Electric bills for many in Salem could go up next year due to a Portland General Electric rate increase — but not as much as the utility provider requested.
The Oregon Public Utility Commission issued a decision Friday approving a rate increase of about 3.3% to take effect Jan. 1. The company serves about 930,000 customers in Oregon.
The approved rate is a marked departure from the 7.4% increase requested by PGE and the upped request of 10.9% made in August.
When combining the general rate increase with other adjustments, overall rates for residential customers will increase by about 5.5% starting next year.
The announcement follows the commission’s decision Thursday approving a rate increase of about 8.5% for Pacific Power customers, cutting the utilities’ proposed rate increase by nearly half.
Commission officials said Friday’s decision significantly reins in the utility’s requested growth in expenses.
“As regulators, our job is to look out for customers,” Oregon Public Utility Commission Chair Megan Decker said. “We know that rate increases are difficult for Oregonians, and we only approve them after independently scrutinizing the facts and concluding that increasing rates is necessary to preserve customers’ long-term interests in safe and reliable utility service.”
PGE rates have increased 40% since 2021. The utility said it made a profit of $228 million in 2023.
There was immediate opposition earlier this year when Portland General Electric asked state regulators for permission to raise its rates by another 7% starting in 2025.
The request came after PGE disconnected a record number of customers in the spring of 2024, the most since it started reporting figures in 2018, according Oregon Public Broadcasting.
Impassioned pleas were made during a May public hearing to not to approve the increase.
The most recent increase, which started Jan. 1, came days before an ice storm hit the Portland metro area and the Willamette Valley. Many people lost power and the rest faced power bills of $300 to $400 for the month, according to those who testified. The 18% increase was the highest rate increase in the past 20 years.
PGE would have generated an additional $202 million a year and said $129 million would go toward projects, while $57 million would be spent on operations and maintenance.
Commissioners, recognizing the impacts of rate increases in winter, adopted protections for the most vulnerable by prohibiting PGE from disconnecting medical certificate holders and bill discount program participants until March 31. The commission said it also will require the company to establish higher bill discounts and offer emergency help on past-due balances to the lowest-income Oregonians.
PGE officials said the increase will support infrastructure investments including a local battery energy storage system designed to improve the availability of renewable energy sources and reduce the need to purchase power from the energy market.
“PGE is working to keep prices as low as possible, knowing that customers depend on the energy we provide every day,” VP Chief Commercial and Customer Officer John McFarland said. “To achieve this, we are making investments in a smarter and stronger energy grid to reduce outages, connect to more carbon-free energy resources and protect against damage from extreme weather and wildfires.”
Report Bill Poehler contributed to this story
For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on X at @wmwoodworth
This article originally appeared on Salem Statesman Journal: Oregon regulators approve PGE rate increase of about 3.3%