Energy Trust of Oregon is a nonprofit organization that provides services and financial incentives to support energy efficiency and renewable energy adoption in Oregon and Washington. Servicing over 2 million customers, the organization operates in collaboration with local utilities, including Portland General Electric (PGE), Pacific Power, NW Natural, Cascade Natural Gas and Avista.

In 1999, as part of electric industry deregulation legislation through Senate Bill 1149, the state required Oregon’s two largest electric utilities—PGE and Pacific Power—to collect a 3% public purpose charge from their customers to support energy conservation in K-12 schools, low-income housing energy assistance, and energy efficiency and renewable energy programs for residential and business customers. [1]

The Oregon Public Utility Commission (OPUC) was authorized to direct how the funds for the energy efficiency and renewable energy programs would be spent, including through a nongovernmental entity.

Energy Trust of Oregon was created in 2001 as an independent, public purpose nonprofit to invest in cost-effective energy efficiency and helping to pay the above-market costs of renewable energy resources. The organization began operating and providing energy efficiency and renewable energy programs to customers in 2002.  

Subsequently, natural gas companies contracted with Energy Trust to provide gas efficiency services to their customers. These arrangements stemmed from settlement agreements reached in OPUC proceedings.

In 2007, Oregon’s Renewable Energy Act (SB 838) allowed PGE and Pacific Power to capture additional, cost-effective electric efficiency above what could be obtained through the 3% charge. SB 838 also extended the sunset date on the original 3% public purpose charge from 2012 to 2026 and capped the size of renewable energy projects Energy Trust could support to no more than 20 megawatts. [2]

In 2021, the Oregon Legislature passed HB 3141, the public purpose charge modernization law that extends and expands Energy Trust’s purview. The law reaffirmed the value of the public purpose charge while modernizing it to fit the needs of utility customers and today’s energy system. [3]

First, the law transitions energy-efficiency funding into ratemaking processes, effectively removing the sunset on efficiency funding. It expands what qualifies for renewable energy funding to include projects that improve reliability and resiliency of the electric grid. And it sets a requirement that at least 25% of renewable energy revenues be used for activities, resources and technologies that serve low- and moderate-income customers, including for technologies that do not have above-market costs. This will enable Energy Trust to develop more offers and dedicate more funds to offers that meet the needs of customers with low and moderate incomes.

Last, HB 3141 includes a requirement for the OPUC to set equity metrics for funds invested by Energy Trust.

As a result of state legislation, tariffs and other requirements, Energy Trust is funded by customers of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas and Avista. Customers of these five utilities pay a small percentage of their utility bills to support a variety of energy-efficiency and renewable energy services and programs in Oregon and Southwest Washington. This charge is referred to as a system benefit charge or public purpose charge on customer bills depending on the utility.  

Energy Trust has three major types of funding.

Building block 1, Funding for cost-effective energy efficiency: Energy Trust receives funding to acquire cost-effective energy efficiency resources. This block of funding comes from utility tariffs set in accordance with public utility commission standard ratemaking processes. For Oregon customers those tariffs are approved by the Oregon Public Utility Commission; for Washington customers they are approved by the Washington Utilities and Transportation Commission. ​For all five utilities, funding amounts are set yearly through our annual budgeting and action planning process. Those funding amounts are based on the cost-effective energy efficiency resource potential identified in each utility’s Integrated Resource Plan.

Block 2, Funding for small-scale renewable energy systems and grid-connected technologies: Funding for small-scale renewable energy systems and grid-connected technologies comes from a portion of Oregon’s public purpose charge, which was revised in 2022 following passage of HB 3141. This dedicated funding is used to reduce the above-market costs of small-scale renewable generation from rooftop solar, hydropower, biopower and some instances of wind and geothermal. Energy Trust invests in distribution system-connected technologies that deliver reliability and resiliency to the electric grid, such as battery storage and smart inverters, in addition to generation. It is required to invest at least 25% of our renewable energy revenues in activities, resources and technologies that serve low- and moderate-income customers, including technologies that do not have above-market costs. 

Block 3, Funding through contracts: Energy Trust contracts with select entities to deliver programs that align with our mission and support our core energy savings and generation work. This includes a subcontract to support delivery of Oregon’s Community Solar Program, a PGE pilot program that offers incentives for customers to add battery storage to a solar system; and pilots with utilities to study targeted load management.

Energy Trust offers cash incentives for a variety of energy-efficiency improvements and renewable energy systems for homes, businesses, industrial facilities, agricultural operations, and public and nonprofit buildings. Other assistance provided includes information, services and technical assistance to help customers identify and prioritize projects that fit their budget and goals. [5]

1. ^  Oregon Public Utility Commission. "Restructuring Law SB1149". Oregon.gov. State of Oregon. Retrieved 5 January 2012.
2. ^ Oregon Legislative Assembly. "Senate Bill 838" (PDF). Oregon Renewable Energy Act. State of Oregon. Retrieved 5 January 2012.
3. ^ Oregon Legislative Assembly. (2021). House Bill 3141 (2021 Regular Session). https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB3141
4. ^ Energy Trust of Oregon. "Who We Are". energytrust.org. Archived from the original on 24 November 2011. Retrieved 5 January 2012.
5. ^ Database of State Incentives for Renewables and Efficiency. "Energy Trust of Oregon". DSIRE. US Department of Energy. Archived from the original on 2 November 2011. Retrieved 5 January 2012.