Utility Rate Increases Are Here

The following is a news release from the Oregon Public Utility Commission:

Electric Rates to Rise in 2011 for PacifiCorp Customers

December 17, 2010 (2010 - 029) (UE 217)

Contacts: Ray Baum, Chairman, 503 378-6611; Susan Ackerman, Commissioner, 503 378-6611
John Savage, Commissioner, 503 378-6611; Bob Valdez, Public Affairs Specialist, 503 378-8962

Salem, OR. The Oregon Public Utility Commission issued one of two pending rate decisions today that will increase rates for Oregon customers of PacifiCorp next year.

The general rate case decision issued will increase rates by 8.4 percent to cover all new expenses for operating the utility. The Commission is expected to approve the second case on Dec. 28, 2010, that deals with power costs. The power costs will likely add 6.1 percent more to the increase, bringing the total increase to 14.5 percent. PacifiCorp had requested a 20 percent increase.

“Commission staff and customer groups worked very hard to trim expenses where they could. I also know that the impact of this decision will be difficult for many households and businesses to absorb given our difficult economic times,” Commission Chairman Ray Baum said. “I hope we can avoid the situation in the future where large capital projects and power costs hit customers in the same year. However, these are resources that will serve customers for decades.”

The monthly bill of a typical residential customer using 900 kilowatt hours of energy a month will increase by $9.38 from $88.21 to $97.59 or 11.5 percent. ($5.38 is due to the general rate case and $4.00 is for power costs. The increase includes the monthly service charge. The amount will vary for customers using above or below 900 kilowatt hours.)

Energy rates for industrial customers will rise by 17 percent and large commercial customers by 17.6 percent.

The new rates take effect Jan. 1, 2011.

General Rate Case Summary
In the general rate case, PacifiCorp requested $130.9 million, a 13.1 percent increase. The Commission reduced it to $84.6 million a year, or approximately 8.4 percent overall. Residential rates will go up by approximately 7.9 percent.

PacifiCorp has invested $470 million in the Oregon-allocated portion of its system since its 2010 general rate case (UE 210). This includes costs for constructing transmission lines, adding wind resources, installing pollution control measures, and paying hydroelectric relicensing expenses.

The Commission reduced PacifiCorp’s original requested increase for a number of major expenses, including:

* Administrative and General Costs $2 million
* Populus to Terminal Transmission line $500,000
* Operations and Maintenance $20.9 million
* Capital Structure and Cost of Debt $20.3 million


The Commission held the line on PacifiCorp’s Rate of Return (ROR), which remained unchanged at 8.08 percent and its authorized Return on Equity (ROE) at 10.125 percent. PacifiCorp had asked to raise its authorized ROR to 8.38% and its ROE to 10.60 percent.

Power Costs Summary
PacifiCorp has asked to collect $60.9 million for power costs, a 6.1 percent increase. The utility is facing higher power costs because of expiring long-term, low-priced hydropower contracts, an expired fixed-price gas contract, and expenses for integrating wind-generated energy.

The new rates take effect Jan. 1, 2011. END OF NEWS RELEASE

If you look at some of earlier posts, you'll see the threat of this rate increase has been coming. A homeowner or business can do many things to help offset rate increases but the most effective and economical way to see dramatic results in cutting electrical utility costs is to install a solar array. Some of my clients are seeing close to fifty percent savings in their electrical utility bill because of a solar array I installed on their roof. With the tax incentives, cash rebates, and now, the coming utility rate increases, now is the time to install solar. Call me at 541-490-9771 for a free consultation. Ask for Rich.

A Fundamental Design Concept for Solar

Of all the factors to consider when designing a solar array, one that is the most important is the record low temperature for the area where the array is being installed at. Interestingly enough, a solar module's operating characteristics is directly affected by the outside air temperature. The colder it is outside, the more voltage is produced and conversely, the hotter it is outside, the more voltage output begins to degrade. As a matter of fundamental design criteria, the record low temperature is determined first to ensure that the inverter is capable of handling the increased voltages at low temperatures. Applying a solar array voltage in excess of the inverter rating will damage the inverter which is why I base the sizing of the array in conjunction with the inverter on the record low temperature.

Fortunately, Oregon is considered an ideal climate for electric solar arrays due to the moderate to cool climate we enjoy. Also, adequately spacing the solar modules off the roof provides air flow between the array and the roof which aides in cooling the array as well. These are just a few of the design factors I incorporate into all my array installations.

New Financing Available

I'm excited to announce that I am now offering Same-As-Cash financing, also known as a bridge loan, to qualified homeowners for solar electric installations! Even with the tax credits and cash rebates, there is still the upfront cost of installing solar. With same-as-cash financing for up to eighteen months, you spread out the initial upfront costs and pay no interest or no mandatory payments. Of course within that time frame, you'll receive your cash rebate which you could then apply directly to your bridge loan leaving a small enough balance to easily pay off within the eighteen months. Again, with the tax credits, cash rebates, and now the same-as cash-financing available exclusively through Ridgeline Electric and Design, there truly is no better time to go solar! No other solar installer in the Columbia River Gorge makes it easier. Give me call at 541-490-9771 for more details!

