Yesterday, Oregon Governor Ted Kulongoski signed into law a Renewable Portfolio Standard (RPS) requiring that 25% of the power produced by the state’s largest utilities come from renewable sources by 2025.
The RPS requires 5% by 2011, 15% by 2015, and 20%by 2020.
"This bill is the most significant environmental legislation we can enact in more than 30 years that will also stimulate billions of dollars in investment creating hundreds, if not thousands, of green jobs in both urban and rural Oregon," Kulongoski said. "Today we are … protecting our quality of life, reducing greenhouse gas emissions, stimulating our economy and protecting ratepayers with more stable and predictable utility rates."
To qualify for the RPS, utilities must have installed renewable energy sources after Jan. 1, 1995. That means much of Oregon’s hydropower resources will not qualify, although upgrades to existing hydro will.
One loop hole in the bill is that utilities can get out of the requirement if its costs mean more than a 4% hike in ratepayer charges.
The bill affects Portland General Electric (POR.N), PacifiCorp., a Berkshire Hathaway Inc. (BRKa.N) unit of Mid-American Holdings Co. and Eugene Water and Electric Board.
Smaller utilities – those that provide under 3% of the state’s electricity – will need to meet less demanding targets.
Oregon is the the 24th U.S. state to establish a RPS.
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