Pacific Power Customers to See Higher Bills January 1
Posted on December 19, 2024 by Charlotte Shuff
Tags, Press Releases
FOR IMMEDIATE RELEASE December 19, 2024
Pacific Power Customers to See Higher Bills January 1
Regulators rejected rate increase cap by consumer advocate Oregon Citizens’ Utility Board, ruling to increase billing rates by nearly 10 percent with some additional protections.
Pacific Power households will see billing rates go up nearly 10 percent on January 1, 2025. Despite customer outcry this year and advocate requests to cap rate increases, regulators have decided to allow the utility to raise bills again next year.
In Thursday’s ruling, regulators reduced the bill increase from Pacific Power’s originally filed request of 21.6 percent and declined to raise profit margins for the utility. The January increase will be a combination of multiple rulings. This marks a nearly 50 percent increase since 2021.
Utility watchdog, Oregon Citizens’ Utility Board (CUB), asked for a 10 percent cap on utility rate increases to slow Oregon’s rising energy affordability crisis. Regulators rejected this proposal, indicating that it would be too difficult to implement. Instead, new temporary rules will pause shut-offs for the most vulnerable customers this winter with permanent rules coming next spring.
“This year, Pacific Power shut off more Oregon families than ever recorded because bills were unaffordable,” said Bob Jenks, Executive Director of Oregon Citizens’ Utility Board. “We need strong, lasting protections to make sure no one goes without heating, refrigeration, or medical devices. We cannot have our essential services, like electricity, rising to luxury prices.”
Pacific Power disconnected the largest number of customers in 2024 since reporting began. Regulators approved additional protections for the lowest-income customers. A family of four making $5,899 or below can access an 80 percent bill discount each month. Any customer enrolled in a discount program or with a medical certificate will be protected from disconnection between December 1, 2024 and April 1, 2025.
In a win for residential customers, the Commission added new protections from rising bills due to large-load customers like data centers. As AI and cloud storage industries have boomed in Oregon, utilities have to meet the rapidly growing energy demand. When utilities cannot predict that demand, it can cause large costs for Oregon families. Now, new large industrial customers must forecast their energy needs for the year with 95 percent accuracy or pay a penalty.
The biggest reduction in the case comes from Pacific Power pulling a controversial wildfire fund. Regulators still approved half of the requested $50.4 million for wildfire restoration over the next three years. There will be an investigation to determine if the remaining cost is reasonable.
About the Oregon Citizens’ Utility Board (Oregon CUB):
Oregon CUB is an independent 501(c)3 nonprofit established by initiative process to represent the interests of Oregon’s residential utility customers. CUB advocates for customers by working to develop energy systems that are affordable, accessible, reliable, and clean, and ensure telecommunications policies that support universal broadband access.
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MEDIA CONTACT:
Charlotte Shuff
Oregon Citizens’ Utility Board
503.719.8744 | .(JavaScript must be enabled to view this email address)
