lower standards.
Opponents included some Republicans and Rep. Mike Schauffler, D-Happy Valley, who is the only Democrat to oppose the measure.
They said they were concerned about the potential rate hikes to customers and asked the body to consider further changes.
Burley
said he wanted to insert a rate cap into the bill to protect
electricity consumers from utility rate hikes above 2 percent.
The
current bill stipulates that if utilities have cost increases greater
than 4 percent they are not required to meet the renewable standards,
but critics said the cap was too high.
Oregon's two largest
utilities, Portland General Electric and PacifiCorp supported the bill.
At least 23 other states have set standards that utilities draw certain
amounts of electricity from renewable energy sources.
The
proposal was vigorously opposed by a coterie of industry groups and
some of Oregon's largest employers who worried the mandates will result
in higher electricity rates. Intel - a company that boasts about its
commitment to the environment - opposed the initiative.
But some lawmakers said renewable energy is a good deal for ratepayers.
“Even if it is slightly more expensive, it stabilizes rates,” Dingfelder said.
The
Portland Democrat said none of the other states that have passed
renewable mandates have experience significant rate increases.
