PORTLAND, Ore. — Customers of utility company Portland General Electric will pay more on their bills next year, after state regulators finalized rate increases that go into effect Monday, Jan. 1.
PGE proposed a 14% rate increase earlier this year, but the Oregon Public Utility Commission has been deciding on the exact rate structure over the last few months. The PUC foreshadowed the rate changes at the end of October, noting that they would not be finalized until December.
Residential customers of PGE will see an average increase of 18%. For a single-family residence using the average of 795 kilowatt-hours per month, monthly bills will go up by $24.59.
Average rate increases are somewhat less for businesses. Small commercial customers will see an increase of 14.4% in the new year, while large commercial and industrial customers will see an average increase of 12.5%.
“The rate increase reflects the need to invest in the reliability and resiliency of PGE’s system, advance policy objectives like equity and clean energy, and the reality that PGE faces inflationary pressures and high market power prices,” said Megan Decker, PUC chair. “We recognize how significant this rate increase will be for families and businesses, and we encourage them to seek out help with bills through energy efficiency and the rate discount program that has been expanded to better support Oregonians experiencing low incomes.”
According to the Oregon PUC, rate increases are driven by capital investments like the Faraday Resiliency and Repowering hydroelectric project, resiliency and reliability upgrades for transmission and distribution systems, increased costs for PGE's vegetation management program, and inflation.
Also contributing to the rate hike is an annual adjustment by the PUC for power supply costs, which includes PGE's costs for purchasing power to meet customer demand.
"This adjustment resulted in an increase in customer rates due to power costs rising sharply and increasing in volatility in the Western electricity market," the PUC noted in a statement.
This marks the second year in a row that PGE has increased its rates. In 2023, rates for residential customers increased between 7% and 20%.
The Energy Trust of Oregon offers some incentives and opportunities for households with low or moderate incomes, as well as tips to reduce energy consumption. PGE offers some similar options, including an Income Qualified Bill Discount Program.
