2022 Pricing Request

We have begun a 10-month process to request a price change for 2022. To better serve you, we’re upgrading the grid to deliver safe, reliable, clean electricity where, when and how you want it.

Proposed price change

On July 9, 2021, we asked the Oregon Public Utility Commission (OPUC) to review our costs of providing service and approve new prices to take effect in 2022. This is part of a request for a potential overall price increase of 3.9%. While the impact of any price adjustment will vary among different types of customers and electricity usage, this translates to an approximate $7.44 monthly bill increase for the average residential customer.

Investments we’re making for customers

In the past three years, we have invested nearly $1 billion to upgrade our system to deliver safe, reliable and clean electricity to customers. The proposed price changes include:

  • Protections to keep our system wildfire-safe and resilient from weather and disaster-related crises year-round

  • Technology to upgrade the grid, including a new Integrated Operations Center, set to open by the end of the year, that will act as the smart grid’s nerve center and enable us to deliver electricity with fewer and shorter outages

  • Decarbonizing our energy sources to deliver the future Oregonians want and integrating renewable resources across an increasingly complex grid

Where we go from here

Prices aren’t increasing right now. If there is a change in the price you pay for electricity, it won’t take place until 2022, with a change taking place in January for variable power costs and again in the spring.

Before that happens, the OPUC will gather information so it can make an informed decision, and they’ll ask us for specific data to justify a price change. We’ll respond to those requests, and stakeholders and customer groups will offer their feedback.

Finally, the OPUC makes a ruling, setting prices and concluding the process.

How to get involved

This is an open, collaborative, customer-focused process that seeks input from a broad group of stakeholders to help ensure the needs of all of the communities we serve are met.

We encourage you to attend a public meeting — called an open house — where you can ask questions, get information and offer your point of view. The OPUC will schedule the public open house and will provide notice on their website and to all parties to the rate case docket. Typically, they provide notice well in advance.

The OPUC will also provide the opportunity to provide feedback via email.

For complete information, view rate case filing UE-394, testimony and exhibits in Rates & Regulatory Documents.

Learn more about the OPUC pricing process and how you can get involved. PGE

FAQS

On July 9, 2021, we asked the Oregon Public Utility Commission to review our costs of providing service and approve new customer prices for 2022. Agreements and updates filed with the OPUC – if approved by the Commission – would lead to an overall increase in customer prices of about 3.9%.

We have to continue upgrading the grid to deliver safe, reliable and clean electricity to customers where, when and how they want it. For customers, this means:

  • Fewer, shorter outages

  • A cleaner, healthier environment from lower emissions and faster decarbonization

  • Greater safety and lower impact during hazardous wildfire seasons and severe weather

  • More choices for clean, renewable energy sources

We’re intensifying protections to keep our system wildfire-safe and resilient from weather and disaster-related crises that will help year-round. Our No. 1 priority is protecting the lives and property of the customers and communities we serve. As Oregon’s weather gets hotter and drier, increasing the risk of catastrophic wildfires this work takes on increased importance and urgency.

A key priority has been to invest in our transmission and distribution (T&D) system to maintain and build its strength as equipment has aged out and as we face new challenges with extreme weather and wildfires, allowing us to deliver safe, reliable, clean electricity to customers where, when and how they want it.

Examples

An Integrated Operations Center (IOC) set to open in the fourth quarter of 2021. The IOC will be the smart grid’s nerve center – a critical part of PGE’s strategy to deliver the reliable, affordable clean energy future our customers need and expect.

An Advanced Distribution Management System that will allow us to manage increased demand while integrating existing and new renewable resources and also help advance our decarbonization efforts.

To meet these needs of our customers, a strong Transmission & Distribution system is essential. Over the past three years, we have invested heavily in needed pole and underground wire replacements that have come to the end of their useful lives, we have made numerous substation upgrades to maintain reliability and address new and growing load.

New and upgraded poles and wires to deliver electricity where it needs to go, whether a home, a business or an electric vehicle charging station. These additions and upgrades help us serve growing capacity needs and also make our system more resilient to weather-related crises such as devastating wildfires and ices storms like we’ve experienced recently. Examples of upgrades include:

  • We are installing our first 100 fire resistant, ductile iron poles in priority wildfire areas.

  • We are actively working to improve vegetation clearance around our lines.

  • We have installed more than 100 miles of new underground cables.

  • 11 new or rebuilt or expanded substations to address growing capacity needs..

  • Upgrading the Faraday Hydro Facility on the Clackamas River, including adding two higher-efficiency turbines housed in a reinforced concrete structure with new flood protection systems to increase plant reliability and efficiency.

