Utilities say meeting Oregon renewables goal could be costly

Private utilities might have to idle plants powered by coal or natural gas, and public utilities might have to give up some supplies of cheap hydropower, their representatives said Tuesday.

In a letter to the Renewable Energy Working Group that the governor named to work on the goal, a coalition of public and private utilities said a renewable energy standard "isn't necessary in Oregon at this time," given efforts under way to expand wind and geothermal power generation.

Kulongoski is standing by the goal he established in January, said spokesman Lonn Hocklin.

Utility executives told the working group Tuesday they support Kulongoski's goal. But, said Tom O'Connor, executive director of the Oregon Municipal Electric Utilities Association, "We want to come up with a renewable energy policy that works for Oregon."

Jeremiah Baumann of Oregon State Public Interest Research Group, a member of the working group, said he was shocked that utility executives said they didn't think the "renewable portfolio standard" was necessary.

"For six months, their posture has been that they're very open to this," Baumann said.

Dave Robertson, a PGE lobbyist, suggested capping the costs utilities and ratepayers would have to incur as they develop renewable energy facilities or creating incentives to make the renewable-energy goals more financially palatable.

Hoklin said it wasn't surprising that utilities initially would express doubts, given that their counterparts did the same in the 20 other states that have adopted similar standards. Hoklin said Kulongoski was firmly committed to requirements.

"He believes mandates bring about certainty and assure the public there are real goals and real means of achieving those goals," Hoklin said. "Other states have done it. Oregon can do it, too."