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Oregonians Brace for Potential Electric Bill Surge with Proposed 7.4% Rate Increase by PGE

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Published on March 08, 2024
Oregonians Brace for Potential Electric Bill Surge with Proposed 7.4% Rate Increase by PGESource: Facebook/Oregon Public Utility Commission

Electric bills are shocking Oregon residents, with Portland General Electric (PGE) proposing a 7.4% rate increase for the year 2025, after already implementing a 17% hike in 2024. This potential increase follows a significant 18% jump customers experienced on their first bill of 2024, marking a possible 25% surge in two years, as reported by KTVL. PGE defends the move, stating the additional funds are necessary for implementing new battery storage, upgrading infrastructure and covering operating costs, according to information filed with the Oregon Public Utility Commission.

Anxious due to receiving their unexpectedly high bills, PGE customers are not alone, with Pacific Power and Idaho Power also seeking price increases. Pacific Power announced a 12.9% rate hike earlier and has filed for an additional 16.9% for 2025, as KGW reported. Idaho Power's bills went up by 4% in January. The spree of rising costs, unprecedented at the PUC, leaves many Oregonians dreading their monthly utility bills.

The Oregon Public Utility Commission's chair, Megan Decker, acknowledges the burden of rising costs, stressing that rate increases are approved based on evidence and necessity. Megan Decker said, "We only approve rate increases when we are persuaded based on evidence that the utility is managing reasonably, but costs have nonetheless gone up," in a statement obtained by KATU. The commission is factoring in utility companies' pressures from extreme weather events, such as ice storms, extreme heat, and wildfires, which demand costly infrastructure upgrades.

The commission also considers public concerns over costs, with chair Megan Decker assuring that customers' comments are synthesized and presented to commissioners. "The commissioners can use those comments as part of the overall framework for how they make the decision," Decker explained. Residents are encouraged to communicate their worries, as the commission denies rate increase requests when the process deems utilities unaccountable. Notably, the request compiled by PGE is under a 10-month review with the PUC, and if passed, the new rates would take effect starting January 1, 2025. "We are focused on delivering reliable electricity to customers while keeping the cost as low as possible," Larry Bekkedahl of PGE told KGW.

Meanwhile, those struggling with utility costs are facing harsher times ahead. St. Vincent De Paul of Portland, which runs a major utility assistance program, is seeing a daily deluge of 100 to 150 calls. The potential rate hikes would place added strain on already vulnerable populations. "It's going to make it tough for people who are challenged with paying their utility bill, especially the people we serve," Craig Loughridge, the emergency services program manager, said in a statement to KGW.

Portland-Transportation & Infrastructure