Pacific Power Customers to See Nearly 15% Average Increase in 2023

The Oregon Public Utility Commission (PUC) recently finalized rate increases for PacifiCorp (dba Pacific Power) customers effective January 1, 2023. The increase stems from decisions in two proceedings—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 costs to mitigate wildfire risk.

The decisions result in an average overall rate increase of 14.8 percent combined for all customer types. A typical residential customer using 900 kilowatt hours per month can expect monthly bills to increase from $91.89 to $111.34. The impact varies 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 fuel (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.

“We recognize that increasing rates at a time when Oregonians are already dealing with high inflation presents challenges for many customers,” said Megan Decker, PUC Chair. “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. Although the utilities cannot avoid all of the impacts of these higher prices in the short term, there may be options available for residential customers to help reduce the bottom line impact.”