1. PGE Renewable Power The Costs of Change

2. 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

3. 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 1 st in the nation for residential “green” power sales

4. 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

5. 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

6. 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

7. 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

8. 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

9. Biomass 3% Source: Oregon Office of Energy, 2002 data. Renewable power vs. routine power Hydro 43% Nuclear 3% Natural Gas 9% Coal 42% Wind & Geothermal >4% Oregon Electricity Mix Hydro

10. 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

11. 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

12. 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

13. 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

14. Investing in the Future The costs are high and may be getting higher but the returns are real Thanks!