Electricity Costs In Oregon Are Set To Increase In 2023

Electricity Costs In Oregon: Inflation in the cost of generating electricity is a major factor in the 2023 rate increase that will be implemented by both Portland General Electric and Pacific Power. Price hikes for PGE and Pacific Power were approved by the Oregon Public Utility Commission due to the companies’ higher year-over-year costs for generating and acquiring power.

Electricity Costs In Oregon Are Set To Increase In 2023

Beginning on January 1, 2023, the new rules will be in place.

PGE customers with 780 kWh/month use should expect an increase in their monthly payment from $114.54 to $122.60, or around 7%. Monthly prices for 900-kilowatt-hour users of Pacific Power will rise from $91.89 to $111.34, a 15% increase.

PGE serves around 2 million people in Oregon, with 900,000 of those being customers. PGE’s service region covers 51 communities.

Read More:-

Megan Decker, Chair of the Oregon PUC, acknowledged the difficulties raised by the increase in rates at a time of high inflation for Oregonians. Utilities’ costs to produce and acquire power are determined by factors such as fuel price rises, supply chain delays due to global events, and rising volatility in regional electricity markets. There may be solutions for home consumers to assist mitigate the financial burden of these price increases, even if the utilities themselves can’t prevent all of the effects in the near term.

Electricity Costs In Oregon Are Set To Increase In 2023
Electricity Costs In Oregon Are Set To Increase In 2023

PGE has just introduced a bill reduction program for clients who qualify based on their income.

Pacific Power Statements

“We take our obligation to meet the needs of our customers seriously and understand that a price increase is never welcome news. It is our responsibility to help customers understand their bills and why prices are increasing.”

“We are committed to delivering reliable power in an inflationary environment that has pushed power costs higher. New factors – including extreme weather events and changing economic conditions – are raising the costs of providing electric service. Natural gas prices have risen 44% in the past year, while power costs have increased 72%.”

“Alongside these price increases, Pacific Power has reached settlements in regulatory proceedings that will see customer bills rise by an average of 15% over 2022 levels starting January 1, 2023. To lessen the impact of rate increases on customers during the heating season, we’re delaying an additional 1.9% rate increase until April 1, 2023.”

“Despite these inflationary pressures, Pacific Power is actively managing our system to offset costs. The upcoming rate increase is lower than the nationwide spike in energy prices because of our continued efforts to integrate low-cost renewables in our diverse resource portfolio and participate in markets with other suppliers to buy energy at the lowest possible price.”

Read More:-

Three regulatory agreements are to blame for the forthcoming price hike:

  • As part of the Transition Adjustment Mechanism (TAM), Pacific Electricity submits an annual report that includes an adjusted estimate of its power costs through 2023. The yearly power projection of the corporation has grown because of the growing prices of obtaining electricity. As a result of the agreement, the cost of electricity in Oregon will rise by 11.1% compared to 2022 prices.
  • The settlement reached in Pacific Power’s General Rate Case (GRC) requires the company to make further efforts in fire prevention and vegetation control. As of January 1, 2023, consumers should expect an average 3.7% rate rise above 2022 levels to help pay for these expenditures. Following the initial rise, on April 1, 2023, a further 0.8% increase will take effect.
  • After April 1, 2023, customers of Pacific Power will see an average 1.1% increase in their monthly bills due to the company’s Power Cost Adjustment Mechanism (PCAM). The planned hike reflects an increase in the cost of purchasing electricity off the market in 2021, a year affected by extreme weather events including the summer heat dome, the February ice storm, and the ongoing consequences of dry conditions that have curtailed hydropower output.

You can visit focushillsboro.com for the latest information and news. If you have any queries or suggestions can put them in our comment section.

About The Author

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top