EFFECTIVE ENERGY MANAGEMENT
Effective Energy Management Can Mitigate
Increasing Energy Rates and Climate Regulations
In 2000, NWFPA formed an energy task force to help food processors find ways to weather the West Coast energy crisis. Thirteen
years later, the energy crisis is over, but energy issues still present challenges for food processors, primarily because they put
upward pressure on energy costs. Three of the most prominent energy issues affecting the industry today are:
1. Renewable energy mandates: Both Oregon (RPS)
and Washington (I-937) have set requirements that 15
percent and 25 percent of a utility’s energy sources
must come from renewa ble energy by 2020 and 2025,
respectively. Electricity generated by wind ($112/MWh)
and solar ($200/MWh) is significantly more expensive
than natural gas-fired turbines ($58/MWh) and energy
efficiency ($18/MWh).
2. Bonneville Power Administration costs: BPA’s electricity rates will soon be increasing for a number of
reasons, including upgrades to an aging transmission
system, integrating large amounts of wind into the
system (resources are displaced when the wind blows
and back up is needed when it does not), and reduced
BPA revenue from the sale of excess hydropower energy
due to low natural gas prices driving down prices.
3. Greenhouse gas emissions: Both Oregon and Washington have set greenhouse gas emissions targets and
are developing programs to reduce emissions. Transportation, electricity generation, and residential/commercial/industrial uses are the three areas that will be
affected. Programs being considered include cap-and
trade, carbon tax, low carbon fuel standards, renewable
fuel standards. On October 28, 2013, the Governors of
California, Oregon, Washington, and the Canadian prime
minister, signed an agreement to take actions to reduce
emissions. Washington Governor Jay Inslee committed to
enacting cap-and-trade, Oregon Governor John Kitzhaber pledged to set a price on carbon, and both governors
promised to adopt low carbon fuel standards.
For the past ten years, food processors have been working collectively within NWFPA to represent their interests before state
legislatures and agencies. They also recognize that energy
Continued on page 12 w
SAVING ENERGY
MEANS STAYING AHEAD
OF THE COMPETITION
RUN SMARTER, RUN CHEAPER
Efficiency isn’t just a buzzword—it’s a way for your company to
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Let Energy Trust of Oregon help you trim your operating budget with
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+ control of your energy costs. Call us at
Take
1.866.368.7878 or visit www.energytrust.org.
Serving customers of Portland General Electric,
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8 NWFPA NW REPORTS – WINTER 2013
Celebrating 100 Years