The Oregon Public Utilities Commission denied a request from the Oregon Citizen Utility Board to reject Portland General Electric's proposed 7.3% rate increase, citing a dangerous precedent and the need for a contested case process.
PORTLAND, Ore. (KOIN) – When Portland General Electric proposed a rate hike of more than 7% just months after an 18% increase, there was an uproar among its customers.
In response, an advocacy group called on the Oregon Public Utilities Commission (PUC) to deny the increase. But on Thursday, the commission instead denied that request saying it would set a negative precedent.
“Although the Commission understood [their] frustration with PGE’s rapid refiling, its order noted that accepting [their] argument to dismiss PGE’s filing without further process or summarily decide some issues through a rapid public meeting process would put the Commission on a legally unstable foundation,” according to the decision.
The Oregon Citizen Utility Board (CUB) had asked the commission to throw out PGE’s proposed rate increase of 7.3% – which, added to the past four years of increases, would total about 40% combined.
“The real message we’ve been getting from the customers that we represent is enough is enough. And I’m going back,” CUB Executive Director Bob Jenks said. “We felt it was time to go to the commission and really ask the commission to tell the company enough is enough.”
In January, the utility company’s 18% increase hit customers’ wallets right at the start of a week-long ice storm that downed power lines and led to outages throughout the Willamette Valley.
“There are still thousands of customers that are behind on their January bill,” Jenks told KOIN 6 News. “They haven’t paid yet because they were so high and unaffordable.”
The CUB had previously fought the 2024 increase and lost. In fact, when the rate increase got approved, it was higher than what had been proposed. Jenks told KOIN 6 News that it is common for more costs to be added to the filing during PUC’s months-long process.
The PUC sent the the following explanation of how that process works:
"Under Oregon law, a regulated utility may file with the PUC a proposal to change general rates at any time. For these general rate proceedings, the PUC conducts up to a year-long investigation to determine if rate changes are warranted. The PUC evaluates costs – such as operating and maintenance, asset depreciation, and cost of capital – and expected revenues, then determines rates that allow for prudent and reasonable costs to be recovered from customers. PUC Commissioners base their decision on the analysis and information in the evidentiary record after written testimony and, sometimes, a hearing."
However, the PUC said it supports a contested case process.
"The order notes that CUB will have ample opportunities to draw attention to weaknesses in PGE’s filing during the contested case process, and that arguments from CUB and others could lead the PUC to deny portions of PGE’s rate request,” the commission said.
A final decision will be made in December. If approved, the proposed rate increase will go into effect Jan. 1, 2025.
