History offers key to state’s energy dilemma
By MIKE McLAIN
Of the Emerald
Editor's note: This is the first in a
three-part article about the future
of energy production in the
Northwest Today's story traces
the development of the region's
public and investor-owned
utilities
For many years, Oregon has
enjoyed some of the lowest elec
tricity rates in the nation.
And we've wallowed in the lux
ury, consuming the juice at twice
the national per capita rate
But those times are gone and
the prognosis for the state is a
tightening of the energy belt and a
loosening of wallets for rising
elctricity bills
Since the 1973 energy crunch,
the electric bills of 80 per cent of
the state s residents — those
served by investor-owned utilities
(lOU's) such as Portland General
Electric — have risen to appoint
where they almost double that of
/
public utilities commission (PUC)
customers, like those served by
the Eugene Water and Electric
Board (EWEB).
These customers are also pay
ing bills that are almost twice as
high as those of the majority of the
Washington state s residents.
Gov Bob Straub wants to put
an end to this price disparity, and
— one way or another — it looks
like he will succeed at the expense
of Washington's residents and
Oregon's PUC customers.
In order to understand what is
happening a little history, as pro
vided by Oregon Deputy Public
Utility Commissioner Ivan Gold, is
in order
The present price disparity is a
result of "brutal idealogical bat
tles m the 1930s, when Oregon
decided to satisfy most of its
energy needs through private util
ity companies — the lOU's. Only
20 per cent of the state is served
by PUC s.
The state of Washington opted
for the reverse ratio
The Bonneville Power Ad
ministration, with its system of fed
erally built hydro-electric dams
throughout its service area (which
includes Oregon, Washington,
Idaho and Western Montana) had
ample power to satisfy everyone's
needs. And the power was cheap
But this inexpensive power
began to attract energy-gobbling
industry, such as the aluminum
plants Though there was suffi
cient power at the time, concern
about the future resulted in the
federally mandated BP A energy
preference clause. This clause
required that the needs of the
PUC’s be met first, with the lOU’s
and industry having rights to
“firm cheap hydro-power granted
by 20-year contracts.
As long as there was sufficient
power, there was a 20 per cent
price disparity between the PUC's
and the lOU's because of the IOU s
profit margin, higher taxes and
higher interest on capital con
struction bonds.
Phase One" regional power
policy, as Gold termed the period
when all energy needs were
served by hydro-generation,
came to an end in 1973. In that
year, due to regional energy load
growth and the expiration of “firm"
energy contracts signed by Oregon
lOU's in the early 1950s, the lOU’s
were forced to begin construction
of additional facilities to augment
their power supply.
Thus begins Gold's “Phase
Two. The region s lOU’s began to
mix cheap BPA power with ex
pensive thermal power from
newly-constructed coal or
nuclear-driven steam generators,
driving up electric bills.
But the higher prices were suf
fered only by those IOU custom
ers locked out by the “preference
clause,” or by customers of PUC’s
such as EWEB, whose rapid load
growth forced investment in ther
mal projects. EWEB has 30 per
cent ownership of Trojan Nuclear
Plant, but presently passes the
energy — and most of the in
creased cost — to consumers in
California. As that energy be
comes needed here, EWEB bills
will reflect the added expense. But
regionally this is a rare move.
Most PUC’s are assured of ade
quate hydro-power.
Since Washington’s ratio of
lOU’s to PUC’s is higher (60 per
cent of Washington's utilities are
publicly owned as opposed to
Oregon’s 20 per cent), there is a
growing rift in energy prices paid
by the two states. The majority of
Washington customers pay ap
proxi mate ly $ 10 per 1,000 ki lowatt
hours, compared to $24 paid by
the majority in Oregon, according
to figures compiled by Straub's
staff.
Straub has made it one of his
highest priorities to end this “un
acceptable disparity." He has
proposed a Domestic and Rural
Power Authority which would en
able Oregon s IOU customers to
circumvent the “preference
clause ” But many people con
sider this a “blackmail’’ effort to
produce a new regional power pol
icy. Tuesday s article will examine
Straub s plan and describe Gold’s
"Phase Three" in the develop
ment of regional power policy.
