“We know that 2021 was a difficult, volatile year for energy prices in the West,” Matthew McVee, Pacific Power vice president of regulatory policy and operations, said in a statement. “The past year saw a record heat dome in the Northwest and unseasonable cold snaps. Our 10-state footprint and diverse sources of power generation allowed us to weather these extremes.”
McVee said the price of electricity has risen beyond projections as has the price for natural gas which it uses in some generating plants. Additionally, McVee said the long-term drought has reduced hydropower generation.
The commission will review the request. Pacific Power has asked the adjustment take effect on Jan. 1, 2023.
Pacific Power claimed it was able to keep costs down due to its involvement in the Western Energy Imbalance Market. It said it was able to cut costs to Oregon customers by a total of $30 million.
“The EIM enables access to even more low-cost, zero-carbon energy across the entire Western U.S. market while reducing emissions and increasing reliability,” the company said in a statement.
Pacific Power also said it plans to introduce a rate discount for lower income customers. It would be 25% for households with a qualified income under 60% of the the state’s median income. It will go into effect on Aug. 1, if approved.