Energy bill makes it to House

Washington State

May 17 - McClatchy-Tribune Regional News - Gail Kinsey Hill The Oregonian, Portland, Ore.

A high-profile renewable energy bill is on its way to a House vote after a committee tacked on two compromise amendments aimed at clinching majority support.

But opponents led by economic powerhouses such as Intel say they haven't given up the fight for more revisions aimed at containing potential electricity rate increases.

The bill pits utilities, environmentalists and residential consumer groups against large industrial customers. Arguments over potential rate increases and environmental and economic impacts have reached a fever pitch as a vote by the House has neared. A similar bill already has passed the Senate.

Senate Bill 838 would require large utilities such as Pacific Power and Portland General Electric to get 25 percent of their electricity from renewable energy sources, such as wind and solar, by 2025. Gov. Ted Kulongoski supports the mandate and considers it a centerpiece of his energy agenda.

Proponents maintain that the requirement is needed to develop renewable energy, fight climate change and stimulate an emerging industry of clean-technology companies. Kulongoski has worked closely with Pacific Power and environmental lobbyists to craft the details and solidify support.

Opponents have pounded away on the potential economic repercussions. Manufacturers say they already face high energy costs and would suffer from further rate increases. Semiconductor makers and forest products companies are the most vocal critics.

Both sides say the rate impact of the bill is impossible to gauge with any precision.

But, critics are insisting on provisions that would block sharp rate increases, should they loom. They appeared to get part of what they wanted on Wednesday with an amendment that further defined the terms for regulatory review.

The Oregon Public Utility regulates Pacific Power, Portland General Electric and other investor-owned utilities. Under the bill, rate review would require thorough hearings, complete with legal briefs and evidentiary records.

"With the amendment there should be no doubt that those who want to protect consumer rights will have an absolute opportunity to do so," said PUC Chairman Lee Beyer. "It's like having a belt and two sets of suspenders."

The Industrial Customers of Northwest Utilities, a business group representing large electricity users, is pushing for additional amendments. It wants the Legislature to establish a 2 percent annual rate cap and temporarily waive requirements if the cost of adding more renewable power were to have "a material adverse impact" on consumers.

Rep. Chuck Burley, R-Bend, introduced these amendments to the committee, but they were voted down.

After the Democrat-controlled committee passed the bill on a 4-3 party line vote, Burley vowed to try to block a floor vote and send the bill back to committee for further revisions. Such a move, known as a re-referral, already has happened once with SB 838, resulting in the Wednesday meeting.

Democrats and other bill supporters say they're frustrated by critics' procedural tactics. The bill contains adequate consumer protections including a 4 percent cap on the additional costs of acquiring renewable power, they note.

"We have absolutely addressed their concerns," said Rep. Jackie Dingfelder, D-Portland, chairwoman of the energy committee.