Energy collected by solar panels produces direct current voltage which is then passed through an inverter, converted to alternating current, and then able to charge and store the energy on large batteries located on site. Portland General Electric partnered with NextEra Energy Resources to build a first-of-its-kind facility that will use an innovative battery technology that supporters are calling a “game changer” for Oregon’s renewable energy transition.
Kristyna Wentz-Graff / OPB
Portland General Electric announced Thursday it would like to increase average rates for customers by 7.4% in 2025, following the historic rate increases those customers only recently started paying.
The utility said it primarily needs to raise rates again to build out grid-scale battery storage to handle increased amounts of solar and other renewable energy being produced in Oregon.
“To achieve the day-to-day reliability that customers expect while simultaneously solving for the challenges of the future, Portland General Electric is deploying battery energy storage technology to modernize and strengthen the grid,” Larry Bekkedahl, a senior vice president at PGE, said in a statement.
The company said it would also use the rate hikes to build more transmission lines and upgrade its power generation facilities.
The rate hike is merely a proposal at this stage. It would need approval from the Oregon Public Utilities Commission before taking effect in 2025.
Any rate hike is likely to upset PGE’s customers, who have expressed dissatisfaction at the massive increase that took effect in January. That increase totaled around 18% for residential customers and was the utility’s largest rate increase in 20 years.
Utilities in Oregon have said they’ve faced significant cost increases in recent years as they’ve dealt with rising wildfire danger linked to climate change and state requirements to meet significant greenhouse gas reduction targets by 2030.
PGE does offer a discount program for low-income residents. A single resident would need to earn less than $33,427 a year to qualify, while a four-person household would need to earn less than $64,282.