![]() People Over Profits: CUB made sure that Pacific Power did not receive an increase to its profits in rates. Delaying the full bill increase until after winter heating season.Thanks to CUB’s advocacy, the increase was limited to 8.6% for single-family homes and 6.7% for multifamily homes.ĬUB won some important victories in the general rate case: Pacific Power originally asked for a 14% increase for residential customers. Other drivers of the rate increase include capital investments in the transmission (moving energy to an area), distribution (moving energy to customers), and generation (creating energy for use) systems of Pacific Power.ĬUB Wins Victories, Despite Billing Rate Increases Residential customers are the largest users of the distribution and pay the bulk of distribution system costs. This includes funding additional vegetation management and hardening the system against wildfires. The largest driver of Pacific Power’s rate increase was spending more on wildfire mitigation. These expenses can include costs like building a new power plant, other infrastructure costs, and major investments in the energy system. These are cases where utilities can request to bill customers for large expenses from previous years. Utilities file a general rate case every few years, though the frequency varies. General Rate Case: More Money for System Improvements The size of the 2023 power cost change is unprecedented. From 2022 to 2023, PacifiCorp’s cost of generating power grew from $282 million to $426 million for Oregon. Globally, the cost of energy has increased due to global supply interruptions from recent geopolitical conflicts. Under Oregon rules, Pacific Power is allowed to update the cost of fuel for electricity generation each year. The cost of electricity, natural gas and coal has increased power costs for Pacific Power’s customers in Oregon. Power Cost Updates: Fuel is More Expensive The second request comes from a 2022 general rate case. This happens every year based on changing fuel and production costs from the previous year. The first request deals with the costs of generating power. Household electricity bills increased due to two rate requests from Pacific Power. Although this is a large increase, CUB’s advocacy helped lower the impact on Oregon households. The impact of the bill increase varies depending on actual energy usage for residential and housing types. The average residential customer will receive a rate increase of $19.45 (21%). Pacific Power residential customers received a large rate increase increased on January 1st, 2023. However, there was an error in reporting the correct price increase. Editor’s Note: Some of the press has indicated a smaller percentage increase for residential Pacific Power customers in 2023.
0 Comments
Leave a Reply. |