Portland General Electric (PGE) has recently submitted a request to the Public Utility Commission (PUC) to raise rates by 7.4% starting in 2025. This filing comes just a month after PGE implemented its largest rate increase in decades, raising rates by 18% as of January 1st. If approved by the PUC, the proposed rate increase would come into effect around January 1st, 2025.
The previous rate increase in January resulted in an average customer seeing an additional cost of around $20. Prior to that, PGE had already raised rates by 14.8% at the beginning of 2023. PGE serves approximately 900,000 customers and around 2 million people in various Oregon cities, including Salem, Silverton, Woodburn, Newberg, and Portland.
As an investor-owned utility, PGE’s rate increases are subject to regulation by the Public Utility Commission, which grants exclusive territories in exchange for overseeing rate adjustments. The final decision on the rate increase rests with the three-person commission, and the process can take between eight to ten months.
In addition to PGE, Pacific Power also made a similar request to the Public Utility Commission earlier this month, seeking a rate increase of 16.9% starting in 2025. PGE’s filing justifying the rate increase cites several reasons, including the need to enhance reliability through local battery energy storage systems, modernize transmission and distribution grids, and invest in hydropower and wind production facilities.
The decision on whether to grant the rate increase will involve careful consideration by the Public Utility Commission, taking into account the potential impact on consumers and the need for continued investment in the utility’s infrastructure. PGE’s proposed rate increase aims to support the improvement of its services and the development of renewable energy sources, aligning with broader environmental goals.
As the process unfolds, customers and stakeholders will be closely monitoring the outcome and the potential implications for future energy costs. The Public Utility Commission will play a crucial role in determining the balance between the utility’s financial needs and the affordability of electricity for customers across Oregon.
