CUB Supports the Fair Energy Act (HB 3179)
Posted on January 30, 2025 by Charlotte Shuff
Tags, Energy, General Interest
Editor’s Note: Several amendments have been added to the FAIR Energy Act (HB 3179) as it has moved through the legislative process. CUB fully supports these amendments and stands by their intent to address Oregon’s energy affordability crisis. You can view those amendments here.
CUB is proud to support HB 3179: The FAIR Energy Act in the 2025 Oregon legislative session. Too many people are struggling to pay their energy bills. Oregon’s largest for-profit utilities have raised billing rates by nearly 50% since 2021 for residential customers. This bill aims to make energy bills more affordable, reduce the number of bill increases, and make utility costs more transparent for customers.
This bill is being supported by CUB along with our partners Verde, Oregon Just Transition Alliance, and Community Energy Project.
Fairness & Affordability in Residential (FAIR) Energy Act
The strategies we have to address energy affordability are not working. While some assistance programs are available, these programs alone are not enough to keep up with the needs of utility customers. We know state and federal assistance programs are overburdened and underfunded. While these, along with utility bill discount programs, are crucial tools to help households, Oregon needs to fix the systems that make these programs necessary.
The FAIR Energy Act (HB 3179) empowers state regulators to set energy billing rates at the lowest possible level, so families can better avoid big increases in energy bills. The bill also will move any increases out of winter, when energy usage is highest. Utilities will also have more flexibility to use low-cost financing for important investments in the energy grid to keep customer impacts low. Additionally, the bill will increase transparency so that customers know what they are paying for and what to expect from any changes in energy bills.
Affordable Energy Bills
The FAIR Energy Act (HB 3179) empowers state regulators to set energy billing rates at the lowest possible level, so families can better avoid big increases in energy bills. Utilities will also have more flexibility to use low-cost financing for important investments in the energy grid to keep customer impacts low.
Fewer Bill Increases
The FAIR Energy Act (HB 3179) will limit how often utilities can raise rates, preventing new increases for at least 18 months. This bill will also move any increases out of winter when energy usage is highest. Utilities will no longer be able to raise billing rates from November 1 to March 31. By considering people’s ability to pay bills, more families could avoid being shut off.
Transparency in Utility Spending
The FAIR Energy Act (HB 3179) will increase transparency so that households know what they are paying for and what to expect from any changes in energy bills. Utilities will have to inform customers of what they are paying for, published by category (investments, fuel prices, etc.). Utilities will also have to publish quarterly any rate changes customers can expect in the next year.
What’s in House Bill 3179?
The FAIR Energy Act (HB 3179) sets new requirements for Oregon’s for-profit energy utilities and the state’s utility regulator, the Oregon Public Utility Commission.
New Requirements for Energy Utilities:
- Prohibition on winter rate increases from November 1 to March 31
- Must wait 18 months after a bill increase to add new major rate hikes
- Inform customers what they are paying for published by category (investments, fuel prices, etc.)
- Publish rate changes customers can expect over the next year, quarterly by major customer type
Empowering Regulators at the Oregon Public Utility Commission:
- Authority to set the lowest rates possible for customers of for-profit utilities
- Ability to consider household economic conditions in rates (e.g. unemployment or disconnections)
- More options for using low-interest financing for necessary utility infrastructure (called securitization)
- Expanding time to consider major rate increases to 13 months (currently 10 months)
- Power to determine when new rates go into effect for customers (take that out of utilities’ control)
Other Upcoming Legislation on Affordable Energy
Energy Affordability is CUB’s number one priority for the 2025 Oregon legislative session. We are working on addressing this issue with a wide range of solutions across many bills. All of these bills work together to stop the energy affordability crisis facing Oregonians.
Learn more about CUB’s other legislative priorities!
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04/03/25 | 2 Comments | CUB Supports the Fair Energy Act (HB 3179)