Oregon Approves 8.5% Rate Increase for PacifiCorp Customers

Salem, Oregon-The Oregon Public Utility Commission (PUC) has approved another rate increase of approximately 8.5% for all PacifiCorp customers, set to take effect on January 1, 2025. This decision follows nearly a year of scrutiny and deliberation over the utility’s initial request for a 17.9% rate hike. The approved increase will affect residential, commercial, and industrial customers, with residential overall rates expected to rise by 9.8%.

The PUC’s decision addresses more than 60 contested issues in PacifiCorp’s general rate case, including capital investments in transmission and generation infrastructure, wildfire-related costs, and the removal of coal plants from operations by 2030, as required by Oregon law.

Key Decisions and Drivers

1. Wildfire Costs and Insurance

• Fifty percent of the costs associated with restoring service after the 2020 wildfires have been excluded from rates, pending PacifiCorp’s demonstration of prudence in its actions.

• Recognizing increased wildfire insurance premiums, the Commission mandated that shareholders bear 10% of these costs.

2. Coal Plant Exits

• The Commission adopted cost-saving measures, requiring realistic timelines and firm costs for decommissioning coal plants.

3. Large Customers and Transmission Projects

• New charges were introduced to prevent cost fluctuations caused by under- or over-forecasting from large customers, such as data centers.

• Earnings from the Gateway South Transmission Project were reduced, citing concerns over the analysis of economic benefits.

PUC Chair Megan Decker emphasized the importance of balancing customer affordability with the need for safe and reliable utility services. “We scrutinize the facts independently and only approve increases necessary to maintain essential services,” Decker said.

Protections for Vulnerable Customers

Acknowledging the burden of rate increases during the winter months, the PUC implemented measures to assist vulnerable customers. These include:

• Prohibiting disconnections for medical certificate holders and bill discount program participants until March 31, 2025.

• Requiring PacifiCorp to provide higher bill discounts and emergency assistance for low-income households.

Next Steps

PacifiCorp will submit a compliance filing to the PUC to finalize the rate changes, ensuring all Commission decisions are accurately reflected. These adjustments, along with additional rate changes effective later in 2025, will consider forecasted power costs and the impact of recent fuel price spikes.