Energy Matters Update - September 6, 2007

Volume 4, Number 5

Oregon gas company

among first to offer green power

Electric customers are familiar with utilities’ “green power” programs that allow them to invest in clean energy projects that offset the greenhouse gases emitted during production of the power they use.

Now, an Oregon natural-gas utility is offering its customers a similar opportunity. On Aug. 29, the Oregon Public Utility Commission unanimously approved a groundbreaking proposal from NW Natural. The utility’s new “Smart Energy” program will allow customers to buy “green” natural gas to make up for the carbon dioxide emissions associated with using gas to warm their homes, heat their water, cook their meals and dry their clothes.

How it works

Residential customers may choose between paying a flat rate of $6 per month, based on residential customers’ average use, or pay 10 cents for each therm they use.

The program will be in place in time for this year’s heating season, and the company is already enrolling Oregon customers through its Web site, www.nwnatural.com/smart. Proceeds will help develop biogas as a substitute for natural gas. Some proceeds will enhance projects aimed at reducing gas use in factories and commercial buildings.

A typical project highlighted in the utility’s press announcements is to help dairy farmers buy digesters that capture methane from manure. This not only reduces emissions of methane — a greenhouse gas 23 times as potent as CO2 — it also cuts farmers’ waste-treatment costs. The methane is then used to generate electricity for the dairy or to sell into the grid, creating an income opportunity for the farmer. Long-term, the company hopes advances in methane treatment technology will make it cost effective to put the methane into its pipelines.

A well-established partner

When developing projects, NW Natural will work through the Climate Trust, a non-profit established in 1997 to fund projects that reduce CO2 emissions from electricity generation. By law, owners of new electric generation in Oregon must mitigate a portion (about 17 percent) of emissions either directly, or by paying the Climate Trust to do it for them. The Trust is nationally recognized for innovation and integrity in developing, tracking and monitoring long-term greenhouse-gas reduction projects.

NW Natural, a member of the NW Energy Coalition, is among the first gas utilities anywhere to offer its customers a green power program. The first customer will be the utility itself. NW Natural will contribute enough money to offset the emissions from the use of natural gas in all of its facilities. In addition, the utility’s shareholders will foot the first-year development, advertising and other expenses of about $288,000.

NW Natural officials say that money will be well spent. The utility will gain knowledge and experience that will prove useful in dealing with future CO2 regulation.

Additional Links:

NW Natural's Smart Energy program webpage