The Oregon Public Utility Commission (PUC) issued its decision on Friday in the general rate case filing by Portland General Electric (PGE), approving an increase in general rates for all customer types, including residential, commercial, and industrial customers, of approximately 3.3 percent to take effect on January 1, 2025. This is down from PGE’s original general rate case filing, which requested an increase of 7.4 percent.

When combining the general rate increase with other adjustments, rates overall will increase on January 1 by approximately 6.2 percent. This is due to the combined effect of the general rate case decided Friday, the annual adjustment for power purchase costs, and other year-end rate increases and decreases. For residential customers, the combined impact of the general rate case and all other filings effective January 1 is expected to be an increase of approximately 5.5 percent. Finalized rate changes will come after PUC review of utility compliance filings with the Commission decision and final decisions on other year-end rate filings.

The decision in the general rate case cuts back the increase PGE had requested, significantly reining in PGE’s requested growth in expenses. The resulting 3.3 percent increase in general rates largely reflects the cost of PGE’s capital investments in infrastructure needed to ensure safe and reliable utility service. Power costs, stabilizing after large spikes in prior years, contributed nearly two percent to the overall increase. Other, smaller adjustments representing the changing costs of fees and customer programs, some of which will be finalized in a Commission public meeting on December 31, 2024, also contribute to the January 1, 2025, rate change.

“As regulators, our job is to look out for customers,” said Megan Decker, PUC Chair. “We know that rate increases are difficult for Oregonians, and we only approve them after independently scrutinizing the facts and concluding that increasing rates is necessary to preserve customers’ long-term interests in safe and reliable utility service.”

Portland General Electric Response:

“PGE is working to keep prices as low as possible, knowing that customers depend on the energy we provide every day,” said John McFarland, VP Chief Commercial and Customer Officer. “To achieve this, we are making investments in a smarter and stronger energy grid to reduce outages, connect to more carbon-free energy resources and protect against damage from extreme weather and wildfires.”

The Commission authorized a residential rate increase of 5.5%, the lowest rate change among customer classes. More than half the residential rate change consists of the result of increased power costs (1.9%) and an increase to mandated funding of the Energy Trust of Oregon (1.1%). The remaining 2.5% of the residential rate increase is for capital investments for infrastructure upgrades to modernize and secure the power grid.

Calculations of 2025 rates for each customer class will be finalized in a required PGE compliance filing with the Commission next week.

The Commission's decision approved an expected revenue requirement increase of $98 million, which is approximately 54% recovery from PGE’s final open brief filing of $182 million. The final order approved a capital structure of 50% debt and 50% equity and a return on equity (ROE) of 9.34%.

PGE is evaluating the full impact of the order, which includes decisions on certain items related to operating and maintenance costs, PGE’s fleet electrification and the Clearwater Wind Energy Center. As the Commission invited in its decision, PGE will submit a new filing to recover investments in the Seaside battery project with expedited review. PGE remains committed to customer affordability, carefully managing its cost structure and deploying resources for high-impact investments that provide maximum benefits to all stakeholders.

In its decision, the Commission noted it is not aware of significant influence from large user demand growth in the adopted rate changes for 2025. In a separate filing with the Commission today, PGE filed a proposal (UE 430) to strengthen protections for residential and small business customers and fairly allocate the cost and risk of serving large amounts of electricity to new industrial customers. The proposal includes securing up-front payments and requiring long-term contractual commitments and exit fees, among other measures. These will help pay for system investments while giving new industrial ‘large load’ customers greater clarity about the cost and timing for the energy they are seeking.

The rate review and approval process administered by the OPUC is an open, transparent public regulatory proceeding. Over the 11 months of the process, PGE provided nearly 2,000 pages of written testimony and responded to approximately 1,120 commission data requests and engaged with multiple intervenor groups.

PGE is committed to helping customers access the energy they need. PGE has worked with the Commission and customer advocates to expand customer protections. PGE will suspend any disconnection for income-qualified bill discount (IQBD) customers and customers with medical certificates through March 31, 2025. In addition, PGE is forgiving up to $1000 past-due balances for the company's most vulnerable, lowest-income IQBD customers, and expanding cold-weather disconnection protections for all customers.

Rising prices are a challenge for many customers and PGE is committed to helping customers access the energy they need. The company offers a variety of tools that help customers take control of their energy, such as usage dashboards, rebates, and incentives for energy efficiency. PGE continues to work to increase enrollment in its Income-Qualified Bill Discount program (IQBD) and offers a variety of assistance and resources for customers in need.

To learn more about energy assistance, cost savings programs or tools to help manage your bill, visit portlandgeneral.com/save-money or portlandgeneral.com/help/resources