NW Natural Accused of Misusing Ratepayer Funds for Biomethane Projects
What happened
A report by the Sierra Club and Breach Collective found that NW Natural invested over $60 million in out-of-state biomethane projects using ratepayer funds. These projects, enabled by Senate Bill 98, have failed to meaningfully reduce greenhouse gas emissions or gas demand. The report notes that the law allows gas utilities to invest in biomethane even if the fuel is significantly more expensive than methane gas.
From cleantechnica.com
Why it matters
The findings suggest that NW Natural may have used the legislation it authored and supported to avoid emissions reduction requirements that would have reduced its gas customer base. The report claims these investments contributed to localized air and water pollution and supported pollution-intensive industrial animal agriculture.
From cleantechnica.com
Who's involved
- NW NaturalUtility that invested ratepayer funds in biomethane projects under Senate Bill 98.
- Sierra ClubEnvironmental nonprofit that released the report detailing the fund misuse.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Fifth Third BancorpSpeculative
Increased credit or investment risk might affect Fifth Third Bancorp's holdings in NW Natural due to the misuse of ratepayer funds.
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The entities involved
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NW Natural
American publicly-traded utility headquartered in Portland, Oregon, United States
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Sierra Club
environmental nonprofit membership association based in the United States