Heat loss photographs
readied for public view
Aerial photographs to indicate heat losses from homes in the
Eugene-Springfield area taken last Monday will be available to
the public next week
A Texas Instruments. Inc. helicopter was contracted by Bon
neville Power Administration (BPA) to photograph parts of
Eugene-Spnngfield to find out how effective the infra-red system
is in detecting heat loss. This is a part of a BPA program to bring
the energy-saving qualities of good insulation to the public's
attention
Heat radiation will show up as light spots in the pictures and
cold areas will be black. It looks like a valuable tool, but we won't
know until the results are in." said Ladd Sutton of the BPA s
Eugene office
A flyover had been attempted prior to Monday, but fog made
it impossible toget clear pictures. We couldn't have waited much
longer because the air was getting moist, said Sutton.
Last Monday was chosen because the temperature was 37
degrees and the radiation temperature was 34 degrees. Such low
temperatures are important conditions for obtaining correct heat
readings.
"We think the temperature should have been colder, but they
told us they oould do it at that temperature.” notes Sutton.
The BPA will work with the area utilities on ways of present
ing the findings to the public. But Sutton cautioned, "They can t be
taken at face value. There are a lot of variables such as heat loss
from windows and night-set thermostats that have to be consi
dered."
The pictures were taken in the north part of Eugene and in an
east to west strip of Springfield. An unofficial area was also
covered around the edges of the main sites
EWEB urges energy cutbacks
The state s unseasonably dry weather has
sparked the Eugene Water and Electric Board
(EWEB) to begin a full-scale energy and water con
servation program.
The program, which was announced at an EWEB
board meeting last week, calls for EWEB representa
tives to work individually with the utility's approxi
mately 5,000 commericial and industrial customers
Postmaster sets
protection week
'American consumers lost an estimated $514
million last year as a result of mail fraud and
misrepresentation-by-mail schemes,” according to
Eugene postmaster Ethan Newman.
In an effort to assist consumers, Postmaster
General Benjamin Bailar has designated this week
as the second annual Postal Consumer Protection
Week. The Postal Service investigates mail fraud
and false representation by mail through the efforts
of the Postal Inspection Service, the Consumer Pro
tection Office of the Postal Service Law Department,
the Service's Judicial Office and its Consumer Advo
cate.
"In conjunction with Consumer Protection
Week, we are re-emphasizing the Consumer Service
Card Program,” Postmaster Newman said.
to develop conservation programs, i ne unveiling or
EWEB’s conservation program came on the heels of
an announcement by the Bonneville Power Ad
ministration (BPA) that public and private utilities in
BPA s Northwest power network would be asked to
cut their energy consumption by 10 per cent.
According to Keith Parks, EWEB general man
ager, the commercial and industrial visitations will
involve five or six EWEB staff members and will take
several months to complete. He feels the visits will
help to show large power users additional ways they
can conserve energy.
According to Parks, EWEB officials will also ask its
45,000 residential customers to cut back on water
and energy use whenever possible. Parks says an
energy program developed during the 1973-74
energy shortage will be updated and will include a
Laundry list' of conservation measures customers
can practice to cut their water and energy use.
Parks said mandatory energy curtailments may be
necessary if the drought continues.
Lack of rainfall may also hamper the University's
power supply, according to Harold Babcock of the
University's Physical Plant. The University is one of
EWEB's major power users, but Babcock says in a
crunch" the University’s own fuel generation system
could produce enough electricity to satisify the
school's energy needs.
Babcock also reports, however, that significant
drops in the water level of the Willamette River could
force the University to shut down its generation sys
tem entirely.
EAST
WEST
PLAYERS
Music, Song, Dance,
and Theater
portraying the
experience of Asians
in America
Direct from Lot Angela*, th* company ha*
bean critically acclaimed tor It* originality,
boldnaa*. and creativity. Don't mlaa thl* oppor
tunity to aaa a unique performance.
