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Utility Advocates News, Winter 2023

Diane Henkels

Greetings SBUA Oregon Members!

This newsletter informs you, SBUA Oregon members and supporters, on how SBUA in Oregon is advocating for Oregon’s small business community to ensure fair and reasonable electricity and natural gas rates and service.

In Oregon we are going pedal to the metal on implementing the recent state law to remove carbon-based sources from the State’s power supply and we have decided as a state that the ratepayers will foot the bill, so small business needs to be at the table in the rate cases. We also try to participate in other efforts like transportation electrification plans, Integrated Resource and Clean Energy Plans, and distributed energy generation, Energy Trust related topics, and other state and local government efforts.

SBUA Activity in the Oregon Public Utility Commission (“PUC”) dockets:

PORTLAND GENERAL ELECTRIC 2023 Rate Case— The utility proposes a 12.6% increase for small commercial customers beginning January 1, 2024. Schedule 32 customers paying $121.41 will see an increase to $136.75.

PGE RATE CASE PUBLIC HEARING ON MAY 3, 2023 6 PM SBUA to send out Zoom and public comment info.

UG 435 NW Natural asked a 9.7% increase in rates and SBUA secured a reduction to 9.2% for small business customers, and NW Natural is required to examine a possible intra class subsidy. PUC required small business to pay for part of the $10,000,000 in COVID-19 program costs due to receiving what the PUC calls “indirect benefits” adding about .8% per small business bill.

UE 399 PacifiCorp dba Pacific Power asked a 10.3% increase in rates and SBUA secured a reduction to 8.4% and increased rate design alternatives, specific small business web presence, and a Standard Industrial Classification (SIC) report. PUC found small business received “indirect benefits” from the $17,000,000 COVID19 programs costs and requiring small biz to pay some.

Help fund SBUA participation in the PGE Rate Case:

Donate to SBUA so that we can participate fully in the PGE Rate Case. We need to be at the table with industrial and large commercial (like Target, Microsoft, etc.) and the residential customers. Other ratepayers will receive ratepayer funds to participate. Small commercial representation will ensure that this utility customer class will get a fair and reasonable share of the pie. We need your donation to do that!

OPUC Planning:

Much of the Commission’s 2023 activity will be regarding planning. Please refer to our last newsletter to learn of the planning dockets on behalf of small commercial utility customers: Utility Advocates Fall 2022 Newsletter

Electrifying Transportation:

Advanced Clean Cars II Regulation: These rules require auto manufacturers to deliver 100% new zero-emission battery electric and plug-in hybrid electric vehicles by 2035. Rules were adopted on 12/19/22.

Impacts on small businesses identified: EVs require fewer repairs and subsequently less potential business for vehicle repair shops, and reduced sales to small gas stations. Also, EV fleet purchase options impact local government and potentially larger small businesses. See report.

The electric utilities are required to submit transportation electrification plans and SBUA has learned that affordability of the vehicles, location of charging stations near groups of small businesses, and reliability of the charging stations are key interests for small commercial customers.

Legislature: 2023 bills push to increase Electric Vehicle purchase, clean up exhaust, and reduce transportation-caused greenhouse gases (“GHG”). SB 525, See full bill info.

Local Government Climate Planning:

Local governments across the state are planning how to each use funds to invest into clean and renewable energy to address climate concerns. SBUA Oregon ourselves, are engaged in Portland Clean Energy Fund’s (PCEF) Climate Investment Plan (CIP) by participating in the “Small Commercial” roundtable discussion topic and providing input for small businesses. Through SBUA’s participation in these roundtables we have learned how PCEF is strategizing on how funds will be spend for Portland’s small commercial buildings. For example, PCEF seeks to maximize benefits not just for the small commercial building owners through energy efficient building upgrades but as well for specific energy efficient equipment that would directly benefit small commercial customers and the customer base they serve.

2023 Oregon Legislature:

Of the over 1,800 bills in 2023, SBUA Oregon has identified several to track for our members and supporters in regards to bills impacting small business due to utility and energy regulation. The SBUA Oregon Advisory Committee provided input on which bills to prioritize tracking this 2023 legislative session.

Senate Committee Bills

Senate Committee on Energy & Environment

SB 54: Removes provisions of property tax exemption for solar projects that restrict exemption to proportion owned by residential customers or leased by residential subscribers. See full bill info

SB 522: Changes name of “Oregon Global Warming Commission” to “Oregon Climate Action Commission”. Modifies membership and duties of commission. See full bill info

SB 852: Directs State Department of Energy to establish program to provide assistance related to energy projects and activities to environmental justice communities. See full bill info

House Committee Bills

House Committee on Climate, Energy, & Environment

HB 2534: Requires State Department of Energy to work with stakeholders to identify areas of inquiry regarding energy and energy use in this state. See full bill info

HB 3016: Establishes Community Green Infrastructure Grant Program, Fund, & Task Force: See full bill info

HB 2700: Modifies zero-emission and electric vehicle rebate programs to allow rebate for purchase or lease of electric farm tractor or repowering of farm tractor: See full bill info

2023 Federal Legislation:

The federal government has passed two landmark bills to aid utilities and state agencies in funding projects to target decarbonization and electrification. SBUA has complied small business specific points of relevance regarding both federal bills. See PUC Staff slides for summary of a breakdown of federal energy funding: Federal Funding Opportunities for the Electricity Sector

Infrastructure Investment & Jobs Act of 2021 (IIJA)

  • Helps build physical infrastructure to support the clean energy transition. (Grid modernization, transmission, EV charging stations)

  • Mostly in the form of grants, available over 5 years.

  • Both bills provide grants for converting commercial fleets

Inflation Reduction Act of 2022 (IRA)

  • Creates incentives for the market to adopt to energy efficiency standards and zero emissions.

  • Extends tax credit for residential and commercial EV charger installations, modifies it to allow bidirectional charging equipment and encourages labor standards for EV purchases.

  • Commercial clean vehicles, up to $7,500 or $40,000 (by weight). -Energy Efficient commercial building tax deduction, $5 per sq. f.

    Fact Sheet: How the Inflation Reduction Act Will Help Small Businesses

Upcoming Events

SBUA @ OAME Trade Show May 11th, 2023: Register here. Look for us co-tabling with Lewis & Clark.

SBUA Oregon visited our friends, the Jackson County Fuel Committee’s new building in Phoenix, Oregon after the disastrous fire, and are discussing a joint gathering in Ashland towards Summer ’23.

Thank you East Portland Chamber of Commerce (“EPCC”)!

In January 2023, our friends at EPCC invited SBUA Oregon to present at EPCC’s weekly member meeting. SBUA Oregon providing EPCC with an update since the last presentation we had with this chamber. Our update included our 2022 PUC activity as well as the 2023 legislative bills. We also compiled a list of area legislators and Legislative Committees to flag to EPCC members so they may reach out and be heard!

Please Donate

PLEASE DONATE TO SBUA NOW TO SHOW YOU SUPPORT FAIR AND REASONABLE ELECTRIC AND NATURAL GAS UTILITY RATES FOR OREGON’S SMALL BUSINESSES

Click on the orange donate button in the upper right corner of the Utility Advocates website.

Secretary Fagen’s Office of Small Business Assistance releases Oregon’s State of Small Business Report.

Highlights:

  • Costs of starting a small business has increased and paired with lack of state agency technical support has discouraged entrepreneurs.

  • NOTE: The Secretary of State Corporations Division first showed strong interest but then declined from participating in SBUA’s Advisory Committee.

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