PGE rate hikes: Oregon regulators say they can’t dismiss increase request
The Oregon Public Utility Commission declined to dismiss Portland General Electric’s newest rate increase proposal, rejecting a motion filed by a state nonprofit group that advocates for utility customers.The decision Thursday means PGE’s proposed 7.5% increase will go through the regular lengthy rate-setting process.The increase likely would go into effect next January if approved – though the utility may file for other increases later this year.The Oregon Citizens’ Utility Board had asked the commission to throw out PGE’s rate request, saying people are reeling from record high bills. It’s the first time the board has made such a request.PGE increased rates for its electricity by 18% on Jan. 1 and 12% in January 2023.Under Oregon law, a regulated utility may file a proposal to change general rates at any time. Typically, the Public Utilities Commission conducts an investigation that can take up to a year to determine if rate changes are warranted. Various parties, including the Oregon Citizens’ Utility Board, participate in these cases.The Public Utilities Commission said it did not have the legal authority to dismiss the utility’s latest rate increase proposal.The commission also said throwing out a rate filing undermines the integrity of its rate-setting mechanism and commission deliberations.“A reactive decision could erode the value of the long-established, evidence-based process for consideration of requests for rate adjustments,” the commission said.Bob Jenks, executive director of the Citizens Utility Board, said his group was disappointed with the decision.“We think there is a big problem with PGE. It is operating under an ‘all of the above’ business model,” said Jenks, referring to PGE’s strategy to invest in an array of technologies from wind farms to battery storage to decarbonize its system and meet ambitious state mandates. Oregon requires PGE to reduce its carbon emissions by 80% by 2030 and by 100% by 2040.“Strategy involves identifying the best way to deploy your resources,” Jenks told The Oregonian/OregonLive. “It requires prioritization. PGE acts as if everything is an investment opportunity and their customers have unlimited wallets.”PGE spokesperson Drew Hanson said PGE “will continue to be fully engaged in the public rate review process administered by the Oregon Public Utility Commission.”The governor-appointed three-person Public Utilities Commission evaluates costs – such as operating and maintenance expenses, asset depreciation and cost of capital – and expected revenues, then determines rates that allow for “prudent and reasonable costs” to be recovered from customers, according to state law.Typically, said Jenks, the commission approves rates at a lower level than what utilities request. But, he added, PGE has filed multiple rate increase proposals in recent years for power costs, renewable energy projects, electric vehicles, wildfire mitigation, storm recovery and energy efficiency among others and they add up throughout the year.Rate changes usually go into effect in the middle of winter when energy costs are already high, so the increase hits harder, Jenks said.The public can comment on PGE’s latest increase proposal at a virtual event on May 16, via an online form or by emailing the commission at PUC.PublicComments@puc.oregon.gov. Comments must include the docket number, UE 435.— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.
The Oregon Public Utility Commission declined to dismiss Portland General Electric’s newest rate increase proposal, rejecting a motion filed by a state nonprofit group that advocates for utility customers.
The Oregon Public Utility Commission declined to dismiss Portland General Electric’s newest rate increase proposal, rejecting a motion filed by a state nonprofit group that advocates for utility customers.
The decision Thursday means PGE’s proposed 7.5% increase will go through the regular lengthy rate-setting process.
The increase likely would go into effect next January if approved – though the utility may file for other increases later this year.
The Oregon Citizens’ Utility Board had asked the commission to throw out PGE’s rate request, saying people are reeling from record high bills. It’s the first time the board has made such a request.
PGE increased rates for its electricity by 18% on Jan. 1 and 12% in January 2023.
Under Oregon law, a regulated utility may file a proposal to change general rates at any time. Typically, the Public Utilities Commission conducts an investigation that can take up to a year to determine if rate changes are warranted. Various parties, including the Oregon Citizens’ Utility Board, participate in these cases.
The Public Utilities Commission said it did not have the legal authority to dismiss the utility’s latest rate increase proposal.
The commission also said throwing out a rate filing undermines the integrity of its rate-setting mechanism and commission deliberations.
“A reactive decision could erode the value of the long-established, evidence-based process for consideration of requests for rate adjustments,” the commission said.
Bob Jenks, executive director of the Citizens Utility Board, said his group was disappointed with the decision.
“We think there is a big problem with PGE. It is operating under an ‘all of the above’ business model,” said Jenks, referring to PGE’s strategy to invest in an array of technologies from wind farms to battery storage to decarbonize its system and meet ambitious state mandates. Oregon requires PGE to reduce its carbon emissions by 80% by 2030 and by 100% by 2040.
“Strategy involves identifying the best way to deploy your resources,” Jenks told The Oregonian/OregonLive. “It requires prioritization. PGE acts as if everything is an investment opportunity and their customers have unlimited wallets.”
PGE spokesperson Drew Hanson said PGE “will continue to be fully engaged in the public rate review process administered by the Oregon Public Utility Commission.”
The governor-appointed three-person Public Utilities Commission evaluates costs – such as operating and maintenance expenses, asset depreciation and cost of capital – and expected revenues, then determines rates that allow for “prudent and reasonable costs” to be recovered from customers, according to state law.
Typically, said Jenks, the commission approves rates at a lower level than what utilities request. But, he added, PGE has filed multiple rate increase proposals in recent years for power costs, renewable energy projects, electric vehicles, wildfire mitigation, storm recovery and energy efficiency among others and they add up throughout the year.
Rate changes usually go into effect in the middle of winter when energy costs are already high, so the increase hits harder, Jenks said.
The public can comment on PGE’s latest increase proposal at a virtual event on May 16, via an online form or by emailing the commission at PUC.PublicComments@puc.oregon.gov. Comments must include the docket number, UE 435.
— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.