The more renewables, the more we pay – Hasso Hering - Hasso Hering

The more renewables, the more we pay - Hasso Hering

Pacific Power’s Hazelwood Substation on 17th Avenue in southwest Albany on Monday afternoon.

One of the reasons Pacific Power gives for asking for a big price increase next year is that it wants to make “continued investments in low-cost renewable energy resources.”

You’d think that low cost would translate to a lower price for consumers. But apparently the opposite is the case. The more “green” energy we demand, the more it’s going to cost.

Last week Pacific filed its rate proposals for 2025 with the Oregon Public Utility Commission. Combined, the various proposals would result in a 17 percent revenue increase of roughly $304 million.

This comes on top of electric rate increases that took effect last month. They averaged 13 percent for residential customers and nearly 17 percent for large commercial and industrial customers.

For the proposed increase next year, Pacific Power cited “key factors” that included wildfires, investments in transmission lines, more renewable energy sources, and the cost of capital.

Unless you rely on electricity for heating, it seems to me that the price of power is still relatively modest compared to everything else, especially insurance.

But Oregon’s official drive to force down the use of fossil fuels is a factor in raising the price of power.

Pacific talks about the need to develop more “low-cost renewable energy resources.” But renewable sources don’t necessarily lower the price of electricity.

In one of its brochures available online, Pacific compares three price options for residential customers. The options are based on the mix of power sources in each, which seems like fiction because our lamps and toasters don’t care whether the electrons in the wires were generated from wind or coal or hydro dams.

Still, the Pacific brochure says the price of 1,000 kilowatt hours of juice was $63 in the basic plan, where 59 percent was generated by burning coal.

The price was two dollars more in the plan called “Blue Sky Block” based on 54 percent coal and 16 percent wind power.

In the Blue Sky Usage plan (82 percent wind and no coal) it was $73. And if you wanted also to help pay for improving fish habitat, you could spend $76 in the Blue Sky Habitat plan, also mostly wind and solar.

Chances are this breakdown of prices was superseded by the price hike in January. Still, it makes the point that the more renewable the mode of generation, the higher the price.

But don’t complain to the utility. This is what Oregon wants. Or rather, it is what Oregon policy makers, including the majority elected by the people, demand. (hh)

If you ever need your exact coordinates on the earth’s surface, just check the sign on the nearest Pacific Power substation.