PORTLAND, Ore. — Just as nobody thinks about electricity service until the power fails, rates don't get much attention until they go up. Then there's hell to pay.
Oregon's two major investor-owned electric utilities are finding that out. After a long run with prices only creeping higher, Portland General Electric and PacifiCorp's Pacific Power utility face an uproar over big spikes and the prospect of more.
PGE (NYSE: POR), the state's largest electricity provider, felt a particular sting last week when the Citizens' Utility Board asked regulators to scrap the company's proposed 7.4% increase for 2025.
The residential ratepayer watchdog inevitably works to trim increases in the long, public ratemaking process, but its quick call to trash PGE's proposal was unprecedented. CUB's leadership, noting that PGE's request would push rates more than 40% above where they stood in 2022, said the toll on customers was simply too much.
It's a trend that raises further questions about regional affordability, long a Portland competitive advantage over other West Coast urban areas. Expensive housing, high taxes and the cost of various city, county and Metro services have already chipped away at that reputation. Now, once comparatively reasonable electricity rates appear under threat as big investments to tackle decarbonization, wildfire risk, increasing demand and transmission hurdles loom.
It's put a sharp focus on PGE, which provides power to most of the city and nearly all its suburbs. It's not a city bureau like Portland Water (whose rates are also climbing), but to a large degree and in spirit and perception it's Portland's electric company.
PGE executives say they're doing what's needed to deliver the emissions-free, reliable electricity system that customers and policy makers have demanded.
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