Portland General Electric (PGE) raised residential energy rates 18% on January 1, 2024. That’s PGE’s highest rate increase in 20 years. Rates for businesses also went up 14.4%.
This significant spike in costs has left many residents and businesses in Oregon grappling with the potential implications on their budgets and the local economy. In this article, we will explore the reasons behind this rate hike and its potential impact on consumers and the community. We will also show how solar can help you fight back against energy price inflation and save you money.
Estimate your total savings, payments, and total energy usage with our FREE solar calculator.
How Much Did PGE Raise Rates for 2024?
PGE raised residential energy rates by 18% for 2024. This increase will increase the average Oregon resident’s energy bill an estimated $24 per month. This could mean an estimated $290 more per year spent on energy.
PGE’s 18% energy rate hike is their highest rate increase in 20 years. It also follows several previous rate hikes: 2% increase in 2020, 11% increase in 2022, and 7% increase in 2023.
PGE rates are expected to rise again by 2% in April 2024 to address wildfire mitigation costs.
Read Oregon Public Utility Commission approval of PGE 2024 rate increase.
Why Did PGE Raise Energy Rates
PGE, like many utility companies, faces a myriad of challenges that impact its ability to deliver reliable and sustainable energy to its customers. Several factors contribute to the need for a rate increase, including costs associated with wildfire prevention, rising operational costs, investment in infrastructure upgrades, and compliance with evolving environmental regulations. PGE has explicitly cited the need for increased investment in renewable energy sources, grid modernization, and maintenance of existing facilities as primary reasons for the rate adjustment.
See PGE’s rate increase statement here.
Higher Fuel Costs
One factor that contributed to PGE’s 2024 rate increase is increased fuel costs. The cost of coal, natural gas, and other fuels are expected to increase in 2024, which makes producing energy more expensive for the utility. Global supply shortages were also cited as a factor for PGE’s energy rate increase.
Wildlife Prevention
In light of massive and historic wildfires in Oregon in 2020, Oregon utilities have been pressured to improve their practices, procedures, and equipment. After thousands of homes were destroyed and countless lives upturned by these wildfires, PGE has begun to invest in infrastructure resilience, monitoring and warning systems, and better landscape management.
And following a $1.6 Billion lawsuit against Pacific Power (PacifiCorp) for their potential role in the devastating wildfires, PGE’s actions to prevent future wildfires seems prudent.
Grid Modernization
To ensure a reliable and resilient energy infrastructure, PGE says it recognizes the importance of modernizing its grid systems. Aging infrastructure and the increasing frequency of extreme weather events necessitate significant investments in technology and equipment upgrades. PGE says the rate increase will help fund these improvements, enhancing the overall efficiency and responsiveness of the electrical grid, ultimately benefiting consumers with a more stable and secure energy supply.
Investing in Renewable Energy
One of the key aspects of PGE’s rate hike is its commitment to investing in renewable energy sources. The utility company aims to accelerate its transition to cleaner energy options, reduce carbon emissions, and contribute to a more sustainable future. The increased rates will fund projects such as expanding wind and solar energy capacity, enhancing energy storage capabilities, and developing innovative technologies to meet the growing demand for clean energy.
Balancing Act for Consumers
While the rate hike may pose challenges for consumers in the short term, PGE is working to implement strategies that ease the burden on households and businesses. The utility company is exploring options such as energy efficiency programs, rebates for energy-saving initiatives, and financial assistance for low-income customers. These measures aim to strike a balance between the need for increased revenue and the well-being of the community.
Learn more about PGE’s energy assistance programs.
Community Impact
The ripple effects of PGE’s rate hike extend beyond individual consumers. Businesses, particularly those in energy-intensive sectors, may experience an increase in operational costs, potentially leading to adjustments in pricing and workforce management. Additionally, the rate hike may spark conversations about energy policy and the broader transition to a sustainable energy future within the Portland community.
Reduce or Eliminate Energy Bills with Solar
While there are several steps homeowners and businesses can take to reduce their energy bills and fight utility price inflation, those steps can only go so far. That’s especially true when utilities continue to raise their prices more and more, year after year.
The best way to combat painful and constant energy prices is to find the best alternative to relying on the power company. As both fuel costs and demand for electricity rise, prices will continue to climb quickly. Being able to rely on a source of energy whose price isn’t dictated by external factors and corporate entities is your best bet.
That’s where solar energy comes in. Solar energy allows you to produce your own power on your own property. No more will you have to solely rely on the utility company to provide you with the (expensive) power you rely upon.
Even better, you can use battery backup to store your energy. This energy storage can be used to power your home in a power outage, or it can charge your electric vehicle (EV) so you can reduce your reliance on utility companies even more.
Take action today and see how you can reduce your energy bills and your reliance on constant energy price inflation. Contact Green Ridge Solar today to get your free solar analysis.
And try our Solar Calculator to see how much you could save with solar.
Estimate your total savings, payments, and total energy usage with our FREE solar calculator.
