December 30, 2022 1:30 p.m.
The Oregon Public Utility Commission recently finalized rate increases for Pacific Power customers effective January 1st.
Officials with PacifiCorp, the parent company of Pacific Power, said Thursday that the increase is due to a combination of an annual adjustment for power costs, which are markedly higher due to market volatility, and a general rate case filing for non-energy related costs, including wildfire risk mitigation.
The move will result in an average overall rate increase of 14.8% for customers.
A typical residential customer using about 900 kilowatt hours per month can expect monthly bills to increase from roughly $92 to approximately $111.
The impact of the increase will vary depending on actual energy usage for residential, commercial, and industrial customer types.
Significant increases in Pacific Power’s expected cost to purchase and produce electricity in 2023 are a primary driver of the increase, based on forecasts for both the higher cost of natural gas and coal to produce electricity and the higher cost to purchase electricity in the market.
Pacific Power cited global supply chain problems as one factor in reducing the supply and increasing the cost of electricity.
Megan Decker, PUC Chair, said, “We recognize that increasing rates at a time when Oregonians are already dealing with high inflation presents challenges for many customers. Unfortunately, fuel cost increases and supply chain delays caused by global events, combined with increasing volatility in regional electricity markets, drive the price for utilities to produce and purchase electricity.”