PGE Seeks 7.4% Rate Hike in 2025, Raising Concerns

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In a move that may impact the pockets of Oregonians once again, Portland General Electric (PGE) has submitted a request to the Oregon Public Utility Commission (PUC) for a 7.4% rate increase in 2025. This comes hot on the heels of a substantial 17% hike in 2024, marking the third consecutive year of rate increases if approved.

The proposed increase, aimed at funding crucial infrastructure upgrades and operational expenses, has sparked concerns among consumers and advocacy groups alike. PGE cited the necessity to install new local batteries, modernize aging infrastructure, and cover ongoing maintenance costs as key reasons behind the rate adjustment.

Larry Bekkedahl, PGE's senior vice president of strategy and advanced energy delivery, emphasized the importance of maintaining reliability while tackling future challenges. He highlighted the deployment of battery energy storage technology as a pivotal step in fortifying the grid, all while striving to keep costs manageable for consumers.

However, the prospect of higher utility bills has raised alarm bells, particularly among vulnerable communities already grappling with financial strain. St. Vincent De Paul of Portland, renowned for its utility assistance programs, anticipates an influx of calls from individuals struggling to cope with the potential burden of increased rates.

Craig Loughridge, the emergency services program manager at St. Vincent De Paul, expressed concerns about the impact on those already challenged by utility expenses. He noted the anticipated difficulty for many in meeting their obligations if the proposed hike comes into effect.

The Oregon Public Utility Commission now faces the task of scrutinizing PGE's request over the next ten months. If approved, the rate adjustments would take effect from January 1, 2025, onward. This development comes in the wake of a similar request by Pacific Power, seeking a 16.9% rate adjustment to fund wildfire risk management, infrastructure upgrades, and renewable energy projects.

As Oregonians await the Commission's decision, the prospect of higher utility bills underscores the delicate balance between ensuring energy reliability and affordability. With ongoing discussions surrounding the state's energy landscape, the outcome of these rate proposals will undoubtedly shape the future of Oregon's power infrastructure and its impact on consumers.