Oregon State Regulators Approve Electricity Rate Hikes for 2025: What You Need to Know
Residents of Oregon can expect to see an increase in their electricity rates in 2025. The state’s Public Utilities Commission recently approved rate hikes for Pacific Power and Portland General Electric, resulting in an overall 50% increase for residential customers since 2020. While these rate increases are lower than what the companies had requested, they are significant.
Pacific Power and Portland General Electric serve over 1.4 million customers in Oregon. Both companies will be raising their rates for all customer types, with Pacific Power’s rates increasing by 8.5% on average and PGE’s rates going up 6% in 2025. The commission diligently reviewed the issues raised by the companies to justify these increases, scrutinizing expenses and holding utilities accountable.
During recent years, rate increases have been driven by various factors such as inflation, infrastructure development for clean energy generation, increased power costs, higher insurance expenses, and a growing demand for energy. This demand has particularly been noticeable in industrial sectors like data centers and semiconductor manufacturing.
To address concerns that residential customers are disproportionately shouldering the burden of growing energy needs, Oregon Senator Ron Wyden has raised questions about rising prices. Both Pacific Power and Portland General Electric have seen record disconnections for non-payment in 2024, prompting the Public Utilities Commission to take measures to protect low-income customers from being disconnected during the winter months.
Additionally, new policies around bill discount programs and energy forecasting for large industrial customers have been enacted. For example, the commission will now require large industrial customers, like data centers, to predict their energy needs with 95% accuracy and will penalize them for miscalculations.
Historically, the utilities have attributed rate increases to various factors, including wildfire costs. Pacific Power, for instance, is allowed to raise rates to cover $25 million in restoration work after the 2020 Labor Day fires. The company has faced significant legal challenges and financial obligations following these fires, with the federal government recently seeking reimbursement for costs incurred during firefighting efforts.
In conclusion, while the approved rate hikes are not what customers hoped for, they are a reflection of the evolving energy landscape in Oregon. The measures put in place by the Public Utilities Commission aim to ensure fair treatment for consumers while addressing the growing demands on the state’s energy resources.
