Oregon Public Broadcasting

Portland General Electric is having a tough week. It reported substantially lower second quarter earnings Monday, and as Kristian Foden-Vencil reports, the governor may not veto a new law that promises to increase the cost of producing renewable power.

PGE income fell to $24 million  for the quarter ending in June, compared to almost $40 million this time last year.

The company says demand from industrial sectors, like pulp and paper mills, is down -- and the market for the resulting excess power is weak.

The state also passed a bill significantly cutting the tax advantages of building more wind and solar power generators.

Company spokesman, Steve Corson, says regardless of what the governor does, PGE will continue with its goal of producing 25 percent of it power with renewables.

Steve Corson: “We are going to be adding additional renewables to meet that standard by 2025.”

Governor Ted Kulongoski has until midnight Tuesday to decide on a veto.