Environmental justice in Oregon won a big victory in recent weeks, on a significant rate case settlement that could set a precedent for similar cases elsewhere.
Sierra Club and environmental partners including Earthjustice and Climate Solutions forged a historic settlement in early August with Spokane-based Avista Corp., as part of a rate case at the Oregon Public Utility Commission.
This win “is just the beginning,” said Dylan Plummer, Sierra Club’s senior campaign representative on this issue. “Rapidly transitioning off of fossil fuels is essential to avoiding climate catastrophe and building resilience for our communities.”
The settlement, which still requires final PUC approval, would:
- Gradually reduce fossil fuel subsidies paid by all ratepayers to connect new homes to main gas lines. As a result of the settlement, Avista’s so-called gas line extension allowances will shrink significantly from 2024 through 2026, and drop to zero in 2027.
- Stop the company from using ratepayer/consumer dollars to pay for anti-climate lobbying and litigation, including campaigns at the national American Gas Association and local efforts to oppose Oregon’s Climate Protection Program.
- More than double Avista’s funding, from $800,000 to $2 million, to help low-income consumers invest in weatherizing their homes, and limit new installation of gas appliances.
- Require the utility to consider non-pipeline alternatives, such as electrification and energy efficiency, and the non-energy impacts on new projects over $1 million.
- Reduce consumer rate increases from a proposed 8 percent to around 5 percent starting Jan. 1.
PUC approval is expected in coming weeks, Sierra Club and its partners said.
“This settlement is a huge victory for working Oregonians, who will no longer have to shoulder the costs of expanding Avista’s fossil fuel infrastructure and support the utility’s anti-climate lobbying and litigation,” said Jaimini Parekh, a senior attorney for Earthjustice.
Avista supplies natural gas in parts of southern and central Oregon; all told, it has 369,000 gas customers and 403,000 electricity customers in three states in the Pacific Northwest, according to the company.
Environmental groups, including Sierra Club, credit public pressure, media coverage, and a broad regional trend toward electrification for their victory in this contested rate case.
In related news, a big gas company--New England’s Eversource Energy--recently decided to leave the relentlessly anti-climate American Gas Association. Sierra Club and its partners hope to push Avista and other companies to follow Eversource’s lead, potentially weakening the national group’s overall clout.