We want to be the national model for clean energy, which includes aggressively decarbonizing our energy sources to deliver the future Oregonians want and PGE is committed to.

If approved as requested, the overall price increase will be about 3.9%.

PGE’s last rate case was three years ago, so base price increases have been relatively minimal – a little over 1% per year – when averaged over that period of time.

If approved:

  • Sch. 7 (Residential): ~6.4 % increase

  • Sch. 32 (Small commercial): ~7.8 % increase

  • Sch. 83 (Large commercial): ~4.4 % increase

  • Sch. 85 (Small industrial): ~0.0 % change

  • Sch. 89 (Large industrial): ~0.0 % change

  • Sch. 90 (XL industrial): ~3.2 % decrease

Note: Regulatory review of the 2021 General Rate Case will continue until the final order is issued, which is expected in April 2022. All formal agreements (i.e., stipulations) among parties to the case remain subject to OPUC approval.

If approved by the OPUC, prices would become effective in two stages. Prices would change in January to reflect an update in annual variable power expenses and some supplemental schedules, and again in the spring when bills tend to be the lowest. Ordinarily the total price change occurs in January.

We work with the OPUC to determine all of our pricing, and that includes distributing costs so they are fairly allocated across all customer types. We end up with different prices for different types of customers because they use different amounts of energy, and the costs to serve them vary. As power costs increased, those same customers received a lower than average increase the last two years.

As they have been for the past eight years, our prices continue to be lower than or near the national average across all customer groups. The regional and national averages for 2020 were:

Rate schedule (prices shown in cents)

Sch. 7: Residential

PGE price per kWh

13.5

Regional average price per kWh*

17.3

National average price per kWh

13.8

Rate schedule (prices shown in cents)

Sch. 32: Small business

PGE price per kWh

12.9

Regional average price per kWh*

15.1

National average price per kWh

13.4

Rate schedule (prices shown in cents)

Sch. 83: Commercial

PGE price per kWh

10.7

Regional average price per kWh*

13.2

National average price per kWh

11.5

Rate schedule (prices shown in cents)

Sch. 89: Industrial

PGE price per kWh

8.4

Regional average price per kWh*

8.5

National average price per kWh

7.9

*Consists of Oregon, Washington and California investor-owned utilities

Prices are set for Oregon’s investor-owned utilities in an open, public process that’s conducted by the OPUC and includes input from the Commission Staff, customer advocates and other stakeholders. There will be several opportunities for public comment, including open house meetings, plus the opportunity to submit written comments. From start to finish, the process is expected to take about 10 months. The OPUC weighs all of the input that it receives to make sure our prices are fair and reasonable.

We operate our business to deliver the best possible value to our customers, which is why we’re careful about raising prices only when necessary. Across our business, we’ve been working hard to hold the line on costs and put downward pressure on prices. We have found millions of efficiency savings during the last three years, which have served to offset our growing, needed costs to support wildfire mitigation and vegetation management.

Our 2022 request for a price review focuses on investments we’re making to create a smarter, more resilient and integrated grid. We’re in the midst of a multi-year project that’s required to meet our customers’ needs. Last year’s price review included projects such as:

  • Replacement of 50- and 60 year-old-transmission cables that run under the Willamette River with a new transmission line built into the Tilikum Crossing Bridge, which was designed to withstand a Cascadia Subduction quake.

  • Rebuilding substations like Elma to replace antiquated equipment, resulting in improved safety, reliability and better visibility into their operational status.

  • Restructuring of the buildings that house the generators at our Clackamas River hydro plants to be more earthquake resistant.

  • Reinforcing foundations at our Port Westward generation plants with a massive network of columns to eliminate liquefaction — that’s when the ground becomes fluid-like during an earthquake.

  • Retrofitted our facilities where line crew trucks and equipment are housed so the buildings better withstand shaking.

  • Anchored down substation transformers for additional stability during earthquakes.

We periodically review our costs to serve customers with the OPUC to determine all of our pricing. We are in the midst of a multi-year project to create a smarter, more resilient grid, which is required to meet our customers’ needs. We’re also working to decarbonize our energy supply and ensure we maintain reliability. To do this, it’s necessary to make investments in our system. At the same time, we are respectful of the impact price increases can have on our customers, and we are committed to protecting affordability and reliability. We will continue to work closely with the OPUC so you can be assured we’re making reasonable investments that reflect the values of our region and the energy needs of all our customers. As always, you will continue to have a voice in our process. You can attend a public “open house” where you can ask questions, get information and offer your point of view. Visit oregon.gov/puc to learn about the process.