What Makes a Good Solar Profile?

Some people aren't sure if they have the right "solar profile" to qualify for the rebates and tax credits in the State of Oregon. In many cases, a detailed on-site analysis by someone like myself will determine whether or not you meet the criteria.

A quick way to perform a self analysis is to check the following characteristics of the roof area you're considering. First, you need to have adequate roof area to accommodate a solar array. As an example, a 2300 watt array would need ten solar panels occupying approximately 150 square feet. Second, you want to have a South or mostly facing South roof area. Third, there shouldn't be many trees around that cast shading on the roof area where the solar array would be installed. Obviously, trees closer to the roof area will have more of an impact in terms of shading than trees that are farther away. Fourth, the pitch of the roof has an impact on the array as well and various depending on your location. For Northern Oregon 34 degrees is optimum. Lastly, You must be either a PGE or PPL client to access the cash rebates and, of course, the system must be installed by an Energy Trust of Oregon Trade Ally as well as a Tax Credit Certified Technician and a licensed Electrical Contractor such as myself.

Fell free to give me a call if you would like to discuss your potential for solar at 541-490-9771!

A Word About Buying Local

One of the things that really struck me when I attended and displayed my business at the Energy Trust Better Living show in Portland was the prevalence of foreign made solar products. Most of the other solar vendors were promoting dirt cheap installations without informing their prospects that the solar equipment proposed was from china, Taiwan, or India.

When I decided to offer solar installations for my clients, I spent a great deal of time researching all the different manufacturers of PV modules and inverters and I made a decision to install SolarWorld panels and PVPowered inverters. This decision was based on two very important points: First, each of these manufacturers has demonstrated an outstanding level of quality and craftsmanship in their products. Remember, we're talking about equipment that I expect to be producing power for upwards of 40 to 50 years under all types of conditions. Second, both of these manufactures produce their products not only here in the US, but right here in the State of Oregon. It's more important to me to purchase locally than go on the cheap and purchase from overseas.

When you're considering a solar installation, ask where the products come from and take the time to research the product. A solar installation is a significant investment in your home or business and peace of mind in the longevity of the system will go a long way!

Great Show!

Wow! I would like to thank all of those who came to see me at the Energy Trust Better Living Home Garden & Lifestyle Show at the Portland Expo Center! It was a great show that provided a ton of information about green living and renewable energy solutions. I'm looking forward to following up with all of my new contacts and providing them with common sense renewable energy solutions.

Pacific Power Looks to Increase Utility Rates

The Oregonian reported today that Pacific Power is seeking a 20% increase in electricity rates to take effect in January of 2011. An typical residential customer consuming 900 kilowatts of electricity would see their monthly electric bill increase from $80.96 to $96.78 in 2011. Again, as I posted in my last blog submission, a solar electric array installed to take advantage of an unshaded southern sky is a primary solution to offset the cost of energy. Between the tax credits and rebates which cover almost 70-80% of installation costs and the persistent threat of increasing utility rates, now is the time to take advantage of the solar incentives!

PGE Looks to Increase Utility Rates

On Tuesday, February 16th, Portland General Electric (PGE) asked utility regulators for a rate increase of 7.4%. For an average residential customer consuming 900kw/hr, this translates into a monthly utility bill of $100.00. A solar electric array installed to take advantage of an unshaded southern sky is a primary solution to offset the cost of energy. Between the tax credits and rebates which cover almost 70-80% of installation costs and the persistent threat of increasing utility rates, now is the time to take advantage of the solar incentives!

Renewable Energy Vendor Show!

Stop by and see my product line and get exclusive information at booth #747 at the Energy Trust Better Living Home Garden & Lifestyle Show at the Portland Expo Center March 26-28! I'll be showcasing the solar PV modules I install as well as highly energy efficient lighting and controls and renewable energy information and brochures! Check it out at www.betterlivingshow.org/

Energy Efficient Electrical Installations

A great deal can be incorporated into a home or business to capitalize on energy efficient building techniques. As for the electrical portion, a lot can be included in the design that extends to more than just adding compact fluorescent bulbs. From dimmers, to actual lighting types, Energy Star compliant appliances, and yes, actual wiring methods, a competent electrical contractor can accomplish a great deal in energy savings on behalf of his client. Of course, installing a solar array is a common sense move; especially with the tax credits and rebates that are currently available. Give me a shout to learn how I can incorporate energy efficient electrical technologies into your next project!

Get ready for Spring!

Spring 2010 is getting close and now is the time to take advantage of great tax credits and rebates for solar electric installations! With incredible industry savings on modules and inverters, Ridgeline can design and install your solar array at costs far lower than any solar installer in the area. Ridgeline has secured lucrative pricing with its vendors on the highest quality modules and inverters available. Give me a call at 541-490-9771 to learn more!