The Oregon Public Utility Commission (PUC) recently finalized rate increases for PacifiCorp (dba Pacific Power) customers effective Jan. 1.
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.
Pacific Power serves electricity to much of Hood River County in Oregon and the White Salmon area in Washington.
The decisions result in an average overall rate increase of 14.8% combined for all customer types, according to a press release from the utility. A typical residential customer using 900 kilowatt hours per month can expect monthly bills to increase from $91.89 to $111.34, which is about a 15.1% increase. 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.”
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