PGE rate increase: Portland residents will likely see 5.5% hike in 2025

PORTLAND, Ore. (KOIN) – Portland General Electric customers are expected to see a jump in their monthly utility bills after the company’s rate increase was approved by the Oregon Public Utilities Commission on Friday.

The general rate increase of 3.3% is expected to combine with other adjustments to create a 6.2% increase that will be distributed across residential, commercial and industrial customers in 2025.

Residents will likely see a combined increase of approximately 5.5%, according to the commission. PGE is expected to file a calculation of the final rate changes for each customer type within the next week, so that the changes can go into effect on Jan. 1, 2025.

The PUC announced its rate increase was approved based on "infrastructure needs," though the commission limited the percentage in order to "consider PGE's recent increases and the corresponding pressure on its customers."

"Our decision denies nearly all of PGE's requests for expense growth beyond its last full year of actual, demonstrated expenses, plus inflation," officials said. "These adjustments result in our adopting a lower rate increase than PGE requested."

This increase comes after Portland residents received an 18% rate hike in early 2024.

Since 2021, PGE customers have seen more than a 43% increase in their electric bills. The most recent rate increase, once finalized, will bump that number to 47.5%.

In February 2024, PGE first requested state regulators to approve a 7.4% rate increase, which was then followed by an increased request of 10.9% in July. In response, Mayor Wheeler submitted a letter to the PUC on Aug. 29 that urged the commission to reject the proposal.

An advocacy group known as the Oregon Citizens’ Utility Board also asked the PUC to delay or reject the increase on behalf of local residents, who claim their cost of living has become unaffordable due to rising utility costs.

“They can’t be raising rates three and four times the rate of inflation year after year because their customers simply can’t afford it,” Bob Jenks, the executive director of the Oregon Citizens’ Utility Board, previously told KOIN 6 News.

However, PGE had filed a third testimony to the PUC two weeks before Mayor Wheeler’s letter that had updated the company’s request to a reduced rate hike of 6.3%.

In late November, Sen. Ron Wyden sent a letter to PGE asking for a breakdown of what economic factors have led to this drastic increase and what can be done to lessen any future rate hikes.

The letter included a series of questions related to what could be driving these rate hikes — such as the utility company’s overall load growth — and whether federal funding and tax incentives are being used to reduce costs for PGE customers.

In her response, PGE President and CEO Maria Pope outlined several reasons driving the increases, including inflation and investments in infrastructure, while highlighting PGE programs that help customers pay their utility bills, including payment extensions and Time Payment Arrangements.

This decision also comes after the PUC decided on Thursday to slash PacifiCorp’s percentage to 8.5% despite the utility company’s year-long attempt to hike rates by 17.9%.

"We reduced several expenses,” PUC Commissioner Lisa Tawney said. “The company took one particularly large expense around wildfire, self-insurance, sort of out of their ask. But additionally, we told them they need to come back, for several costs related to restoring the system, the electric system after the 2020 wildfires. We also reduced a range of expenses that were related to growth of the company and those sorts of issues."

This came out on the same day the federal government filed to sue PacifiCorp for their role in the 2020 wildfires in Douglas County.

According to the court documents, the U.S. Attorney General accuses the power utility for failing to properly inspect, maintain, and operate equipment leading to the Archie Creek Fire that burned more than 130 thousand acres. 

The complaint also said PacifiCorp has a history of violations including hundreds of violations annually tied to lack of vegetation clearance and intentionally operating insufficiently maintained power lines.

The U.S. is seeking for the power company to cover reforestation, fire suppression costs, and other damages — if found guilty — could cost them hundreds of millions of dollars.

PacifiCorp shared the following statement with KOIN 6 News. 

“PacifiCorp is aware of the United States government’s intention to pursue litigation against the company related to the 2020 Archie Creek wildfire. The company will review legal filings and will respond appropriately.”