Pacific Power files for $304M rate adjustment to support wildfire management, infrastructure and renewables
In filing a general rate case and a Transition Adjustment Mechanism update last week, Pacific Power requested the Oregon Public Utility Commission approve a 16.9 percent rate adjustment – an approximately $304 million hike.
That would mean an increase of about $29.47 for the average residential customer. In return, the company stated that it would be used for investments in wildfire risk management strategies, transmission infrastructure and renewable generation projects.
“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,” Matt McVee, vice president of regulatory policy and operations, said. “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. We remain steadfast in our commitment to our customers and our communities and will continue to seek new ways to reduce impacts to customer bills while making critical investments in the West’s energy grid.”
Pacific Power also noted that it has dealt with rising costs in general, so despite the rate increase, it’s working to limit price exposure and reduce cost volatility to customers. Reducing wildfire risk is a major part of that, and those management efforts continue to include mitigation and vegetation management. Going forward, the company will also create a catastrophic fire fund to manage risks associated with increased wildfire activity.
Wildfire insurance premiums continue to grow, beyond the utility’s control.
Beyond wildfires, though, in this rate case Pacific Power will also invest in the integration of new renewable resources to meet growing demand and address the cost of capital to finance utility operations and align its costs with the current market conditions and risk.
