EnergyBiz - November/December 2007 - (Page 28)

The board innovation delivers returns MEETING THE CH A LLENGE BY M. LEE PELTON that settled the West. Portland General Electric is proud to have developed the nation’s first long-distance electric transmission line in 1889. It was this spirit of innovation that moved me to accept the invitation to join the utility’s board of directors, newly formed in 2005 after PGE separated from Enron and became an independent, publicly traded company. In accepting a board position, I was committed to reflecting the values of PGE’s customers, while still delivering a good return on our shareholders’ investments. I have learned that despite the pressures facing our industry in the 21st century, we have many opportunities that meet the needs of both customers and shareholders. Oregon is probably best known for its innovative approach to Oregonians embrace the pioneer spirit environmental protection. for the state’s largest electric utility, this commitment translates to a customer base that has high expectations for environmental protection. In its most recent planning process, PGE leadership conducted interviews, surveys and focus groups, hosted several day-long public workshops, and participated in regional forums to listen to what its customers have to say. This research showed that while customers want reliable, affordable electricity, they also prefer energy supply sources that are sustainable and have a low impact on the environment. Renewable resources and energy efficiency initiatives are high on their list, and the company’s latest resource plan reflects these values. In reviewing national statistics, I find Oregon customers are not that different from those in the South, North and Midwest. The majority of customers want utilities to meet growing demand in an increasingly sustainable way. To make this happen, we must find innovative ways that encourage responsible environmental practices while providing utilities a return on investment. One solution that can meet the needs of customers, shareholders and the environment is increased energy efficiency. Like many utilities, PGE is exploring regulatory policy that removes financial disincentives for pursuing greater efficiency. PGE also has asked state regulators to allow the utility to recover the cost of increased resources dedicated to energy efficiency. PGE also is seeking approval to recover the cost of installing automatic meters in customers’ homes and businesses that will help the utility serve customers more efficiently and cost effectively while helping customers better manage their energy use. These advanced meters are also expected to support the future development of We need leaders to become pioneers in seeking solutions that can help us meet the challenges of our nation’s energy future. demand response and direct load control programs. More real-time information is needed to encourage customers to use electricity at non-peak times, reduce use during periods of high demand, and generate their own electricity through passive solar and other systems. Yet despite everyone’s best efforts to use energy more efficiently, we know we will need more energy in the future. PGE is adding both traditional and renewable generating resources to meet growing demand. In June, PGE opened a new 400-megawatt natural-gas fired plant that is among the most efficient of its type in the nation. By December, Phase I of PGE’s new wind farm will be online, which ultimately will power up to 100,000 homes. These are M. Lee Pelton PhOTO cOurTesy WiLL aMeTTe universiT y 28 E n E rgyB i z November/December 2007

Table of Contents Feed for the Digital Edition of EnergyBiz - November/December 2007

EnergyBiz - November/December 2007 Contents Continental Grid Vision Needed Readers’ Views and Opinions Next for National Grid Clearing the Air The Need for Nuclear Energy Trade Status Report The Innovators California On The Leading Edge FERC Sparks Change Getting Coal Right Leadership in Times of Turmoil Innovation Delivers Return A Tale of Two IPOs LNGs Bright Prospects Generation Techologies The Age of Superconductors Leaders with Vision Get Ready for Plug-in Hybrids Betting on Batteries Cost of Decarbonizing Nuclear Helmsman – A chat with Dale Klein, Chairman of the U.S. Nuclear Regulatory Commission Global Energy Snapshot; Low-Income Energy Help; IT Spending Robust; The Greening of State Regulators; Generating Support Simplifying Offshore Wind Regs Chasing Construction Costs Energy Agency Sets New Course Deregulation Means Higher Rates Go-To Staffer Nightmare in Manhatten

EnergyBiz - November/December 2007

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