Oregon’s Largest Gas Utility Still Not Green — ProPublica

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ProPublica, a nonprofit newsroom dedicated to investigating power abuses, highlights NW Natural’s ongoing campaign related to renewable natural gas.

Reporting Highlights

  • Soothing Message: NW Natural’s “Less We Can” campaign promoted renewable natural gas with the slogan, “Change for the better. Without changing a thing.”
  • Failure to Deliver: After seven years, the company has not met its climate goals with alternative fuel.
  • Core Business Preserved: The company’s actions ensured minimal consequences while continuing significant fossil natural gas sales.

The Initiatives of NW Natural

Seven years ago, NW Natural, Oregon’s largest natural gas company, aimed to convince lawmakers and residents of a new green energy source. Renewable natural gas, derived from decomposing organic waste, was presented as an environmentally friendly replacement for fossil natural gas in pipelines.

Sending a lobbyist to advocate for renewable natural gas, NW Natural helped draft a law promoting its development and collaborated with the Oregon Department of Energy to inventory potential resources. The company also launched a $1 million advertising campaign targeting customers, touting their commitment to reducing carbon emissions with the slogan “Less We Can.”

These initiatives reduced the momentum of climate activists advocating for the transition from gas to electric in Oregon homes.

Current Status

Despite the campaign, NW Natural has not delivered on its clean-energy promises. The company has increased its retail gas customers and continues to provide similar amounts of fossil natural gas as before, while fighting legal battles to maintain its gas supply.

Internal industry documents procured by ProPublica reveal NW Natural’s strategy to maintain its fossil fuel business while portraying a green image. Former state Rep. Phil Barnhart criticized the company, claiming their narrative was “not possible” and aimed at preserving their business.

NW Natural expressed confidence in its renewable goals but cited obstacles from policy makers and climate advocates. The company defended its “Less We Can” campaign, stressing it provided valuable information to customers.

Market and Policy Efforts

Operating in a state increasingly demanding climate action, NW Natural, unlike many utilities, does not sell electricity. This puts the company at risk when homes switch to electric systems.

The utility’s approach mirrors that of other energy companies under public pressure: embrace environmental goals loudly, propose complex and unproven solutions, and maintain the status quo if solutions fall short. This has allowed NW Natural to avoid significant repercussions despite missing renewable targets.

Renewable Natural Gas Campaign

The company promoted the idea that renewable natural gas could transform the energy landscape without disrupting customer lifestyles. Advertisements from 2017 suggested that renewable natural gas was imminent and promised significant environmental benefits with minimal personal sacrifice.

Industry Strategies and Challenges

The Northwest Gas Association, including NW Natural, recognized the growing anti-fossil fuel sentiment. They agreed on climate action that wouldn’t penalize natural gas utilities. A strategic plan to align natural gas with a low-carbon economy was adopted.

NW Natural developed the “Less We Can” campaign to resonate emotionally with the public while presenting renewable natural gas as a viable solution.

Legislative Efforts and Opposition

In 2017, a bill to inventory Oregon’s potential for renewable natural gas passed easily. The resulting report indicated significant technical potential but limited practical production capacity, which NW Natural used to advocate for more expansive legislation in 2019. The new bill allowed for renewable natural gas investments recouped through customer charges and set voluntary production goals.

Despite these efforts, NW Natural’s real contribution to renewable natural gas in Oregon remains minimal. The company faced scrutiny for advocating misleading data about the potential of renewable natural gas and emphasizing selective results.

Recent Developments and Future

NW Natural sourced much of its renewable natural gas from out-of-state, especially from Nebraska, without documented climate benefits. Unresolved regulatory and policy challenges contributed to the company’s failure to meet its renewable gas targets for 2024, resulting in less than 1% of its supply being renewable natural gas.

The struggle for NW Natural illustrates the complexities and challenges in transitioning to renewable energy while maintaining business viability.

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