Oregon’s Energy Affordability Solutions

Too many of us are experiencing the challenge of energy affordability here in Oregon. PGE and Pacific Power, which provide power to most Oregonians, have raised rates by nearly 50% since 2021. NW Natural, our largest gas utility, has raised billing rates 40% since 2021, with more increases on the way this fall.

In 2024 alone, all of Oregon’s for-profit utilities disconnected nearly 70,000 Oregon households from power and heat, including thousands of known low-income households receiving assistance. These are families forced to choose between keeping the lights on and meeting other needs.

The Oregon legislature has the opportunity to rise to meet this challenge this year with a suite of energy affordability solutions that all work together. Oregonians need lawmakers to reach for every tool in the toolbox to address rising costs and better ensure energy security for Oregon families.

2025 Oregon Legislative Package: Energy Affordability & Resilience

State legislators are considering a suite of bills this year that all aim to address energy affordability and resilience for Oregonians. These bills all work together to reduce energy costs by reforming utility regulation, removing unnecessary costs, and building community resilience through energy savings and emergency relief.

CUB is proud to join the Building Resilience Coalition in supporting the following bills:

• FAIR Energy Act (HB 3179)
• Performance Based Ratemaking (SB 688)
• POWER Act (HB 3546)
• Get the Junk Out of Rates (SB 88)
• One Stop Shop 2.0 (HB 3081)
• Rental Home Heat Pump Program (ODOE) $30M - budget request
• Community Heat Pump Deployment (ODOE) $15M - budget request
• Oregon Energy Assistance Program (HB 3792)
• Community Resilience Hubs (ODHS) $10M (HB 3170)

Reforming Utility Regulation

Our current model of regulating our for-profit utilities isn’t working. Utilities are asking customers for more money more often, while still missing the mark on keeping us safe from wildfires and reducing emissions. We need to center customers in how we regulate our utilities.

FAIR Energy Act (HB 3179) and Performance Based Ratemaking (SB 688) tackle reforming our utility regulation in different but intertwined ways. HB 3179 addresses the process: when utilities can ask for increases in billing rates, when customers can see changes in their bills, and asks regulators to consider other household economic factors in decisions. SB 688 tackles the incentives: allowing regulators to explore tying utility financial incentives to things like affordability, emissions reductions, wildfire mitigation, and more.

Reforming Utility Regulation

We expect our power bills to go toward only the costs necessary to provide us with gas and electricity. But right now, we are paying for added costs that go toward benefiting companies, not our families.

The POWER Act (HB 3546) and Get the Junk Out of Rates (SB 88) both aim to take out unnecessary costs that drive up our power bills. HB 3546 removes costs associated with data centers and cryptocurrency, ensuring that we are not subsidizing big tech. In the past few years, PGE alone has spent $210 mil just on local transmission for data centers. SB 88 prevents utilities from adding self-serving costs to customers’ bills, like legal fees from lawsuits. It also takes out the costs of pushing utility agendas in policy, like lobbying and industry association dues.

Reforming Utility Regulation

Energy Savings Every Month
Energy efficiency is the best way for households to save money. By funding programs that make it easier to reduce your home energy use through efficient appliances and weatherization, we can cut home energy bills every month.

Funding energy efficiency programs:

• Community Heat Pump Deployment (ODOE) $15M
• Rental Home Heat Pump Program (ODOE) $30M
• One Stop Shop 2.0 (HB 3081)

Emergency Relief
When disaster strikes – financial or natural – we need to be prepared. Staying connected to power is critical for staying safe, healthy, and connected.

Oregon Energy Assistance Program (HB 3792) helps Oregonians avoid losing power from a disconnection when they get behind on their bills. Community Resilience Hubs (ODHS) $10M (HB 3170) helps communities stay connected during a natural disaster so everyone has heating, cooling, and safe air to breathe.

More About the Bills in the Energy Affordability & Resilience Package

FAIR Energy Act (HB 3179)
We must change the priorities of for-profit utilities and regulators to center consumer affordability and transparency in rates. This bill allows regulators to move bill increases out of the winter months, provide transparency on where customer money is spent, and consider customer impacts when raising billing rates.

Performance Based Ratemaking (SB 688)
Currently, utilities make capital investments (aka building stuff) as their primary means of turning a profit. We have better options. This bill is a first step toward modernizing ratemaking and improving the incentives for utilities to invest in and profit from better performance in areas like reliability, energy efficiency, clean energy, and lower customer bills.

POWER Act (HB 3546)
Demand for energy is growing rapidly in Oregon, mainly from data centers and other big tech. This strain on our energy system from large users is driving up costs for everyone. This bill will make it so that large power users can be fairly charged for their expenses, and other utility customers are not unfairly on the hook.

Get the Junk Out of Rates (SB 88)
It makes sense to pay for the power we use and for efficiency, infrastructure, and service costs. But expensive lobbyists and industry association fees should come out of utility company profits and not our pockets. This bill will put the responsibility back on the utilities to justify their costs with bright lines against marketing, political activity, and other expenses.

One Stop Shop 2.0 (HB 3081)
We need help navigating hundreds of different incentives and cash rebates for upgrades like energy-efficient heat pumps, better insulation, and sturdier doors and windows,  bringing down energy bills long term. This bill expands support so Oregonians will get direct assistance from their part of the state to make their home projects more affordable.

Rental Home Heat Pump Program (ODOE) $30M
This is an incentive program for landlords to upgrade to energy-efficient heat pumps. Tenants enjoy lower energy bills and more comfort. The program is out of funding and needs reinvestment.

Community Heat Pump Deployment (ODOE) $15M
This is an incentive program for low- & middle-income homeowners to upgrade to energy-efficient heat pumps, which provide affordable heat and cooling. This program needs reinvestment.

Oregon Energy Assistance Program (HB 3792)
As utility bills have gone up, energy assistance programs for low-income customers haven’t kept up, leading to rising shutoffs for those who can least afford it. This bill slightly raises the amount collected from PGE and Pacific Power customers to double the assistance fund, from $20 mil to $40 mil a year. This will help more Oregonians avoid disconnection.

Community Resilience Hubs (ODHS) $10M (HB 3170)
No Oregon community is safe from disasters. Community resilience hubs provide rural and frontline communities with dependable heat and cooling, power, air filtration, and emergency response.

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