Residential customers with Pacific Power will see almost a 10% increase on their electric bill starting January 1st. The utility said for the average homeowner, that translates to around an extra $14 per month.
Claire Valentine-Fossum is a staff attorney with the Oregon Citizens Utility Board, a non-profit that advocates for lower rates. She said it’s disappointing that the Public Utility Commission denied their proposal to delay the rate increase until the weather gets warmer.
“Typically the utilities request January 1 because it’s in the winter heating season and it looks really good for their shareholders if they can show a large revenue in the winter," she said.
Valentine-Fossum added that while the average increase might be $14, that number could be higher for people who heat their homes with electricity.
A rate increase cap was also supported by the Public Utility Commission's own staff. , it said that commission staff recommended a threshold of 8%, to act as an affordability checkpoint.
"Staff’s threshold would require the Commission to consider mechanisms to mitigate rate pressure on customers when it approves a rate increase above that threshold," the report said.
But the commission rejected a cap altogether. In their decision, the Commission said it would be too complicated to implement a delay for rate increases.
"In light of the pressing need to make decisions that balance affordability, reliability and safety in utility services we are centering strategies for addressing rate shock and other affordability issues on those most likely to experience their worst outcomes," said the commission.
There were also some wins for consumers, said Valentine-Fossum. That includes up to an 80% discount for the lowest-income customers and protections that ensure large data centers don’t increase energy costs for everyone else. The utility will also be prohibited from disconnecting power to the most-vulnerable Oregonians through April 1.
The commission also required that shareholders of PacificCorp, the parent company of Pacific Power, will be required to cover 10% of the costs of premiums for the company's liability insurance. The utility's premiums have risen because of wildfire related lawsuits.
In a statement, Pacific Power said, "We remain steadfast in our commitment to our customers and our communities and will continue seeking new ways to reduce impacts to customer bills and provide assistance to our most vulnerable customers."
