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Next Steps for the FAIR Energy Act (HB 3179)

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Last year, CUB did something we’ve never done before. We took the lead on four energy affordability bills during Oregon’s legislative session—and we passed all of them! Among those big victories, the FAIR Energy Act (HB 3179) was passed to rein in energy bill rate hikes, addressing one of the root causes of Oregon’s energy affordability crisis.

Now, regulators at the Public Utility Commission (PUC) have begun to implement the FAIR Energy Act. Over the next 18 months, regulators will develop new rules and processes for when and how utilities can request rate increases. Our staff is deeply involved in this process and is working hard to ensure the new law is rolled out fairly. Read on to learn about what’s next for the FAIR Energy Act.

FAIR Energy Act Implementation

HB 3179 requires energy rate increase requests to be spread out to at least every 3 years by 2027, with added customer protections before next year. It also prevents increases in home energy rates during peak winter months, when energy usage and bills are highest. And it increases transparency so consumers know what they are paying for and what to expect from any proposed changes to energy bills.

Together, we can expect these changes to slow the pace of energy bill hikes and help customers be more prepared for future increases.

Multiple Stages to Making FAIR Energy a Reality

Last Fall, regulators at the Public Utility Commission opened four dockets as part of its process to roll out the FAIR Energy Act over multiple stages. The five main components include:

  • Building frameworks for required multi-year plans for rate increases
  • Set a schedule for when utilities can request major bill increases
  • Banning winter rate increases for home customers
  • Customer impact analysis
  • Utility reporting expectations (bill increases and what costs are causing rates to go up)

Regulators plan to accomplish the big goals set out in this process by mid-2027.

Setting Customer-Facing Reporting Details & Expectations (Docket UM 2405)

Big Goals: Set expectations for utilities on how public reporting for bill increases should look and what needs to be included.
Timeline: Expected end of March 2027

Regulators have opened a policy investigation, which has three phases. It will ensure that utilities, stakeholders, and the regulator are on the same page when it comes to how the reporting requirements utilities now have will look to customers and advocates. CUB and our partners will work hard to make sure that this reporting for you is easily accessible and understandable.

See the full docket! Docket UM 2405 is available on the Public Utility Commission website.

Writing the Rules for Utilities

Regulators will use three rulemaking processes to address some of the most pressing issues with implementing the FAIR Energy Act.

Multi-Year Rate Plan Framework (Docket AR 676)

Big Goal: Spacing out gas and electric rate increase requests to at least every three years.
Timeline:Mid 2027

Regulators opened a process to develop the specific rules for spreading out utility rate increase requests to at least every three years by 2027. The goal of developing this process is to lessen the frequency and number of times utilities raise customers’ energy bills. They will also stagger when gas and electric utilities can ask for more, so customers aren’t hit with two energy bill increases in one year.

In the past, it was uncommon for utilities to ask for big bill increases every year. But now, it’s become standard for utilities to make requests most years. These rules will help slow down the pace of requests, protecting your home energy bills. Utilities can also request approval for smaller rate increases as needed for one-off or specific programs. Before the FAIR Energy Act passed, utilities were asking for more one-off requests, more often, making it difficult to track how much energy bills increased year over year.

With these rules, regulators can better control when rate increases happen. Right now, utilities choose when they want to ask regulators to change billing rates, and regulators have to respond. The longer process not only protects customers from frequent increases but also allows regulators and advocates to dig deeper into what utilities are asking for in their requests.

The FAIR Energy Act allows utilities to ask for an exception, mainly for emergencies or other unforeseen catastrophic events. CUB expects that a set schedule will lessen the financial impacts on customers.

See the full docket! Docket AR 676 is available on the Public Utility Commission website.

2026-2027 Bill Increase Request Schedule & Exceptions (AR 677)

Big Goal: Create a process for bill increases before the multi-year rate plan rules go into effect in 2027.
Timeline: End of April 2026

Last year, regulators started work on setting an initial schedule for how and when utilities can request to increase rates between now and 2027. This is happening while regulators develop the permanent multiyear plan rules, which will go into effect in 2027.

This process will set a schedule for utilities to spread out bill increase requests. Regulators will prevent multiple utilities from asking for increases at the same time. Spreading it out benefits regulators, energy advocates, and customers. The rules established in this process will directly inform and enhance the rulemaking to establish a long-term ratemaking framework.

On December 17, 2025, the Commission held a workshop with advocates to get the ball rolling on developing the interim rate case schedule. Based on that conversation, regulators published a draft for setting this rate schedule and exception process. The Commission is set to decide that schedule by the end of March 2026.

See the full docket! Docket AR 677 is available on the Public Utility Commission website.

AR 678 – Winter Moratorium & Reporting Rules

Big Goals: Set simple rules banning utilities from raising energy bills in the winter. Develop rules for how utilities report upcoming rate increases to the public.
Timeline: Expected end of March 2026

Lastly, regulators opened a process to develop rules for the winter ban on rate increases from November 1 to March 31. This docket also covers annual reporting by utilities and studying costs associated with rate increases. Moving the bill increases out of winter, when energy usage is highest, helps customers stay connected to life-saving power during winter weather.

For reporting, CUB, along with other energy justice advocates, asked regulators to approve additional customer protections in the rules. Our suggestions included more disconnection data, trends in past-due bills, and expected utility profits. Unfortunately, regulators moved forward without adopting our recommendations.

CUB will keep pushing for affordable energy bills to be a top priority throughout these conversations. Regulators need to consider the whole picture, including the cost of living and rising disconnection rates, when considering utility requests.

See the full docket! Docket AR 678 is available on the Public Utility Commission website.

Next Steps

Over the next 18 months, the Oregon Public Utility Commission will transition the FAIR Energy Act from law into practice. This implementation phase is critical because it will impact how rate increases are handled for years to come.

CUB will continue working towards affordability and transparency throughout this process.

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03/12/26  |  0 Comments  |  Next Steps for the FAIR Energy Act (HB 3179)

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