According to the Oregon Public Utility Commission, Pacific Power customers will soon have to pay a little more for electricity due to the rising cost of power and other factors.
The PUC stated that the rate increase is the result of decisions made in two proceedings: a general rate increase for costs not related to energy and an annual adjustment for power costs. The PUC said clients ought to see a rate increment of a normal of 14.8%, and gave the case of a regular private family that utilized 900 kilowatt hours out of each month seeing their month to month charges expanding from $91.89 to $111.34, about a 15.1% expansion. Rates might increment by one or the other pretty much critical sums for private, business and modern clients.
“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. Although the utilities cannot avoid all of the impacts of these higher prices in the short term, there may be options available for residential customers to help reduce the bottom line impact.”
Pacific Power's rate hike, according to the PUC, is influenced in part by the rising cost of power generation. The PUC predicts that natural gas and coal, two major resources for producing electricity, will cost significantly more in 2023, and that simply purchasing power will also cost more. According to Pacific Power, issues with the global supply chain are a factor in the decreased supply and rising price of electricity.
The PUC also stated that an increase in utility costs that are not directly related to energy is partly to blame for the rate increase. According to the PUC, this increase includes increases to Pacific Power's revenue requirement, capital additions, and spending on wildfire mitigation and vegetation management.
Pacific Power claims to have a discount program in place to help customers who are having trouble making ends meet. The Oregon Energy Fund, the Oregon Energy Assistance Program, the COVID Energy Assistance Program, and the Low-Income Home Energy Assistance Program are a few of the local bill support programs, according to Pacific Power. Customers of Pacific Power are also encouraged to make use of some of the company's budgeting tools for energy costs, such as time-of-use and equal pay billing options.