8 p.m. 167 EMU
$2
Tickets at EMU Main Desk
00600:21
ACME BIJOU PRESENTS
LIFEBOAT
ALFRED HITCHCOCK
Bpm 180 PLC
$1 25 or Season Ticket
00608:21
HOMEFRIED TRUCKSTOP
BUCKMINSTER FULLER S
4th of JULY TALK
4 hours ol tape with breaks, 6-10 p m
DONATIONS
on 14th between Hilyaid and Alder
0061321
EMU Cultural Forum
Presents in Concert
JAZZ GREAT
YUSEF LATEEF
THE GENTLE GIANT
Wednesday. March 2. 1977
EMU Ballroom. 8pm
Tickets available at EMU Mam Desk and
Everybody s Records 00568 2
EUGENE OPERA! PRESENTS
CARMEN
PERFORMED IN ENGLISH
February 25. 26, 27
Tickets Meier & Frank. Mattox and Skeies
00490:25
CINEMA 7
ATRIUM BUILDING. SECOND FLOOR
torn and Olive, 687-0733
TONIGHT THRU FEBRUARY 22
1st Eugene Showing of Kurosawa's
Version of Dostoevsky's Classic
THE IDIOT
Starring Toshiro Mifune
Showtime 8 p m
609:22
PERSONAL
FREE TAX RETURN
ASSISTANCE
Help and advice in tilling out tax returns Presenta
tion BAP Accounting Fraternity 10 a m -1:30 p m
Monday thru Friday EMU Lobby 14224 2-28
VETERANS
The VA provides funds
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For more into cat I 666-3232
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SELF-STOR
INDIVIDUAL STORAGE UNIT RENTALS
5X10 10X10 and larger. 24 hour access Store it
yourself and save Call State Realty
1 u60Q.ttn
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95150_ 221
LOW COST AUTO INSURANCE
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Ask for Jim Pack
_13792MWF
RALPH DAWSON
TODAY! in the Forum Room at 11:30
The witty, eloquent and extremely informa
tive RALPH DAWSON will be speaking
onSTRATEGIES FOR SURVIVAL The
Ethnic Student in Higher Education (or)
Plantation Songs and Other Stories (or)
Memoirs ot a Runaway Slave 00621:21
LANE MEMORIAL BLOOD BANK
The Bloodmobile will be al Collage Grove today
from 2:30-5 30. Contact June Bird at 942-2820 tor
more inlormation
DONORS NEEDED
A Positive 4 Units: A Negative 1 Unit; O Positive 6
Units; O Negative 1 Unit; B Positive 1 Unit
Call 484-9111 tor an EtoPPmtment
JELL-O, happy 2ter! Finally, no more Chee-tos
and Coke It's Cold Duck all the way Here s to
Paris, wme, and??
2:21
Love. KSJ
UNIVERSITY DEMOCRATS WILL be meeting
Monday at 7 30 p m in EMU, Room to be
Posted' 00601 21
Have YOU
purchased
your 1977 Oregana?
This award-winning. 500-page history of the
University during 1976-77 is still available
at the low price of $9.
DON’T WAIT!
BUY YOURS NOW
March 1 the Oregana will sell for $11 Don’t
wait until next tall to reorder — there will not
be extra copies. Get your Oregana now.
Just stop by Room M-111. on the mezzanine
level o! the EMU. or look tor our table m tie
EMU lobby the week m February
See yourself — in
the Oregana.
00474:sb
YESTERDAY WAS MINDY SEACATS 19th! Give
her a birthday kiss1 Happy day 2 21
C. J. THANK YOU lor a year of sunshine and love
Looking toward to many mote ILY your non 2 21
HAPPY QUARTER-CENTURY BIRTHDAY
ROBERT (AND GEORGE) SCHERZER! a small
dona ton has been made in your name to the study
on agng in Amenca J 2:21
VON GROTO, sister ot the Frog Your cup runneth
over, butt may yours always be rated 10 Happy
Birthday! Compliments of #11 Gourmet
Restaurant 2
TWEEZE. TWEEZE and what do you have’ Move
and more of the pnckly unwanted hairs, right’ Get
smart! Phone 687-9181 Electrology by
Manan 00489 MWH
BOOGIE ON DOWN TO BIGGIES SUB CITY
Home ol the Super Biggie
7886 11th Street. Next 10 Mayflower Theatre
2:25
JOIN THE GREEK UFE. Sign up tor Soronty
Spnng Formal Rush (Apnl 27-May 3) at Panheltenic
Office. Suite 3. EMU 00615:25
MARTY LORCH—Let s hope your next 21 years
brxigs you better luck in handball Happy 21st 2:21
PI KAPPA ALPHA FRATERNITY presents the
First Annual Pike s Peek Road Rally This Fnday.
February 25 Regstraton starts at 7 p m First car
out at 7:30 p m Prizes awarded lor First, Second
and Third place 2:21
LEIF SEYMOUR. HAPPY BIRTHDAY to one per
vert from another 2:21
TO APARTMENT 5 DELI, it's OK if you re out of
Pjetiani, just make it a well hung sausage, heavy
on the Mayo (wrap it to go!) Your Patrons 2 21
RALPH DAWSON
TODAY! In the Forum Room at 11 30
The witty, eloquent and extremely informa
tive RALPH DAWSON will be speaking on
STRATEGIES FOR SURVIVAL: The Ethnic
Student m Higher Educsbon (or,°tantation
Songs and Other Stones (or) Memoirs of a
Runaway Slave 0062121