Earlier this year, when Portland General Electric asked state regulators for permission to raise interest rates another 7% starting in 2025, opposition was immediate.
In the months since, there have been attempts to try to convince the Oregon Public Utility Commission, the company that provides electricity to about 2 million people in 51 cities in the Willamette Valley — including most of Salem — not to let it raise rates again. .
At a hearing Thursday evening with PUC commissioners, the public outcry against the rate increases was unanimous.
When combined with previous interest rate increases in the past two years, a PGE rate increase would raise interest rates by about 40% in a two-year period.
“Annual rate increases cannot be the new norm,” said Nikita Daryanani, director of climate and energy policy at the Alliance of Communities of Color. “There must be another way.”
What does PGE require?
Portland General Electric, Oregon’s largest electric utility, is asking for an average raise of 7.4% starting in 2025.
It also wants to raise prices for small commercial customers by 9.4%, large commercial customers by 7.4%, and industrial customers by 4.2%.
For residential customers, this would result in a 7.2% increase. For people who use an average of 886 kilowatt-hours of energy each month, their bills would increase by about $11.33.
The rate increase will bring PGE an additional $202 million annually.
Portland GE says it will spend the bulk of the money on capital projects ($129 million) and operations and maintenance ($57 million).
PGE says the money will be used for battery energy storage projects, transmission lines and technology upgrades.
The company said it had $228 million in profits in 2023. It said the rate increase would actually reduce profits by $18.1 million, according to its most recent filings.
Unanimous opposition to increasing interest rates
Thursday’s PUC public hearing saw more impassioned pleas to not allow Portland General Electric to raise interest rates again.
“From what I heard tonight, it really gives me the feeling that it could impact some people a lot more than others, and we need to find a more equitable way to make sure that the improvements that PGE is asking for can happen, but perhaps in a completely ‘nonsense’ kind of rate structure,” the clerk said. Marion County Bill Burgess for PUC.
The most recent surge, which began Jan. 1, came days before an ice storm hit the Portland metro area and the Willamette Valley. Many people were without power, and the rest faced electricity bills of $300 to $400 a month, according to those who testified.
“This is not the time to put forward proposals to raise customer rates,” said Sylvia Tanner, Multnomah County’s chief energy policy analyst.
Lafayette City Manager Branden Drews said that between the PGE rate increases and increases in things like water and trash, people’s usage increases in his district have increased by about 80% in three years.
Druce said other people in his district of Yamhill County were afraid to speak out against the commission rate increase because of the franchise fees they receive. PGE pays tolls for use of the cities’ right-of-way.
“Franchise fee money is not worth people’s pain and suffering,” Druce said.
Some people argued that the price increases that occurred were larger than reality and that they doubled their electricity bills.
The people pointed out that PGE submitted its rate increase request a month after the 18% rate increase went into effect in January.
“I have to decide every month if my daughter is going to be able to eat, get hot or cold enough to be comfortable,” said Karina Graham of Hillsboro.
“It is inhumane for people to have to choose whether to freeze, overheat or buy food for the month.”
She asked the committee to lower PGE rates.
What’s next for your PGE rate increase request?
The committee is expected to make its decision on the interest rate issue in December. If the rate increase goes into effect, it will likely begin on January 1, 2025.
People can submit their comments to the Public Utilities Commission by June 14 at puc.publiccomments@puc.oregon.gov, by phone at 800-522-2404 or by mail to the Oregon Public Utilities Commission, Attn: AHD – UE 435, PO Box 1088, Salem, OR, 97308-1088.
Bill Buehler covers Marion and Polk counties for the Statesman. Contact him at bpoehler@StatesmanJournal.com
