Regulators have approved a second year of electric rate increases for Portland General Electric customers, and a watchdog group says the increase might be even steeper before they take effect in January.
The Oregon Public Utility Commission on Tuesday approved a yearly adjustment for power supply costs and a general rate increase for all other utility costs, which are expected to raise monthly residential bills by about 17.2% starting Jan. 1.
There hasn’t been an increase in PGE rates like this in more than two decades, according to the Oregon Citizens’ Utility Board, a nonprofit consumer advocacy group. The last major increase in electric bills occurred in the early 2000s during the Western energy crisis that was precipitated by an energy shortage due to market manipulation by firms like Enron.
The increase in the rates is driven by higher power costs, safety and reliability investments and state clean energy goals, the commission said.
According to PGE, the typical residential customer uses about 795 kilowatt hours per month with an average monthly bill of $130. With the forecasted increase, the average customer can expect monthly bills to increase by roughly $20.
The citizen watchdog group however, said that the general rate hike could rise even further — depending on further adjustments slated to come out later this month and in December.
The group argues that PGE should be more transparent about what the total rate increase will be come January so that customers can prepare ahead of time.
Bob Jenks, the executive director of the Citizens’ Utility Board, said that the roughly 17% increase only represents the general rate and power supply increases but doesn’t include other cost adjustments related to things like energy projects, battery storage, wildfire mitigation and others.
Jenks said that in November and December 2022, PGE filed extra adjustments that ultimately raised rates by another $75 million for 2023.
“We’re concerned that if something similar happens this year, that could put the increase over 20%,” Jenks said. “If that happens, that would be the highest increase since the Western Power Crisis of 2001. And we think customers ought to deserve some notice and that they know what’s coming.”
The utility watchdog group said the forecasted rate increases for 2024 would mark the second year in a row that PGE has increased its rates. They said residential monthly PGE bills in 2023 increased between 7% and 20%.
Sarah Hamaker, spokesperson for PGE, said that while the company has only disclosed the general rate increases approved by the utility commission, PGE “will work with the commission, stakeholders and customer once a final number is determined.”
“We do not yet have our final power cost updates, or approval on additional settlements and deferrals from the OPUC, so there is not a final amount that has been determined at this time,” Hamaker said, adding that PGE will share the final rate adjustments once passed.
Hamaker said PGE would work with customers to set up payment plans, extend payment due dates and help customers connect with community resources such as the Low-Income Home Energy Assistance Program, Oregon Energy Assistance Program or Oregon Energy Fund. The company has also expanded its Income Qualified Bill Discount Program for those who qualify, she said.
The Public Utility Commission is expected to announce final rates for PGE in December.
Pacific Power has also filed to change its rates for 2024, but the amount — whether an increase or decrease — hasn’t been released and the commission hasn’t ruled on it yet, according to Public Utility Commission spokesperson Kandi Young.
Meanwhile, the utility commission recently approved lowering natural gas rates for NW Natural customers, which went into effect Nov. 1. The decrease was a result of lower costs of natural gas supply and from customers overpaying bills in the last year.
— Kristine de Leon; kdeleon@oregonian.com