Oregon natural gas utility can’t ask customers to pay for political spending, new pipelines - OregonLive

Oregon natural gas utility can’t ask customers to pay for political spending, new pipelines - oregonlive.com

Avista, Oregon’s second largest natural gas utility, can no longer make customers pay for its political activities and subsidize new residential gas pipelines, according to the terms of a settlement agreement approved by the Oregon Public Utility Commission.

Thursday’s settlement includes a smaller rate increase of 4.7% – instead of the 8% sought by the company earlier this year. It also increases Avista’s low-income weatherization program budget from about $800,000 to $2 million.

Avista serves more than 106,000 customers in parts of southern and eastern Oregon.

The settlement marks the first time in Oregon history that a gas utility will phase out charges called line extension allowances, in which all customers bear the cost of connecting new buildings to the gas pipeline system. Without the subsidies, an individual developer or homeowner would have to cover the costs of new pipelines.

“This is a big win for working Oregonians who will no longer have to pay for fossil fuel subsidies or political activities that prolong dependence on harmful methane gas,” Jan Hasselman, senior attorney for Earthjustice, said in a written statement. Environmental groups and Earthjustice attorneys challenged Avista’s practices before the commission.

Climate activists who oppose the expansion of the natural gas system say line extension allowances encourage new homes to be built with gas at a time when gas utilities should instead drastically reduce their emissions.

A natural gas fact-finding investigation released by the Public Utility Commission earlier this year found that growing the gas system in Oregon and adding new hookups will increase emissions and drive up utilities’ costs to comply with the state’s climate mandate to reduce fossil fuel emissions– which is likely to lead to rate increases for all customers.

Last October, state regulators ordered NW Natural, Oregon’s largest natural gas utility, to reduce – but not completely phase out – its line extension allowances. Avista’s line extension subsidies are more than double those of NW Natural.

State regulators also a year ago ordered NW Natural to no longer charge political expenses such as lobbying to its customers.

The Avista settlement also restricts political spending by the gas company – specifically, it can no longer use customer money to litigate against the state’s signature Climate Protection Program. It also cannot charge customers to pay dues to the American Gas Association and NW Gas Association, politically active trade groups that rally against climate action.

“The parties agreed to certain modifications related to our line extension policies and the exclusion of certain costs. Avista views this as a part of the process of reaching a balanced and constructive outcome for all parties,” said Lena Funston, an Avista spokeswoman.

– Gosia Wozniacka; gwozniacka@oregonian.com; @gosiawozniacka

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