Many residents in Salem may see an increase in their electric bills next year due to a rate hike approved for Portland General Electric (PGE), though the increase will be less than the utility originally requested. On Friday, the Oregon Public Utility Commission announced a decision to implement a rate increase of approximately 3.3%, effective January 1. PGE serves around 930,000 customers statewide.
Customers of Portland General Electric can also anticipate an increase in their monthly utility bills following the Oregon Public Utilities Commission’s approval of the company’s rate hike on Friday. The approved general rate increase of 3.3% will be combined with additional adjustments, resulting in an overall increase of 6.2% that will affect residential, commercial, and industrial customers in 2025.
The commission’s ruling curbed PGE’s initial request for a 7.4% increase, which was later raised to 10.9% in August. This year’s request for an additional 7% increase starting in 2025 drew immediate backlash after PGE reported a record number of customer disconnections in the spring of 2024, the highest since it began tracking these figures in 2018.
During a public hearing in May, numerous residents passionately urged the commission to reject the proposed increase. When factoring in the overall adjustments, residential rates are expected to rise by about 5.5% next year. Since 2021, PGE rates have surged by 40%, and the utility reported a profit of $228 million in 2023.
The most recent increase, which took effect on January 1, coincided with an ice storm that left many in the Portland metro area and Willamette Valley without power, leading to bills of $300 to $400 for affected customers. This 18% increase marked the largest hike in two decades.
PGE projected that the proposed rate hike would generate an additional $202 million annually, with $129 million allocated for projects and $57 million for operations and maintenance. In response to the potential impacts of rate increases during the winter months, the commission implemented protections for vulnerable customers. This includes prohibiting PGE from disconnecting those with medical certificates and participants in bill discount programs until March 31.
The commission mandated that the utility enhance bill discounts and extend emergency assistance for overdue balances to low-income Oregonians. PGE officials state that the rate increase will facilitate infrastructure improvements, including a local battery energy storage system aimed at enhancing the availability of renewable energy and decreasing reliance on the energy market.
