Energy Trust of Oregon explained

Energy Trust of Oregon is an independent nonprofit organization based in Portland, Oregon, United States, offering services and cash incentives to customers of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, and Avista in Oregon. It also serves customers of NW Natural in Washington.

History

In 1999, the Oregon Legislature passed an electric industry restructuring law, SB 1149, aimed at establishing a stable funding source for residential, commercial, and industrial electric efficiency, renewable energy, and market transformation programs. [1] This legislation mandates the state’s largest investor-owned electric utilities to collect a 3% public purpose charge and authorizes the Oregon Public Utility Commission(OPUC) to allocate a portion of these funds to an independent non-governmental entity.

In 2000 and 2001, the OPUC, along with interested parties, played a pivotal role in establishing the nonprofit Energy Trust of Oregon. Governed by an independent board of directors, the organization operates under a grant agreement with the OPUC. In 2001, Energy Trust formalized its structure by adopting articles of incorporation and bylaws, and appointed its inaugural executive director. Additionally, Energy Trust established three advisory councils—the Conservation Advisory Council, Renewable Energy Advisory Council, and Diversity Advisory Council—to offer stakeholder insights on programs, budgets, and action plans.

Energy Trust commenced operations in March 2002, tasked with investing in cost-effective electric energy efficiency, subsidizing above-market costs of renewable energy resources, implementing market transformation programs, providing services with minimal administrative and program support costs, and ensuring high levels of customer satisfaction.

Funding

Energy Trust is funded by customers of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas and Avista. Customers of these five utilities pay a dedicated percentage of their utility bills to support a variety of energy efficiency and renewable energy services and programs.

As a result of SB 1149, which applies to electric energy, PGE and Pacific Power collect a 3% public purpose charge from their customers to support the following:

  1. Energy conservation in K-12 schools delivered through school districts
  2. Low-income housing energy assistance delivered through Oregon Housing and Community Services
  3. Energy efficiency, renewable energy and market transformation programs for residential and business customers delivered through Energy Trust, an independent, third-party

Funding for natural gas efficiency comes from public purpose charges paid by Oregon customers of NW Natural, Cascade Natural Gas and Avista. This funding is provided pursuant to settlement agreements in OPUC proceedings. Energy Trust administers the funds through contracts established with NW Natural in 2003, Cascade Natural Gas in 2006 and Avista in 2017. In 2009, through an agreement with NW Natural and the Washington Utilities and Transportation Commission, Energy Trust also began serving NW Natural's customers in Washington.

In 2007, the Oregon Legislature passed the Oregon Renewable Energy Act, SB 838.[2] Through the legislation, the collection of the 3% public purpose charge was extended from 2012 to 2026, and PGE and Pacific Power were allowed to seek additional electric efficiency funding above the 3% public purpose charge with the goal of avoiding the need to purchase more expensive electricity. Energy Trust receives supplemental funds authorized by the legislation.

Goals

As part of its oversight of Energy Trust, the OPUC adopted performance measures against which to benchmark Energy Trust's performance.

Energy Trust provides the OPUC with quarterly and annual reports measuring actual performance against the target metrics. Energy Trust also maintains operational goals to maximize investments.

Programs

In general, Energy Trust operates its programs through contracts with service providers. A volunteer, non-stakeholder board of directors oversees Energy Trust management, provides strategic and policy direction and approves the organization’s budget and major expenditures. The board carries out its oversight with guidance from three advisory councils: Conservation Advisory Council, Diversity Advisory Council and Renewable Energy Advisory Council. [3] Energy Trust offers cash incentives for a variety of energy-efficiency improvements and renewable energy systems for homes, businesses, industrial facilities, agricultural operations and public and nonprofit buildings. Other assistance provided includes information, services and technical assistance to help ratepayers identify and prioritize projects that fit their budget and goals. Incentives and assistance are offered through the following program categories:[4]

Residential

Commercial and Industrial

Renewable Energy

Notes and References

  1. Web site: Oregon Public Utility Commission. Restructuring Law SB1149. Oregon.gov. State of Oregon. 5 January 2012.
  2. Web site: Oregon Legislative Assembly. Senate Bill 838. Oregon Renewable Energy Act. State of Oregon. 5 January 2012.
  3. Web site: Energy Trust of Oregon. Who We Are. energytrust.org. 5 January 2012. https://web.archive.org/web/20111124163127/http://energytrust.org/About/who-we-are/BoardofDirectors.aspx. 24 November 2011. dead.
  4. Web site: Database of State Incentives for Renewables and Efficiency . Energy Trust of Oregon . DSIRE . US Department of Energy . 5 January 2012 . dead . https://web.archive.org/web/20111102083744/http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=OR05R&re=1&ee=1 . 2 November 2011 .