PGE Renewable Power

The Costs of Change

The Power to Make a Difference

• Who & What we do

• Where we are today & where we came from

• What are renewables & examples

• PGE System mix and Carbon

• Transmission Costs

• Carbon Costs

• Development Costs

Fast Facts on PGE’s Renewable Program

Almost 67,000 customers enrolled!

Customer satisfaction increased among

customers who know about the program

Working with Green Mountain to help market &

supply options to customers

Customers choose to pay a small premium for renewable energy

PGE’s renewable program is 1st in

the nation for residential

“green” power sales

Oregon helps lead the way for renewable power

• PGE ranked 1st nationally for residential kwh (2007)

• PGE ranked 2nd nationally for all customers kwh

• PGE ranked 1st in NW for participation rate – 8.5%

• Pacific Power also ranked highly in nation and NW

Oregon helps lead the way for renewable power

• PGE renewable customers Dec. 2001: ~ 4,900

• July. 2008: ~ 66,129

• PGE has almost 10% of all renewable power customers nationwide

What is renewable power?

• Energy from sources that naturally replenish– Wind, Solar, Geothermal, Low-Impact Hydro, Biomass

• Low environmental impact

• Doesn’t deplete natural resources

PGE renewable power types

• Wind power:– Wind spins blades

that turn a generator

• Biomass energy:– Combustion of wood

waste creates steam that spins turbines turning a generator

PGE renewable power types

Biomass (conversion of biological materials)

• PGE “BioGas”– Methane from cow manure burned to

run generator

– Methane is 20X more harmful as greenhouse gas than the CO2 created when it burns

– 220,000 kwh a year from CalGon Farms, Salem

– BioGas power mixed with renewable power sold to large commercial- industrial customers

Biomass3%

Source: Oregon Office of Energy, 2002 data.

Renewable power vs. routine power

Hydro43%

Nuclear3% Natural Gas

9%

Coal42%

Wind & Geothermal>4%

Oregon Electricity Mix

Hydro

PGE renewables environmental impact

• Offsets since 1999 ~ 1,000,000,000 lbs of CO2

• Offsets other thermal power plant emissions and impact on fish at hydro plants

Transmission Costs in our Future

• For Wind in the NW from East to West and to the South into CA

• For Concentrated Solar Power projects in the SW in remote desert locations to population centers to the SW and the West Coast

• Inland from Tidal and Wave projects to the East

Determining the True “Costs” of Carbon

• Cap and Trade to start: will mandate higher energy costs

• Impacts from higher carbon costs will be regional, some areas pay more some pay less.

• Costs of future carbon legislation to deal with non-linear effects from Climate Change

Development Costs

• Costs of developing cost effective wave and tidal power generation

• Costs for perfecting fuel supplies for biomass projects

• Costs for development of a “Smart Grid’ to facilitate development of distributed renewable generation

Investing in the Future

• The costs are high and may be getting higher but the returns are real

Thanks!