BY SARAH ROSS
SALEM- The Legislature’s final day of interim committee hearings on Wednesday was certainly not a bore, with the House Committee on Sustainability and Economic Development taking testimony on a statewide energy plan expected to be put into a bill for the 2011 regular session.
The Committee heard from a number of interested parties, including the Northwest Power and Conservation Council, the Oregon Department of Energy, Pacific Corp, PGE, and Northwest Natural, as well as public utility representatives and a consultant from Strategic Initiatives, Inc.
Amidst discussion on things to be considered for a state energy plan, State Representative Cliff Bentz, R-Ontario, asked the panel of energy companies if natural gas is the future for energy in Oregon.
Because of its flexibility and ability to easily integrate with renewable energies like wind and solar power, the answer, at least for the near future, was yes.
“I think in the near term, it’s the future,” said Scott Bolton, Director of Government Relations for Pacific Corp. “Natural gas is the bridge fuel.”
Bolton added that they are integrating renewable energy into the grid as fast as they can; but in order to do that, they need to integrate those sources with something else.
“Right now natural gas is really the only fuel-efficient technology that gives you that flexibility to adopt those new technologies,” he noted.
According to Gary Bauer of NW Natural, a majority of Oregon’s natural gas comes from Canada and the Rocky Mountains. He emphasized that with Oregon’s growing population, demand for natural gas in the state will increase.
Most of the testimony presented addressed the need for greater energy efficiency in the state but saw affordability as the principal necessity when considering a state energy plan.
“The cost of the renewables that we developed to meet the [Renewable Portfolio] Standard cannot push up the overall cost of the utility by more than 4% compared to an alternative,” said John Savage, Commissioner of the Public Utilities Commission. “We’re well below that cap.”
He continued by saying Oregon is looking at two energy futures: one where the state continues with the energy goals put forth by the renewable portfolio standards; and another where utilities will turn to building natural gas, which is deemed the next cheapest alternative.
When asked if Oregonians could achieve energy independence, Joan Dukes of the Northwest Energy and Conservation Council acknowledged that renewable energy works best when it can be integrated with energy sources outside Oregon.
“We would be in a difficult state in the winter if we were to try to produce all of our own [energy], because the renewable energy does have some problems,” affirmed Dukes. “When the wind stops blowing, we have to have something to back that up.”




I think Commissioner Savage’s assertion Renewable portfolios are not pushing the cost of utility portfolios higher by more than 4% is very dubious. PGE and PacifiCorp’s rate increases have been over 20% or more the past two to three years, and much of this is to do with having to build both renewable projects and natural gas projects devoted mostly to backing up the non-base load characteristics of renewable projects. Moreover, if you throw in all the government subsidies underlying the renewables, taking more of a total society cost approach, I suspect the Commissioner’s assertion is a joke.
I think natural gas is a fine fuel, and it unfortunate you’ve got Oregonians trying to stop it’s increased availability. If you want a properous Oregon with more public services, natural gas will assist significantly. No doubt about it.
Finally, I think there is a role for government to help fund finding a new electric energy storage system, such as new battery technology. This would be a big plus for wind energy.