NW Natural Faced Scrutiny Over Biomethane Investments
A new report claims ratepayer-funded projects missed emission targets, complicating the utility's future strategy.
Updated on Sept. 23, 2026 in Utilities
Live Poll
Should local utility companies be allowed to invest ratepayer funds into experimental biomethane energy projects?
A report released by the Sierra Club and Breach Collective asserts that NW Natural utilized Senate Bill 98 to fund out-of-state biomethane projects that failed to deliver intended greenhouse gas emission reductions. The utility reportedly missed its 5% biomethane target at the end of 2024.
Why it matters
The findings challenge the efficacy of using ratepayer-funded biomethane investments to meet regulatory climate standards. Gas utilities have historically supported these initiatives to avoid more stringent emissions requirements that could reduce their long-term customer base.
NW Natural has deployed more than $60 million in ratepayer funds toward biomethane projects, including a $43 million investment in a facility in East Wenatchee, Washington. The utility failed to reach its 5% biomethane procurement target scheduled for the end of 2024.
The players
NW Natural
An Oregon-based natural gas utility that manages residential and commercial energy distribution.
Sierra Club
A national environmental organization focused on climate policy and renewable energy advocacy.
Breach Collective
An advocacy group that monitors utility business practices and corporate environmental claims.
The details
Senate Bill 98 enables gas utilities to finance anaerobic digesters located at concentrated animal feeding operations. Despite these investments, projects like a biomethane site in Lexington, Nebraska, closed after a few years, and a facility in East Wenatchee was abandoned in 2025. Critics are now calling for the repeal of the legislation and an end to ratepayer-funded involvement in these ventures.
Timeline
End of 2024: Deadline for a 5% biomethane target.
2025: NW Natural abandoned an East Wenatchee facility.
September 23, 2026: Release of the Sierra Club and Breach Collective report.
2029: Target year for 10% biomethane supply.
2050: Target year for 30% biomethane supply.
Market Landscape
The controversy surrounding Senate Bill 98 illustrates the broader tension utilities face when attempting to integrate renewable gas to satisfy climate mandates. It follows a pattern of heightened regulatory and public scrutiny over the cost-effectiveness of alternative energy investments.
Business operators should monitor upcoming legislative sessions for potential repeals or modifications to Senate Bill 98 that could alter utility rate structures. Organizations relying on renewable gas credits should re-evaluate their supply security given the reported failure to meet mandated targets.
The takeaway
The report suggests that ratepayer-funded green initiatives may face significant operational hurdles and project closures. Businesses should track whether these missed targets trigger new rate adjustments or shifts in state-level utility compliance mandates.
Further reading
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Live Poll
Should local utility companies be allowed to invest ratepayer funds into experimental biomethane energy projects?
