Portland General Electric is seeking a double-digit increase in its customers’ electricity bills starting in 2025. The demand comes after the utility reported a record number of power outages in the spring, the highest since it began releasing figures in 2018.
In February, PGE asked the Oregon Public Utilities Commission for a 7.4% rate increase to take effect next year. Now the utility, which serves about 900,000 customers nationwide, is seeking approval to raise its rates by 10.9% for 2025 instead.
According to a prepared statement from a PGE spokesman, the increase would affect both the cost of purchasing electricity this year and the cost of maintaining and upgrading equipment.
“This will help our system withstand changing weather patterns, modernize existing infrastructure to increase resilience, and provide reliable energy to a growing number of customers and in multiple directions,” PGE said in the statement.
PGE’s request for a rate increase in 2025 is due in part to the utility’s ongoing work to modernize the grid and meet customer demand, such as adding batteries to store renewable energy.
However, the increase would take effect at a time when the utility is seeing a record number of power shutoffs among its customers as more and more Oregonians face higher energy bills each year.
The latest request follows the utility’s 18% rate increase in 2024, the highest rate increase in 20 years. PGE’s rates have increased more than 40% since 2021.
And Oregon isn’t the only utility raising rates. Many of Oregon’s largest for-profit electric and gas utilities have raised their rates steadily over the past four years, citing fossil fuel prices, the transition to renewable energy and corporate profits as reasons for the price increases. These higher costs are starting to affect more and more Oregonians who are unable to pay their energy bills.
“We recognize that rate increases are challenging for our customers. As we modernize and strengthen the grid, PGE is focused on keeping electricity costs as affordable as possible,” PGE said in a statement.
According to PGE, 4,712 households had their power disconnected in April, compared to 4,303 in May. These are the highest number of customer disconnections since reporting began in 2018. Disconnections occur when the utility does not receive payment for a bill after 90 days.
Charlotte Shuff, director of public relations and communications for the nonprofit Oregon Citizens’ Utility Board, said these increases would hurt people.
“This has been a really tough year for utility customers. In January, we had an 18% PGE increase for residential customers and then suddenly our families were hit with a huge ice storm,” she said.
For about a week, PGE customers faced record-breaking cold temperatures, leading to higher energy bills. “That’s really starting to show up in the data now and shows that customers have really been pushed to the limit,” she said.
FILE – Workers work on downed power lines near northeast Portland on Jan. 13, 2024. Customers’ difficulties paying higher electric bills after unusually cold weather are linked to the record number of power shutoffs this spring. Now Portland General Electric is seeking a 10.9% rate increase.
Kristyna Wentz-Graff / OPB
This spring, for the first time, the group recorded more than 4,000 PGE shutdowns for two months in a row, she said.
“This is not normal,” she said. “Many people are really struggling. Many are still behind on their bills.”
Earlier this year, the Oregon CUB proposed a cap on rate increases that would limit utilities to raising their energy prices by no more than 10 percent or 7 percent plus inflation, whichever is lower.
Under this proposal, utilities would set their rates by first prioritizing their commodity or electricity costs. In addition to these proposals, Shuff said Oregon CUB also hopes utilities will offer more bill discount programs to their customers to make energy more affordable.
“We’re trying to combine these two solutions at the same time so that people can get that relief now and not watch those benefits diminish while prices continue to rise,” she said.
PGE currently offers rebates for low- to moderate-income households that can save up to 60% on their monthly bills. It is estimated that about 75,000 customers are not yet enrolled in the program but could be eligible to participate.
The Oregon Public Utilities Commission, the regulator that oversees energy prices, is accepting public comments through Aug. 27.
The public can call the OPUC at 503-378-6600 or 800-522-2404 or submit a comment here.
General tariff cases are a multi-stage process that spans a year, with the regulator making its final decision at the end of the year.
