Pacific Power wants to increase its rates by 16.9% in 2025, which would bring in roughly $304 million annually.

The proposal, which would take effect at the start of the year, comes on the heels of another price hike implemented Jan. 10.

The two rate raises would combine for a $44.39 increase, or 32%, on monthly bills for average residential customers, according to data from the Oregon Public Utility Commission and Pacific Power.

The Jan. 10 rate jump added $14.92 to average residential customers’ monthly bills, while the 2025 increase would add $29.47.

Irrigation customers would see a 22.4% increase for 2025, said a Pacific Power spokeswoman. That comes on top of a 13.3% increase from this year, and the overall combined rate change would be nearly 39%.

Small commercial customers would see a rate increase of 22.4% in 2025, while large commercial and industrial customers would see a rate increase of 14.1%.

The Oregon Public Utility Commission will open an investigation to examine how reasonable the rate request is, said an agency spokeswoman. The commission’s decision will be issued in mid-December.

According to a Pacific Power news release, the new rate increase is necessary to support new investments for transmission, renewable projects and wildfire risk management.

Wildfire lawsuits

In recent months, PacifiCorp, the parent company of Pacific Power, has paid about $550 million in settlements for wildfire-related lawsuits from Douglas County, Ore.

It also faces a judgment of about $84 million for its role in causing other 2020 Labor Day fires. On its website, Pacific Power has indicated that it will appeal that jury verdict and the damage award in the case, including whether it can proceed as a class action.

Among the continuing litigation Pacific Power faces is a $28 million lawsuit over smoke damage to wine grapes.

Wildfire costs for the utility include rapidly growing insurance premiums, mitigation and vegetation management, and the creation of a catastrophic fire fund, which would create a mechanism to manage the risk associated with increased wildfire activity, according to the news release.

Company statement

“Through careful stewardship on behalf of our customers, we have delivered safe, reliable and affordable service at prices that are well below the national average,” said Matt McVee, vice president of regulatory policy and operations.

“While our essential operating costs remain low, extreme weather events and increased wildfire risks are impacting all households and businesses, raising the costs of providing our essential services,” he added.

Pacific Power has about 618,000 customers in Oregon, according to the Public Utility Commission.