On Jan. 9, the Oregon Public Utility Commission announced that Pacific Power, which serves approximately 618,000 customers in Oregon, will increase rates for customers in 2024. New rates account for rising power costs, increased volatility in the Western electricity market and costs for wildfire mitigation actions taken by the company.
Residential customers can expect to see, on average, a 12.9% increase in rates. Single-family residences using the standard 900 kilowatts an hour per month, will see their monthly bills increase by $14.92.
While the increased cost of purchasing power accounted for most of the rising rates, wildfire prevention efforts resulted in a 2.1% overall increase in rates, according to Simon Gutierrez, PacifiCorp’s senior communications specialist. These expenses include anything from grid hardening, installing and replacing equipment to lower the chances of spark and ignitions and vegetation management, removing vegetation from around power lines to prevent interference in high winds.
According to Gutierrez, the rate increase is lower than the nationwide spike in energy prices. “We take our obligation to meet the needs of our customers seriously and understand that a price increase is never welcome news. We are committed to delivering reliable power in an inflationary environment that has pushed power costs higher,” said Gutierrez in an email. “New factors – including extreme weather events and changing economic conditions – are raising the costs of providing electric service.”
In early Dec., PacifiCorp, the parent company of the Oregon electric utility Pacific Power, agreed to pay out $299 million in a settlement agreement with 463 plaintiffs impacted by the 2020 Archie Creek fire in southern Oregon. The lawsuits claimed that by not turning off power to its equipment, Pacific Power helped start or grow the Archie Creek wildfire.
Later that same month, PacifiCorp announced it had reached a $250 million settlement with 10 timber companies to resolve a lawsuit related to the Archie Creek Complex Fire.
“We recognize how difficult it is for families and businesses to adjust to higher bills, and we encourage them to seek out help through energy efficiency programs that reduce usage and rate discount programs to address communities facing high energy burdens,” said Megan Decker, PUC Chair.
