Starting in 2025, residential Pacific Power customers in Oregon will face a nearly 10% increase in their electric bills, though this is much lower than the company initially requested.
The Oregon Public Utility Commission (PUC) announced on Thursday that it approved an overall rate hike of about 8.5% for all customer types, effective January 1. PacificCorp had originally asked for a 17.6% increase.
For residential customers, the rate will rise by 9.8%, which is still a significant jump, but much lower than the 21.6% increase PacificCorp had proposed in April. At that time, the company estimated that a typical household using 950 kilowatt-hours per month would see a $30.66 rise in their monthly bill. No new estimate was provided on Thursday.
The PUC made its decision after reviewing over 60 contested issues, including:
- Costs related to restoring service after the 2020 wildfires
- Increases in wildfire insurance premiums
- The planned phase-out of coal plants
- The impact of large customers like data centers
- The Gateway South Transmission Project
Pacific Power serves 627,000 customers in Oregon.
The full decision also includes adjustments to rates based on the cost of purchasing power and other factors. While some rate increases will take effect in January 2025, residential rates will be finalized after a review of additional filings in December 2024.
The main drivers for the rate increase are investments in transmission, generation, and wildfire-related costs. However, the PUC reduced PacificCorp’s request by requiring the company to take on more financial responsibility and make sure its spending benefits customers.
The PUC also included protections for vulnerable customers, including prohibiting disconnections for people in medical programs or bill discount programs until March 31, 2025, and increasing bill discounts for low-income customers.
While many issues were disputed, the PUC addressed over 60 points, including wildfire restoration costs, insurance premiums, and a more reasonable exit from coal power. The final rate changes will be reviewed in December 2024 before taking effect in January 2025.