Sen. Ron Wyden, D-Ore., led a round-table discussion Wednesday in Eugene to discuss the recent energy crisis with representatives from the utility industry, consumer and conservation groups and government officials.
The group agreed that California has been taking energy from Oregon but has not been giving anything in return.
Wyden held the round-table discussion in Eugene Water & Electric Board’s north building to get ideas of how to increase the Northwest’s energy supply. Suggestions included increasing conservation methods as well as putting pressure on California to compensate for the energy Oregon has provided for the struggling state.
Wyden said he wanted proof of California’s contribution to our market, believing the deregulated California market has taken energy that isn’t being compensated for.
“We cannot let California use the Northwest as a scapegoat for its botched energy plans,” Wyden said. “They are not a good neighbor when it comes to the energy issue.”
Jason Eisdorfer, resident utility adviser for the Citizens’ Utility Board, said California has set aside $250 million for its own conservation efforts. He suggested California send a portion of this money to repay Oregon’s supply.
“California expects us to send them energy now and in the summer,” Eisdorfer said. “They should be sending us a portion of their funds so we can afford to send the energy.”
Alan Zelenka of the Emerald Public Utility District suggested California invest in Oregon’s energy market, and in return, Oregon would guarantee to share power with California.
Another concern raised during the discussion was how to increase Oregon’s generation capacity and conserve the low amount of energy currently being produced.
Wyden suggested helping older facilities replace slow equipment and investing in alternative energy sources, such as natural gas.
“By relicensing hydroelectricity, we could get smaller generators more capabilities without harming the environment,” Wyden said.
But activists worry that increased production would set back environmental efforts. Randy Berggren, EWEB general manager, expressed this concern.
“We need to hold onto our principle of protecting the environment, despite the supply-and-demand issue,” Berggren said.
Wyden said the government will not take an approach that will harm the environment.
Several members of the discussion suggested a market price cap to regulate electricity prices.
Steve Hickok, chief operating officer of Bonneville Power Administration, argued that price caps could do more harm than good.
“We are currently buying in an unregulated market,” Hickok said. “If price caps went into effect in March, when we sell into the market rather than buy, we would be financially toast.”
Other states have discussed selling off their hydroelectric facilities into the energy market to pay for increased energy prices, something Wyden said won’t happen in Oregon. Another concern was that such deregulation could result in a situation much like California’s.
Energy Secretary-designate Spencer Abraham had previously been in favor of selling off Bonneville Power Administration and the energy industry, but Wyden said Abraham’s feelings have changed.
“I’m encouraged by what Abraham’s indicated: that he will break with the past and not sell off Bonneville,” Wyden said.
Wyden said that if Oregon deregulates its energy industry, it won’t be anything like California’s “botched” efforts. Wyden will be taking suggestions from Wednesday’s discussion to Abraham during a Senate confirmation hearing Thursday.
“This is an extraordinarily serious issue,” Wyden said. “I will use all my energy and strength to follow up on the issues to provide clean, affordable power.”
Senator blames deregulation for energy shortage
Daily Emerald
January 17, 2001
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