PGE files General Rate Case

On February 13, 2014, Portland General Electric (PGE) asked the Oregon Public Utility Commission to approve price increases in 2015 to pay for two new power plants when they go into service next year. This request for a potential overall price increase of 4.6 percent is the first step in a 10-month review process with several opportunities for public input.

The new plants are being built to meet customer demand. PGE’s existing plants don’t generate enough electricity to meet all their customer’s needs throughout the year. As a result, PGE buys power on the open market to fill that gap. Market prices fluctuate which puts their customers at a greater risk of unpredictable price increases. PGE conducts comprehensive long-range plans that look several years into the future to identify the least-cost, lowest-risk solution for customers over time.

The Tucannon River Wind Farm will generate up to 267 megawatts of renewable power – enough to serve 84,000 residential customers. Port Westward Unit 2 will provide 220 megawatts of gas-fired generation.

Until this year, they had several years of fairly flat prices, which included some decreases. They have been working hard to hold the line on costs. Using a continuous improvement process across all areas of their operations that they kicked off in 2009, they have identified $21.7 million in annual savings they expect to achieve in 2015. PGE’s operations and maintenance costs remain below average compared to similar utilities in the West.

PGE plans and prices are set by the Oregon Public Utility Commission. The OPUC sets PGE prices after a lengthy review and public involvement process. The Commission will only allow PGE to charge customers for costs it determines are necessary and prudent, with lots of stakeholder involvement.

If you have any questions now or during the General Rate Case process, please contact Annette Mattson at 503.464.2400  or by email at annette.mattson@pgn.com.

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