LOC News
Public Purpose Charge Sunset Extension Scheduled for Public Hearing
On Monday, the House Energy and Environment Committee will hold a public hearing on HB 3141. The bill extends the sunset date on Oregon’s public purpose charge, which is set to expire in 2026. In addition to extending the sunset to 2036, the bill updates how funds collected through the public purpose will be allocated for various programs.
The public purpose charge was initially enacted in 1999. That legislation, SB 1149, required Portland General Electric and Pacific Power to charge an amount equal to 3% of each electric company’s revenue that would be paid by each retail customer. The funds generated from the public purpose charge are used for energy efficiency, the development of renewable energy and for low-income weatherization projects. Current statute includes specific fund allocations for various types of projects. The Oregon Department of Energy, Oregon Housing and Community Services department, and the Energy Trust of Oregon are the three entities authorized to administer the funds for the various public purpose charge programs. Many cities, located within the service territory of Portland General Electric and Pacific Power, have worked with the Energy Trust of Oregon to pursue various renewable and efficiency projects.
HB 3141 reduces the public purpose charge from 3% to 1.5% of total revenues. The reduction is a result of new authority provided to the Public Utility Commission to establish an energy efficiency and conservation tariff through the ratemaking process. As a result, the funds that had been collected through the public purpose charge for energy efficiency/conservation will now be collected through rates.
HB 3141 will also expand eligible uses of public purpose charge funds to include investments in distribution-system connected technologies that support reliability, resilience, and the integration of new renewable resources with the distribution system of the electric company. The bill also increases the amount of funds that will be set aside for projects that benefit low-income Oregonians, including weatherization.
Contact: Tracy Rutten Rainey, Lobbyist – trutten@orcities.org
Last Updated 2/12/21