August 2011

2011 Oregon Legislature Session

Dear Member:

The Oregon Legislature adjourned June 30, ending a grand experiment in co-governance and passing major proposals dealing with health care, tax policy and education.

Working through the Oregon Rural Electric Cooperative Association, Oregon’s electric cooperatives were active in the Legislature, working to remind lawmakers about the importance of affordable and reliable electricity.

The issue of rate affordability was at the forefront as ORECA worked to defeat a growing trend in the Legislature: adding surcharges to your electric bill to finance a variety of new projects.

In addition, ORECA blocked several proposals that added a variety of new fees and mandates for your electric cooperative. These proposals would have increased electric bills for members and overridden the local control of your cooperative and member-elected board of directors.

While many of these projects are worthwhile, ORECA is concerned your electric bill could become a new source of revenue for governing entities wanting funding for various projects.

On the energy front, the Legislature shied away from sweeping proposals that characterized the last two sessions, such as renewable portfolio standards, and cap and trade. Instead, the Legislature focused on more targeted legislation, such as debating the future of the Oregon Department of Energy and reforming the Business Energy Tax Credit for renewable energy projects.

Ultimately, the Legislature deferred action on the future of the Department of Energy, but significantly scaled back tax credits for renewable energy.

Because Oregon’s electric cooperatives take energy efficiency and conservation seriously, they were involved in one of Gov. John Kitzhaber’s signature initiatives: weatherizing Oregon schools to create jobs and create a better educational environment for our kids.

The Legislature will return in February for a 45-day session. The proposals will be different, but the mission of your local electric utility will not change: ensuring that legislation allows local control of decision-making, and keeps electricity affordable and reliable.

 

Bill A. Kopacz

General Manger

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