Pacific Power, PGE raise residential electricity rates again for Oregon customers

Pacific Power and Portland General Electric (PGE), Oregon's two primary privately-owned electric utilities, received approval from the state's Public Utility Commission to increase residential electricity rates beginning April 1. Pacific Power's rates will rise by 4%, costing average customers over $5 more per month, while PGE's rates will increase by 5%, adding an estimated $8 per month. This marks the sixth consecutive year of rate hikes, resulting in rates more than 50% higher than five years ago. The utilities justified the increases by citing higher fuel costs, necessary investments in grid infrastructure, wildfire mitigation efforts, and clean energy programs. However, a significant underlying factor, highlighted by a Sightline Institute analysis using U.S. Energy Information Administration data, is the "explosive demand for energy from a massive new industrial customer: data centers." Over the last decade, while residential demand on PGE's system grew approximately 10%, the demand from the industrial power customer class that includes data centers surged by nearly 70%. The timing of these rate adjustments is influenced by the new FAIR Energy Act, which restricts private utilities from raising rates between November 1 and March 31. The Citizens' Utility Board, an Oregon watchdog group, expressed frustration over the condensed review period for these combined increases, noting it limits time for public scrutiny and potential petitions. Additionally, the Public Utility Commission is scheduled to make a decision by the end of April regarding PGE's proposal to comply with another new law that mandates charging tech companies for any new infrastructure required to power their data centers, a measure the citizens' board alleges PGE is trying to circumvent.