Rate decision supports investments in battery storage, transmission infrastructure and maintenance to improve reliability for customers.
PORTLAND, Ore. (Dec. 20, 2024) – The Oregon Public Utility Commission (OPUC) issued its decision today in the 2025 rate review requested by Portland General Electric in February 2024. The resulting rate changes, ranging from 5.5% to 7.7% based upon customer type, will take effect January 1, 2025, and support infrastructure investments serving customers, including a local battery energy storage system designed to improve the availability of PGE’s renewable energy sources and reduce the need to purchase power from the energy market.
“PGE is working to keep prices as low as possible, knowing that customers depend on the energy we provide every day,” said John McFarland, VP Chief Commercial and Customer Officer. “To achieve this, we are making investments in a smarter and stronger energy grid to reduce outages, connect to more carbon-free energy resources and protect against damage from extreme weather and wildfires.”
The Commission authorized a residential rate increase of 5.5%, the lowest rate change among customer classes. More than half the residential rate change consists of the result of increased power costs (1.9%) and an increase to mandated funding of the Energy Trust of Oregon (1.1%). The remaining 2.5% of the residential rate increase is for capital investments for infrastructure upgrades to modernize and secure the power grid.
Estimated authorized rate increases beginning January 1, 2025
| 2025 | Base Rates | Power Costs | Other | Total |
| Averages | 3.3% | 1.9% | 1.1% | 6.2% |
| Residential | 2.5% | 1.9% | 1.1% | 5.5% |
| Commercial | 4.3% | 1.9% | 1.3% | 7.5% |
| Industrial | 2.8% | 2.5% | 0.7% | 6.0% |
Not all customer classes are represented in this chart
Calculations of 2025 rates for each customer class will be finalized in a required PGE compliance filing with the Commission next week.
The Commission’s decision approved an expected revenue requirement increase of $98 million, which is approximately 54% recovery from PGE’s final open brief filing of $182 million. The final order approved a capital structure of 50% debt and 50% equity and a return on equity (ROE) of 9.34%.
PGE is evaluating the full impact of the order, which includes decisions on certain items related to operating and maintenance costs, PGE’s fleet electrification and the Clearwater Wind Energy Center. As the Commission invited in its decision, PGE will submit a new filing to recover investments in the Seaside battery project with expedited review. PGE remains committed to customer affordability, carefully managing its cost structure and deploying resources for high-impact investments that provide maximum benefits to all stakeholders.
In its decision, the Commission noted it is not aware of significant influence from large user demand growth in the adopted rate changes for 2025. In a separate filing with the Commission today, PGE filed a proposal (UE 430) to strengthen protections for residential and small business customers and fairly allocate the cost and risk of serving large amounts of electricity to new industrial customers. The proposal includes securing up-front payments and requiring long-term contractual commitments and exit fees, among other measures. These will help pay for system investments while giving new industrial ‘large load’ customers greater clarity about the cost and timing for the energy they are seeking.
The rate review and approval process administered by the OPUC is an open, transparent public regulatory proceeding. Over the 11 months of the process, PGE provided nearly 2,000 pages of written testimony and responded to approximately 1,120 commission data requests and engaged with multiple intervenor groups.
PGE is here to help customers with their energy use and costs.
PGE is committed to helping customers access the energy they need. PGE has worked with the Commission and customer advocates to expand customer protections. PGE will suspend any disconnection for income-qualified bill discount (IQBD) customers and customers with medical certificates through March 31, 2025. In addition, PGE is forgiving up to $1000 past-due balances for the company’s most vulnerable, lowest-income IQBD customers, and expanding cold-weather disconnection protections for all customers.
Rising prices are a challenge for many customers and PGE is committed to helping customers access the energy they need. The company offers a variety of tools that help customers take control of their energy, such as usage dashboards, rebates, and incentives for energy efficiency. PGE continues to work to increase enrollment in its Income-Qualified Bill Discount program (IQBD) and offers a variety of assistance and resources for customers in need.
To learn more about energy assistance, cost savings programs or tools to help manage your bill, visit portlandgeneral.com/save-money or portlandgeneral.com/help/resources
For more information on rate making, visit Oregon.gov/PUC
About Portland General Electric Company
Portland General Electric (NYSE: POR) is an integrated energy company that generates, transmits, and distributes electricity to over 930,000 customers, serving an area of 1.9 million Oregonians. For more than 130 years, Portland General Electric (PGE) has powered social progress, delivering safe, affordable, reliable and increasingly clean electricity while working to transform energy systems to meet evolving customer needs. PGE has the largest voluntary renewable energy program in the country and was ranked the No. 1 utility in the 2024 Forrester U.S. Customer Experience Index. PGE is committed to reducing emissions from its retail power supply by 80% by 2030 and 100% by 2040. PGE is recognized by the Bloomberg Gender-Equality Index for the company’s commitment to creating a more equal, inclusive workplace. In 2023, PGE employees, retirees and the PGE Foundation donated nearly $4.6 million and volunteered over 23,000 volunteer hours to more than 400 nonprofit organizations. For more information: portlandgeneral.com/news
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