Report Criticized NW Natural Biomethane Investments
A new report claims utility ratepayer funds failed to meet emissions targets for out-of-state projects.
Updated on Sept. 23, 2026 in Utilities
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Should local utility companies be allowed to invest ratepayer funds into experimental biomethane energy projects?
A report from the Sierra Club and Breach Collective alleges that NW Natural used ratepayer dollars on out-of-state biomethane projects that failed to reduce greenhouse gas emissions. The analysis argues that the utility has fallen short of its state-mandated targets.
Why it matters
The findings challenge the efficacy of Senate Bill 98, which allowed gas utilities to invest in biomethane as a strategy to avoid stricter emissions requirements. Critics suggest these investments were designed to maintain the utility customer base rather than improve environmental outcomes.
NW Natural spent over $60 million in ratepayer funds on biomethane projects, including $43 million for a facility in East Wenatchee, Washington. The utility missed its 5% biomethane target set for the end of 2024.
The players
NW Natural
This natural gas utility provides services to customers throughout Oregon.
Sierra Club
This national environmental organization advocates for policies that transition energy systems toward renewable sources.
Breach Collective
This organization researches and challenges the influence of fossil fuel companies on public policy and utility regulations.
The details
The report highlights failures such as the closure of a project in Lexington, Nebraska, and the abandonment of the East Wenatchee facility in 2025. Projections indicate that the utility is unlikely to reach its 10% biomethane supply target by 2029 or the 30% goal for 2050.
Timeline
The Sierra Club and Breach Collective report was released on September 23, 2026.
NW Natural failed to reach a 5% biomethane target by the end of 2024.
An East Wenatchee facility project was abandoned by NW Natural in 2025.
The utility faces target years for biomethane supply in 2029 and 2050.
Market Landscape
This report highlights a broader conflict between gas utilities and environmental advocates regarding the role of biomethane in decarbonization. It signals a shift in public scrutiny toward utility-funded projects sanctioned under Senate Bill 98.
Customers of NW Natural may be affected by the long-term cost recovery of these failed projects through their monthly utility bills. The report's call for legislative repeal could eventually influence future rate-setting processes and utility energy strategies.
The takeaway
The controversy underscores the financial risks ratepayers face when utilities invest in unproven or failing alternative energy infrastructure. Residents should remain aware of how state policies like Senate Bill 98 influence their utility bills and corporate energy investments.
Further reading
For more on local infrastructure developments, read the latest updates in Utilities.
Source note: This article includes information reported by CleanTechnica.
Live Poll
Should local utility companies be allowed to invest ratepayer funds into experimental biomethane energy projects?
