Pacific Power Submits Proposal for 16.9% Rate Increase

Salem, Oregon- Pacific Power has submitted a comprehensive rate adjustment proposal to the Oregon Public Utility Commission. The company says their proposal encompasses both a general rate case and an update to the Transition Adjustment Mechanism, aiming to address critical infrastructure needs and advance renewable energy projects across the region.

The proposed rate adjustments, totaling 16.9% or approximately $304 million, are earmarked to facilitate ongoing investments in wildfire risk management strategies, transmission infrastructure upgrades, and the expansion of renewable generation capacities. Matt McVee, Vice President of Regulatory Policy and Operations at Pacific Power, emphasized the necessity of these investments in ensuring the continued delivery of safe, reliable, and affordable energy services amidst mounting challenges.

“Through careful stewardship on behalf of our customers, we have delivered safe, reliable and affordable service at prices that are well below the national average,” stated McVee. “While our essential operating costs remain low, extreme weather events and increased wildfire risks are impacting all households and businesses, raising the costs of providing our essential services.”

The proposed adjustments are projected to translate to an average increase of approximately $29.47 per month for residential customers with typical energy usage patterns.

This incremental cost, Pacific Power asserts, is essential to fund critical initiatives aimed at enhancing the resilience of the region’s energy grid and mitigating the escalating risks.

Key drivers behind the rate adjustment proposal include investments in transmission infrastructure to accommodate the integration of new renewable resources, continued expansion of low-cost renewable energy portfolios, and adjustments in cost of capital to reflect prevailing market conditions and associated risks.

According to Pacific Power, heightened wildfire risks have necessitated substantial allocations towards wildfire risk management measures, including mitigation efforts, vegetation management, and the establishment of a catastrophic fire fund.

The proposed rate adjustments is still subject to regulatory review and public scrutiny.