This time NW 狈补迟耻谤补濒鈥檚 own customers have filed a class action lawsuit claiming the company misled them about how its carbon reduction program works and that it鈥檚 using funds from that program to promote and generate more carbon emissions.
The complaint filed on Wednesday says the company鈥檚 Smart Energy program is making false promises about reducing customers鈥� carbon footprint. The complaint also says the program represents a breach of contract under Oregon law because it violates the state鈥檚 prohibition on unfair and deceptive marketing claims.
A spokesperson from NW Natural said Thursday that the company has yet to receive the complaint but 鈥渢he company takes these matters seriously and intends to vigorously defend itself should this matter come to court.鈥�
NW 狈补迟耻谤补濒鈥檚, which the company describes as an affordable and simple program to sign up for, is designed to help customers offset their carbon emissions. The program states it does so through a number of, like purchasing carbon credits or increasing renewable natural gas projects.
To sign up, customers pay a monthly fee that ranges from 15 cents to $10 a month, depending on the tier chosen or whether it is a residential or business account.
The company, which serves more than 2.5 million residents in the Pacific Northwest, says it has more than 90,000 customers participating in the program 鈥渨ho are addressing the carbon emissions from their natural gas use鈥� according to its website.
But the claim said customers 鈥減aid for carbon offsets guaranteed to mitigate specific quantities of carbon emissions from their natural gas use, Northwest Natural Gas failed to deliver such offsets.鈥�
鈥淲e were very quick to find that anybody you asked if you were part of this program, 鈥榳hat did you think you were buying?鈥� The answer would be, 鈥業 thought I was offsetting my emissions. I thought I was helping. I thought I was doing the right thing,鈥欌�� David Sugerman, the trial lawyer part of the class action complaint said 鈥淎nd, it鈥檚 kind of a case of broken promises and misrepresentations.鈥�
These claims come as the company was recently added as a defendant to companies over the 2021 heat dome. It may be the first time a gas utility has been added to a climate accountability lawsuit. The utility has been facing growing calls to end gas use in Oregon from environmental groups.
But NW Natural has said renewable natural gas is central to to meet Oregon鈥檚 climate goals.
Renewable natural gas, or RNG, is a type of biogas made from decomposing organic matter. RNG is often produced by capturing byproducts from landfills, livestock operations, like digesters, or wastewater treatment. It鈥檚 mostly made up of methane 鈥� a greenhouse gas that is.
But according to Sugerman, factory farms increase emissions rather than reduce them.
Despite NW 狈补迟耻谤补濒鈥檚 plan to acquire more RNG, it鈥檚 for two years in a row and has so far procured less than one percent to offset its emissions.
The legal complaint claims, 鈥淚n a recent interview, a Company executive stated there is no universal standard to measure how much a renewable natural gas project actually helps the climate, and admitted that claimed emissions reductions vary based on the accounting method used.鈥�
The company has also fought against climate action programs that would reduce the use of gas over time. In 2022, the company sued the Oregon Department of Environmental Quality鈥檚 Climate Protection Program, which would have created limits and an overall move away from fossil fuel usage. That program is currently undergoing a with the hope of restarting the program in 2025.
鈥淎s you dig into this, you learn that for a lot of reasons these representations and these promises aren鈥檛 true,鈥� Sugerman said. 鈥淲hat we find is that these offsets are tricky and complicated. Most of the offsets that they buy are targeted at factory farm methane digesters. These are very big industrial agriculture, industrial feeding, animal production and they鈥檙e taking methane and purporting to digest it and create what they call renewable natural gas.鈥�
The complaint also alleges the money collected from the program is used to market the benefits of renewable natural gas, with funds going to things like and fliers sent out to customers.
鈥淚t鈥檚 kind of one of those classic oxymorons, right, because there鈥檚 nothing, nothing renewable about it,鈥� Sugerman said.
According to NW 狈补迟耻谤补濒鈥檚 website, about 78% of customers鈥� payments into the program is 鈥渦sed to purchase a mix of carbon offsets and renewable thermal certificates from environmental projects that reduce, or prevent the release of, greenhouse gasses. The product mix is made up of at least 96% carbon offsets and up to 4% renewable thermal certificates.鈥�
The remainder of the payment goes toward 鈥渉elping educate customers on how to reduce greenhouse gas emissions and administering the program. NW Natural does not profit from the Smart Energy program.鈥�
鈥淚 signed up for Smart Energy because I鈥檓 concerned about the climate crisis. I was willing to pay a bit more to make a green choice,鈥� Nicolas Blumm, one of the plaintiffs in the lawsuit, said in a statement. 鈥淗ad I known what the program really was, I would never have signed up.鈥�
Sugerman said the program is a 鈥渃lassic greenwashing鈥� case.
鈥淭he seller makes representations about something being environmentally friendly or healthy or good, and it is not,鈥� he said. 鈥淚t drives sales, they can charge premium prices and consumers wind up spending money on things that they鈥檙e not getting.鈥�
The plaintiffs are asking for a complete refund of payments into the program and for NW Natural to either make the program work as advertised or shut it down.
This story comes from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.
Copyright 2024 Oregon Public Broadcasting
