Utilities 101: Utility Rates and Your Energy Bill
Posted on August 11, 2022 by Charlotte Shuff and Mike Goetz
Tags, Oregon Utilities 101, Energy, General Interest
Here at CUB, we talk a lot about utility rates. Most Oregonians only care about what they see: how much their home’s energy will cost each month. Rates, the cost per unit of energy, are set by the Public Utility Commission (PUC) and determine the total amount that shows up on a monthly energy bill.
In this blog, we will discuss utility rates, how they’re decided, and ways to get involved in decision-making that impacts your household’s budget. This blog will only cover utility rates in for-profit utilities, which are regulated by the state.
Basics on Utility Rates
A utility rate is how much your energy provider charges for the energy you use (measured in kilowatt-hour (kWh)). This rate is typically measured in cost per kWh. If you look at your bill, most line items will include a $/kWh.
Read more about how to read your bill on the CUB Blog:
How are Utility Rates Decided?
While your energy usage (kWh) might change each month, the rate ($) changes much less often. Every few years, utility companies request new rates to cover increased costs. These costs can include anything that is essential for delivering utility services. This could include equipment (power lines, gas pipelines, power plants), employee salaries, office buildings, as well as some amount of advertising to promote programs for customers and safety information.
After utilities ask for a rate increase, regulators and customer advocates start an almost year-long process. Advocates include a few groups, like CUB, who are pushing back to keep bills lower for customers. Rates are ultimately decided by utility regulators, the Public Utility Commission (PUC). Their role is to set a rate that balances the interests of the utility and customers.
How Can I Get Involved?
While a lot of the process happens with lawyers and a lot of confidential information, the public does have an opportunity to weigh in.
Relatively early in the process, the Public Utility Commission (PUC) will host a Public Comment Hearing. These meetings are open to the public to provide comments in person, as well as by phone, email, or physical mail. You can find all upcoming meetings at the PUC website.
CUB also publishes Action Alerts on our website and sends information to our email list when there are upcoming opportunities to provide comments. You can sign up for our email list to get up-to-date information.
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06/30/23 | 0 Comments | Utilities 101: Utility Rates and Your Energy Bill