PGE seeks $8 monthly rate hike
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Your electricity bill could jump by an average of $8 a month next year if a rate increase being sought by Portland General Electric gets approved by state regulators.
Why it matters: The potential hike comes as fees, charges and bills continue to pile up, making life in Portland increasingly pricey.
- The utility said the hike is necessary to improve reliability, meet growing demand and replace aging infrastructure.
- Residential electricity rates in Oregon are up by nearly 60% since 2020.
Driving the news: The Public Utilities Commission is asking for the public to comment on the proposal Tuesday at 6pm.
What they're saying: The utility's requests to upgrade some of its infrastructure appear justified, Charlotte Shuff of the consumer advocacy group Oregon Citizens Utility Board, told Axios.
- But PGE is also asking to increase its profits — from 9.34% to 9.75%. That may seem small, but it amounts to millions annually in extra charges to consumers, Shuff said.
- The utility is also asking regulators to approve $236 million from customers over an unspecified number of years for what Shuff said is a vaguely defined "reserve fund."
"When we have our utilities spending money, we need them to justify why they're spending it and what the benefit is," Shuff told Axios.
The other side: The increase in profits was necessary to help "PGE attract the investment needed to fund critical grid infrastructure," spokesperson John Farmer told Axios in an email.
- The reserve fund, Farmer said, was for the early stages of capital projects and customers would only pay for planning work approved by regulators.
By the numbers: The rate increase, which needs approval from the Oregon Public Utility Commission, would push up the average residential customer's bill by about 4%, or $8 a month.
- PGE serves 850,000 households, most of them in and around the Portland area.
- Bigger customers would see bigger increases, with large-load data centers seeing a hike of 7.7%.
If approved, the increase would go into effect next summer.
Catch up quick: PGE's most recent rate increase came in April, a 5% bump that immediately followed a ban on price hikes during the winter months, per the Oregon Capital Chronicle.
- While we've seen big increases in recent years, rates in Oregon still hover around the national average.