PGE prompts customer concern with nearly 11% rate hike proposal

On the heels of one rate hike, Portland General Electric says it's asking for another.

PORTLAND, Ore. (KOIN) -- On the heels of one rate hike, Portland General Electric says it's asking for another.

After previously requesting in May that customers pay a 7.4% rate increase in 2025, the utility is instead asking for more - that total now coming to 10.9%.

With PGE already raising rates by more than 43% since 2021, utility experts say it's a slippery slope. Plus, this doesn't change the impact on bills for families and small businesses.

"It's pretty hard with really tight margins and a small business to absorb that big of a jump from one month to the next," said Kristin Ratten, co-owner of 185th Produce. "Especially then hearing that maybe there's another jump coming."

This is the latest in string of hikes made by the for-profit utility company, including an 18% jump this January ahead of ice storms that generated record high energy bills.

"It's dangerous that we're now in the double digit range," said Bob Jenks, Executive Director of the Oregon Citizens' Utility Board (CUB). "We're now more than three times the rate of inflation and customers just can't afford this after the big rate hike we had last January."

Jenks added the newest increase proposal comes as the company implemented a record number of customer disconnections this year. Back in April, PGE cut off service to more than 4,700 homes - the most recorded in a single month according to Oregon CUB - only to shut off an additional 4,300 the next month in May.

PGE says says these numbers are fluid and it's too early to say what how this proposal might impact customers. Nonetheless Oregon CUB said they are asking the Public Utilities Commission to delay or reject it.

Oregon PUC said they are working to provide additional clarification on the details of the rate hike.

"PUC staff is doing a full evaluation to better explain the difference in the 7.4% increase originally outlined in PGE’s filing, and the 10.9% number referenced in PUC staff testimony in this case in July," said PUC's Kandi Young. "We expect we can provide that explanation on Wednesday of next week. We appreciate your patience as we work to minimize confusion for the public on the complexities of the ratemaking process."

PGE said in a statement that they aren't increasing the rate case filed in May. But rather, this hike reflects an update to power costs which may continue to change:

There has not been a change to the rate case PGE filed, but an update to the power cost filings – this is reflective of what the cost has been to purchase power. Power cost filings are done routinely each year, at multiple regularly scheduled intervals and will fluctuate throughout the year.

The rate review process is a multi-step, months long proceeding that takes into account a variety of factors including customer and stakeholder input, settlement decisions and is ultimately decided by the Oregon Public Utilities Commission. At this time, no final rate case determination has been made and no number is final. PGE continues to be actively engaged in this process with all stakeholders.

We recognize that rate increases are challenging for our customers and that is why PGE has multiple programs in place to help customers manage their energy costs and offers assistance to those who may need help paying their bill. This includes the recently expanded Income Qualified Bill Discount, Equal Pay and a variety of free to low-cost tools and programs.

If approved, the rate hike would go into effect January 1.