Pacific Power announced it is lowering its rate increase request for 2025 from 17.9% to 11.9% overall. For residential customers, that’s a drop from 21.6% to 14.9%. This is a significant reduction relative to the original rate requested in February, and an overall reduction in the company’s rate increase request from $322.3 million to $214.5 million.

The overall proposed average rate increase for residential customers of 14.9% using 950 kilowatt-hours per month would see a $21.49 increase on their monthly power bill. This is closer aligned to Portland General Electric (PGE) request for a 10.9% rate increase.

PacifiCorp states, “Like all utilities in the West, we are managing significantly higher insurance costs due to increased wildfire risk and activity in the region. We have also increased our own insurance coverage to ensure we can continue responsibly managing our energy system for our customers.”

All utilities were affected on April 24, 2023 when a jury verdict found PacifiCorp liable for damages for negligently failing to cut power to its 600,000 customers during a windstorm over Labor Day weekend, despite warnings from top fire officials, and for its power lines being responsible for multiple blazes. That fire killed nine people, burned more than 1,875 square miles and destroyed upward of 5,000 homes and other structures leaving billions of dollars in damages. The case highlights the legal and financial risks utilities take if they fail to take proper precautions in a hotter, drier climate.

After the verdicts were handed down, PacifiCorp filed a request with Oregon’s public utility commission asking to potentially defer the costs linked to the lawsuit. The jury awarded around $90 million to 17 homeowners named as plaintiffs in the case, and damages for a broader class that included about 2,500 properties, totaling nearly $180 million.

In its filing, PacifiCorp said the application would enable it “to preserve its ability to seek recovery in the future” in case potential future class-action damages “impact the financial stability of the company.” Such a move “would result in higher costs to customers.” They are building hundreds of miles of new lines to improve resiliency to mitigate wildfire risks. Wildfire mitigation includes vegetation management, removing dead trees around lines, and forecasting weather disruptions.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

The Oregon’s Citizens’ Utility Board sees the rate hikes as massive investments in infrastructure and creating a slush fund for potential wildfire payouts in the future. The board wants PUC to cap rate increases at 7% plus the rate of inflation, or 10% annually, whichever is lower.

No matter how you look at it, rate payers are assuming the cost of a well-meaning jury that forced infrastructure improvements. Government policies are also leading to economic struggles for countless Oregonians who are forced to keep up with inflation while their sources of income do not. While utilities are forced to incorporate expensive wind and solar energy, and even though Vice President Harris has declared she is for fracking, Oregon still wants to ban the cheapest energy. Natural gas has dropped to the lowest price in 20 years, which is also needed to produce electricity. And, Oregon still hasn’t addressed what Casper, Wyoming, is now facing with 870 windmill blades in their landfill that are indestructible and non-recyclable.


--Donna Bleiler

Post Date: 2024-08-11 12:33:28

Last Update: 2024-08-10 13:07:49