Court Rejects PacifiCorp’s Bid to Overturn PUC Finding, the Utility's Failing to Comply with Emissions Reduction Law

MARION COUNTY, Ore. - Today, the Circuit Court for Marion County dismissed PacifiCorp's appealof the Oregon Public Utility Commission's (PUC) determination that the utility failed to demonstrate "continual progress" toward meeting the emissions-reduction mandates of Oregon's clean energy bill, HB 2021. The law requires electric utilities to reduce greenhouse gas emissions 80% by 2030, 90% by 2035, and 100% by 2040.

PacifiCorp had argued in court that it could not be held accountable for failing to meet the standard because, in its view, the Commission had not clearly defined what "continual progress" required. The Court rejected that claim and sided with the PUC and environmental, clean energy, and consumer advocates-including Sierra Club, Green Energy Institute at Lewis & Clark Law School, Oregon Citizens' Utility Board, and Renewable Northwest-affirming that under any reasonable interpretation of the statute, PacifiCorp's plan plainly failed to comply.

Advocates stressed throughout the case that PacifiCorp's 2023 Clean Energy Plan could not show continual progress because the company:

1. Never forecasted meeting any of HB 2021's emission reduction targets,
2. Presented a plan that included significant backsliding compared to its prior clean-energy plans, and
3. Offered no coherent path for returning to compliance

Advocates emphasized that the lawsuit was a transparent effort to delay implementation of HB 2021 and avoid any consequences of failing to comply with the state's landmark clean energy law. With the appeal now dismissed, the PUC's decision stands, and PacifiCorp must take immediate steps to align its resource planning with state law-most critically by procuring affordable clean energy resources before federal tax incentives expire this year.

"Sierra Club and our partners intervened in this case to defend Oregon's clean energy law and to ensure that customers are not stuck paying more for a dirtier, less reliable energy system," said Rose Monahan, Senior Attorney, Sierra Club. "The court's decision confirms what the record made clear: PacifiCorp has been moving backward, not forward, on reducing emissions and planning for the clean energy transition required by Oregon law."

"This is an important victory for customers. The court reaffirmed that the PUC regulates monopoly utilities and has broad authority to hold them accountable," said Claire Valentine-Fossum, General Counsel, Oregon Citizens' Utility Board.

"This ruling underscores that Oregon's energy laws are not optional and that utilities must plan responsibly for a cleaner, more resilient grid-and when they fail to do so, regulators will step in to protect customers and the public interest," said Alex Houston, Staff Attorney, Green Energy Institute at Lewis & Clark Law School.

"The Court's decision upheld the PUC's broad authority to implement and ensure the sanctity of Oregon's clean energy mandates and made clear that Oregon utilities must bring forth actionable plans to comply with the law, or be held accountable. This is a win for clean energy, regulation's necessary role, and all Oregonians," said Mike Goetz, Regulatory Affairs Director, Renewable Northwest.

PacifiCorp serves more than 600,000 Oregon customers and remains the state's largest emitter of power-sector greenhouse gases.

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.