Portland General Electric is seeking a double-digit rate increase to its customers’ energy bills starting in 2025. The request comes after the utility experienced a record number of customer disconnections in spring, the most since it started reporting figures in 2018.
In February, PGE asked the Oregon Public Utilities Commission for a 7.4% rate hike that would go into effect next year. Now the utility, which serves about 900,000 customers statewide, is requesting approval to instead raise its rates by 10.9% for 2025.
According to a prepared statement provided by a PGE spokesperson, the increase would reflect the costs of purchasing power this year, and also the price of maintaining and upgrading its equipment.
“This will help our system withstand changing weather patterns, update legacy infrastructure for increased resilience and allow dependable energy to flow to an increasing number of customers, and in multi-directions,” PGE’s statement said.
PGE’s request to raise rates in 2025 is in part due to the utility’s ongoing work toward upgrading the grid and meeting customer demand, like adding batteries for renewable energy storage.
But the increase would go into effect at a time when the utility has seen a record number of customer disconnections, as more Oregonians are facing higher energy bills each year.
The recent request comes on the heels of the utility’s 18% increase in 2024, which was its highest rate increase in 20 years. PGE’s rates have gone up more than 40% since 2021.
And it is not the only utility raising its rates. Many of Oregon’s largest for-profit electric and gas utilities have steadily increased their rates over the past four years, citing the price of fossil fuels, the transition to renewable energy and company profits as the reason for rate hikes. Those higher costs are beginning to impact more Oregonians’ ability to afford 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 the cost of electricity as affordable as possible,” PGE’s statement said.
According to PGE, it shut off power to 4,712 households in April. In May, it shut off power to 4,303 households. Those are the highest customer disconnections since it began reporting figures in 2018. Disconnections occur when the utility does not receive a payment for a bill after 90 days.
Charlotte Shuff, outreach and communications director with nonprofit watchdog Oregon Citizens’ Utility Board, said these increases are hurting people.
“This has been a really rough year for utility customers. In January, we had an increase for PGE of 18% for residential customers and then our families were immediately hit with a giant ice storm,” she said.
For about a week, PGE customers faced record low temperatures, which translated to higher energy bills “and that’s really starting to show up in what we’re seeing in the data and that customers were really pushed to a breaking point,” she said.
FILE - Crews work on downed power lines near in Northeast Portland on Jan. 13, 2024. Customers' struggles paying higher utility bills after abnormally cold weather have been linked to record levels of disconnections this spring. Now Portland General Electric is seeking a 10.9% rate hike.
Kristyna Wentz-Graff / OPB
This spring was the first time the group has seen an excess of 4,000 PGE disconnections two months in a row, she said.
“This is not something that is normal,” she said. “A lot of people are really struggling. There’s a lot of people behind on their bills even still.”
Earlier this year, Oregon CUB proposed a cap on rate increases that would limit utilities to raising energy rates by no more than 10%, or 7% plus inflation, whichever is the lowest.
Under that proposal, utilities would set rates by first prioritizing their commodity, or power, costs. Along with these proposals, Shuff said Oregon CUB is also hoping to see utilities offer customers more bill discount programs to improve energy affordability.
“We’re trying to pair both of these solutions at once so that people can start getting that relief now and also are not seeing those benefits diminish as rates continue to go up,” she said.
PGE currently offers discounts for low- to moderate-income households, which can take up to 60% off their monthly bills. It estimates there are about 75,000 customers not yet enrolled in the program that may be eligible to participate.
The Oregon Public Utilities Commission, the regulatory agency that oversees energy rates, is accepting public comment through Aug. 27.
The public can call the OPUC at 503-378-6600 or 800-522-2404 or submit a comment here.
General rate cases are a multi-step yearlong process. The regulatory agency makes their final decision at the end of the year.