Oregon Households Could Pay $9,300 More for Energy by 2040, Steepest Increase in the Nation, Report Finds
Oregon households may be facing the steepest increase in energy costs in the nation as a result of federal policy changes made since January 2025.
Federal Policy Changes Could Increase Energy Costs Nationwide
Recent modeling by Energy Innovation, a nonpartisan energy and climate policy think tank, suggests that federal changes- including certain provisions of the One Big Beautiful Bill Act and changes to clean-energy and vehicle policies- will increase household energy spending nationwide through to 2040.
The increase modeled averages about $6,500 per household over the period.
Energy Innovation said that reduced support for renewable energy, changes to vehicle efficiency policies, and other federal decisions will increase demand for natural gas and gasoline, and this will contribute to higher prices.
Broader economic and health effects, including increased pollution-related healthcare costs, are also expected.
Note: The Energy Innovation figures are projections based on modeled policy effects and do not comprise forecasts of individual household bills.
Oregon Faces Largest Projected Household Increase
The Energy Innovation forecast was published amidst utility costs that are already increasing in Oregon households. Bob Jenks, executive director of the Oregon Citizens’ Utility Board, said steep rate increases linked to utility upgrades and growing electricity demand from data centers are adding to the affordability problem.
He said higher costs mean more customers may struggle to pay, and be disconnected.
The highest increase in energy costs is forecast in Oregon, with households spending an additional $840 annually in 2035 and $1,200 in 2040. The cumulative increase from 2026 through 2040 is estimated at an additional $9,300 per household.
The White House disputed Energy Innovation’s assessment. White House spokesperson Taylor Rogers said that lowering electricity prices remains a priority for the Administration, and argued that expanding coal and natural gas generation will improve reliability and reduce costs. She also questioned the think tank’s characterization as nonpartisan.