Oregon PUC holds hearing on Pacific Power’s nearly 22% rate hike request; public has until mid-June to weigh in

(Update: adding video, testimony before PUC, Central Oregon residents)

SALEM, Ore. (KTVZ) – The Oregon Public Utility Commission hosted a virtual event for the public Tuesday evening to comment on Pacific Power’s proposal to increase to electricity rates next year, including a nearly 22% hike for residential customers. But there's still several weeks for the public to weigh in.

Having already faced this year's 13% increase in the utility's residential rates, Central Oregon resident Barbara Bates said, "I'm a retired person, so I'm on a fixed income and I think it's -- 19% increase in anything is extremely difficult."

Another resident, Vince Rowley, said, "I'm definitely opposed to it as a ratepayer. Definitely, we're out."

The PUC says a 22% increase would cost customers upwards of $30 more a month. Large commercial companies would see less than half the increase at 10.4%.

Melissa Nottingham, manager of consumer services with the PUC, said, “The company is asking for $322.3 million, or an increase of 17.9% over existing rates. Residential includes both single-family and multi-family homes using an average kilowatt hour for each type of service."

Pacific Power declined an on-camera interview, instead providing a lengthy statement. When asked why the rate hike would be higher for residents than large companies, Pacific Power stated that the two groups can't be compared, and charges differ between the two.

According to the company, for residents energy pricing is combined with distribution costs to pay for infrastructure such as poles, wires, and transformers. 

Pacific Power said larger companies “pay additional ‘demand’ charges, which cover infrastructure costs based on what is required to serve them." 

Told that's how it works, Rowley replied, "I would disagree, and I think it should be spread over the entire spectrum evenly." 

Bates chimed in, saying, "They're trying to make more money to cover their costs from their fires that they've had and so forth. But it seems like that's something they should have been playing for all along, and doing a better job with regular maintenance, rather than all of a sudden coming up with a 19% increase."

Pacific Power claims the rate hikers are necessary because of factors including wildfire risk management, investments in renewable energy and the rising costs to finance utility operations. 

Nottingham said, "The second-largest, at 24.1% of the overall ask, is a catastrophic fire fund. This amount would represent Oregon's contribution to a multi-state response to covered claims for catastrophic events in excess of the company's insurance coverage.”

Participants at the PUC's Tuesday evening virtual forum expressed discontent that the rate increase would pay for wildfire mitigation.

One attendee said, "The company and its shareholders should be responsible for damages, and not customers."

Another said, "They had to settle for $290 million for the wildfire infrastructure that was damaged. and then suddenly double-digit increases started coming in 2023, 2024, and now 2025."

Pacific Power also noted that because its a utility company providing essential services, its required by law to remain finically healthy.

But customers are still frustrated by the proposed rate increase.

Rowley said, "Quite frankly, I'm going to be able to pay the bills, you know? But i think people in the lower-income bracket are going to get hurt by this."

Customers can expect written testimony to be reviewed by September, and oral arguments will take place in October. Customers can submit comments in writing or by phone between now and June 14.

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More info from the PUC:

Tuesday's hour-long online event provided an opportunity to speak directly to the commissioners about the proposed rate increase. Customers can continue to submit comments in writing or by phone through June 14.

Pacific Power, which provides electric services to 627,000 Oregon customers, filed a request earlier this year to increase overall revenues by $322.3 million, or about 17.9% for all customer types combined.

If approved, residential single-family customers using an average of 950 kilowatt hours (kWh) per month would see a bill increase of $30.66. For a residential customer in a multi-family home using an average of 650 kWh per month, bills would increase by $18.51. Actual percentage increases will vary depending on customer type and usage. 

Pacific Power’s proposed impacts for the different customer types due to the general rate case filing are noted in the chart below:

Customer Types	Residential	Small Commercial	Large Commercial	Industrial	Irrigation
Percentage increase for average usage	21.6%	22.4%	10.4%	14.1%	22.4%

 Pacific Power identifies several reasons driving the general rate case filing, including investments in transmission infrastructure, wind generation to serve customer load, upgrading the customer service system, increased costs of capital to reflect updated market conditions and risk, and wildfire and vegetation management related costs.

The company also proposes an insurance cost adjustment and funding for a proposed catastrophic fire fund. 

Pacific Power’s general rate case filing is undergoing a nearly year-long review and will be fully investigated on behalf of electricity customers by the PUC, the Oregon Citizens’ Utility Board, and others. This public comment event is part of that investigation, which will conclude in December when the commissioners rule on the request.

The commissioners may approve or modify Pacific Power’s request and will only approve rate increases if fully justified by the company. New rates, if approved, are expected to go into effect January 1, 2025. 

In a separate filing, which would also go into effect January 1, 2025, Pacific Power proposed an update to its annual power costs, which is currently forecast to be a decrease in rates of about 1%.

Submit comments directly to the PUC by June 14, 2024

• Public Comment Form online
• email PUC.PublicComments@puc.oregon.gov  
• Call 503-378-6600 or 800-522-2404 (all relay calls accepted) 
• Mail comments to: Oregon Public Utility Commission, Attn: AHD – UE 433, PO Box 1088, Salem OR 97308-1088 

Stay Informed

To stay informed throughout this case, individuals may request to be added to the distribution list to receive publicly available documents. Submit requests by email to puc.hearings@puc.oregon.gov or by calling 503-378-6678. Please specify Docket No. UE 433 in the request.

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The Oregon Public Utility Commission (PUC) regulates customer rates and services of the state’s investor-owned electric and natural gas utilities, including Portland General Electric, Idaho Power, Pacific Power, Avista, Cascade Natural, and NW Natural. The PUC also regulates landline telephone providers and select water companies. The PUC’s mission is to ensure Oregonians have access to safe, reliable, and fairly priced utility services that advance state policy and promote the public interest. We use an inclusive process to evaluate differing viewpoints and visions of the public interest and arrive at balanced, well-reasoned, independent decisions supported by fact and law. For more information about the PUC, visit oregon.gov/puc.