PacifiCorp’s interim rate hike request rejected by Oregon regulators

SALEM, Ore. (KTVZ) -- The Oregon Public Utility Commission (PUC) has denied PacifiCorp's request for an interim rate increase. This denial comes as the utility seeks a larger overall customer revenue increase of $170.7 million, or 8.6%, in its general rate case.

PacifiCorp had sought a temporary 2.8% rate increase, which was to take effect starting June 4, 2026. The company stated this interim increase was necessary to address financial pressure and concerns regarding its credit ratings. If approved, the interim rate would have reduced the size of potential rate adjustments in 2027 and shifted their effective date from April to July 2027.

The Commission reviewed PacifiCorp's filing for interim rates and determined there was no justification to approve the temporary request. The PUC acknowledged that PacifiCorp has taken several actions to improve its financial standing, many of which were previously approved by the Commission. These actions include a sale-leaseback arrangement for the Boardman-to-Hemingway transmission project, adjustments to the company's capital structure and an expanded line of credit.

Interim rates are infrequently approved in Oregon, typically reserved for specific situations where a utility demonstrates it cannot continue providing safe and reliable service during a general rate case review. Such reviews usually span approximately 10 months.

PUC Chair Letha Tawney emphasized the seriousness with which the Commission considered the request. "We took this request seriously because the financial health of the utilities we regulate directly impacts safe and reliable service for customers," Tawney said. "Emergency rate increases require a very high bar and PacifiCorp did not demonstrate need at this time. The Commission is willing to evaluate a renewed request, should circumstances change."

PacifiCorp provides service to approximately 600,000 customers across Oregon.

The Commission will now proceed with an investigation into the general rate revision request under the standard 10-month suspension period. This review process, which includes PacifiCorp's full request for the proposed $170.7 million revenue increase for capital investments, operating costs and other expenses, will continue through 2026. A final decision from the Commission is anticipated in March 2027.