Proposed Utility Rate Hike Pause Amid Wildfire Lawsuits
Three Oregon lawmakers are proposing a new rule to prevent utility companies from hiking rates while still entangled in lengthy lawsuits over wildfires. Representatives Jami Cate, Virgle Osborne, and Ed Diehl introduced the idea shortly after the federal government filed a lawsuit against PacifiCorp, the parent company of Pacific Power, concerning expenses related to the Archie Creek fire in 2020. This move is in response to the culmination of various lawsuits against the company since the fire occurred in 2020.
The trio plans to present their ban on rate increases for such utilities during the upcoming legislative session, set to commence on January 21. Meanwhile, the Oregon Public Utilities Commission recently granted Pacific Power’s request for raising residential electricity rates by almost 10% in 2025. This utility provider is the state’s second-largest investor-owned electric company, catering to approximately 574,000 customers.
State Rep. Jami Cate emphasized the importance of holding utility providers accountable for their actions. She expressed frustration over the continuous approval of rate hikes, burdening wildfire victims further. Currently, Pacific Power customers are paying around 50% more for electricity than they did in 2021, significantly surpassing the inflation rate during the same period.
The company has pushed for rate increases citing reasons like inflation, investing in clean energy infrastructure, and heightened insurance costs due to wildfires. Most recently, the rate hike was approved to cover $25 million worth of restoration efforts in the aftermath of the 2020 Labor Day fires. PacifiCorp is collaborating with the federal government to settle the claims, as confirmed by Simon Gutierrez, a company spokesperson.
PacifiCorp was found liable for several fires that ravaged forests during Labor Day 2020, including the Archie Creek fire. The U.S. Attorney General’s Office is seeking reimbursement for expenses related to various fires, amounting to as much as $625 million. Since 2020, PacifiCorp has spent close to $2.7 billion on wildfire lawsuits, with a significant portion dedicated to compensating affected parties from the Archie Creek Fire.
Lawmakers and wildfire victims are urging for quicker resolutions to these cases, accusing Pacific Power of prolonging legal proceedings to the detriment of those impacted. As the power rates continue to rise, impacted communities and Oregonians at large feel increasingly marginalized. Stay tuned as this developing story unfolds during the upcoming legislative sessions.
