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Investor Presentaiton

2-33-23-2 STA ********* OREGON THE UNION ***** 1859 ENERGY LPRO: LEGISLATIVE POLICY AND RESEARCH OFFICE BACKGROUND BRIEF The U.S. Department of Energy's Energy Information Administration (EIA) tracks energy use in four broad categories: electricity, petroleum, natural gas, and coal across the residential commercial, industrial, and transportation sectors. Oregon ranked 39th in the nation, on a per capita basis, for total energy consumption in 2016 (the most recent year for which data is available). Energy use in Oregon is distributed between transportation (30.4 percent), residential (24.3 percent), industrial (26.1 percent), and commercial (19.2 percent). Energy is a significant economic driver in both Oregon and the United States. The EIA reports that Oregon spent $11.79 billion on energy in 2016 (most recent data).1 The Majority of the energy used by Oregonians comes from hydroelectric sources. Energy planning efforts in Oregon focus first on conservation and increased efficiency to meet extra consumer demand, and then on increased generation from local renewable and traditional sources. ELECTRICITY TABLE OF CONTENTS ELECTRICITY ELECTRICITY GENERATION AND CONSUMPTION PETROLEUM NATURAL GAS ENERGY CONSERVATION AND EFFICIENCY In Oregon, electricity is sold through two types of utilities: investor-owned utilities (IOUs) and consumer-owned utilities (COUs). Three IOUS operate in Oregon and are private companies regulated by the Oregon Public Utility Commission (PUC): Portland General Electric (PGE), PacifiCorp (formerly Pacific Power), and Idaho Power Company. The PUC regulates the retail rates charged by IOUS to ensure that all customers are charged fair and reasonable rates, while the utility earns a rate of return on its investments. The IOUS generate their own power, contract for power from third-party producers, or purchase power from energy markets. COUS are not regulated by the PUC, but are instead self-regulating, not-for-profit public entities. In addition to IOUS and COUS, there are electricity service suppliers (ESSs). An ESS is a third-party entity that sells electricity services directly to more than one nonresidential retail customer pursuant to a direct access tariff as authorized by Senate Bill 1149 (1999). The PUC must certify ESSs before they may enter into a direct access 1 U.S. Department of Energy, Energy Information Administration (EIA), State Energy Expenditure Estimates, 2016 August 8, 2019 Page 1
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