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Portland General Electric's 2025 Rate Review Decision

On December 20, 2024, Portland General Electric (PGE) welcomed the decision made by the Oregon Public Utility Commission (OPUC) regarding its 2025 rate review. This review, initiated in February 2024, has initiated a range of rate increases based on customer type, set to take effect on January 1, 2025. The changes will see rate adjustments ranging from 5.5% for residential customers to 7.7% for some commercial users, aimed at supporting essential infrastructure investments and enhancing reliability for all customers.

Key Highlights of the Rate Change

The decision reflects the necessity of investing in battery storage systems and modernizing transmission infrastructure, with the goal of improving reliability for customers. According to John McFarland, the VP Chief Commercial and Customer Officer of PGE, these investments are crucial for maintaining affordable energy prices while ensuring a transition toward renewable energy sources.

The breakdown of the anticipated rate increases is as follows:

• - Residential Customers: A total increase of 5.5%, influenced largely by increased power costs and funding mandated for the Energy Trust of Oregon.
• - Commercial Customers: A rise of 7.5%, taking into account a base structure, power costs, and additional factors.
• - Industrial Customers: An estimated increase of 6.0%.

The overall change aligns with PGE's commitment to reducing electric outages and integrating more carbon-free resources into their supply chain, which is particularly important in the face of extreme weather patterns and wildfire risks.

Strategic Investments for the Future

The OPUC's decision to approve an approximate revenue requirement increase of $98 million enables PGE to move forward with significant capital improvements and maintenance activities across its service areas. This includes investments designed to modernize poles, wires, and technology to enhance customer service reliability. Specifically, PGE will focus on projects like the Seaside battery project, which aims to improve access to renewable energy sources.

Furthermore, PGE has been looking into its impact on customers. The commission reiterated that there have been no considerable influences from large user demand in the adopted changes for 2025. Beyond adjusting rates, PGE is also striving to enhance protections for both residential and small business customers, ensuring that costs and risks associated with new industrial users are allocated fairly.

Customer Support Initiatives

PGE is committed to supporting its customers amid rising utility costs. In light of current economic conditions, the company has suspended disconnections for its income-qualified customers and those with medical certifications through until March 31, 2025. Additionally, it is offering to forgive up to $1,000 of past-due balances for its most vulnerable customers and has expanded cold-weather disconnection protections.

The utility company is also actively involved in promoting energy efficiency, providing customers access to various tools such as usage dashboards to track energy consumption and rebates for adopting energy-saving measures. Programs are particularly aimed at increasing participation in its Income-Qualified Bill Discount (IQBD) initiatives, ensuring that help is accessible to those in need.

Looking Ahead

While navigating the challenges presented by rising operational costs and shifting energy demands, Portland General Electric remains steadfast in its mission to deliver safe, affordable, and reliable power to its over 930,000 customers throughout Oregon. With a strategic focus on innovation and the deployment of renewable energy resources, PGE strives to stay ahead of evolving customer needs, ensuring that its energy provision is aligned with sustainability goals for the future.

To learn more about energy assistance programs, cost-saving options, or managing your electricity bill, customers can visit portlandgeneral.com/save-money or access further information from the Oregon Public Utility Commission at Oregon.gov/PUC.

About Portland General Electric

Portland General Electric (NYSE: POR) has been providing electricity services to residences and businesses for over 130 years, gaining recognition for its efforts in renewable energy and community support initiatives. As it moves toward ambitious emission reduction targets, PGE continues to solidify its commitment to delivering superior customer experiences and reliable service.