Oregon Pacific Power Bills Drop Slightly in January After Years of Sharp Increases

Pacific Power customers in Oregon will see a slight decrease in their electric bills starting January 1, 2026.

Pacific Power Electricity Bill Decrease In January

Oregon Public Utility Commission (PUC) officials confirmed that, after the PUC approved new rates based on PacifiCorp’s annual forecast of power costs needed to meet customer demand in 2026, Pacific Power customers can expect a small decrease in their electric bills.

House Bill 3179 requires that customer rates cannot increase during the winter heating season.

The new adjustment means that while actual impacts will vary depending on energy usage and customer type, typical residential customers using 900 kilowatt-hours per month will pay 96 cents, or 0.7% less,  bringing the average monthly bill to approximately $153.28. Single-family, multi-family, commercial, or industrial accounts will vary.

Projected fuel costs, purchased power, and wholesale sales, among other anticipated power costs for 2026, have been reviewed. Still, an additional rate adjustment is expected to take effect on April 1, 2026.

Pacific Power serves over 620,000 customers in Oregon who are looking to manage energy usage and reduce future bills. Incentives are available from Energy Trust of Oregon, including income-qualified offers, or learn low-cost and no-cost energy-saving tips.

Why a Small 2026 Rate Cut Doesn’t Offset Years of Rising Oregon Power Costs

According to the U.S. Energy Information Administration, Oregon’s electricity prices have increased by 26% over the last four years- from 9.03 cents per kilowatt hour in January 2020 to 11.40 cents/kWh in January 2024.

Here is how Oregon compares on typical residential monthly use, price, and bill.

The factors driving electricity costs often intersect with one another and include:

• Rising power costs
• Ongoing infrastructure needs, compounded by inflationary pressures: As more equipment reaches the end of its useful life, the cost of grid investments has increased and will likely continue to rise.
• Costs to mitigate the increasing prevalence and risks of wildfires and extreme weather

Many of Oregon’s consumer-owned utilities receive all or nearly all of their power pursuant to long-term contracts with the Bonneville Power Administration.

While BPA’s rates for Oregon consumer-owned utilities generally declined from 2022 to 2023, BPA has proposed higher rates in 2024 and beyond.

In 2021, the Oregon State Legislature passed House Bill 2021, requiring certain providers, including Pacificor, to, among other things, “eliminate greenhouse gas emissions associated with serving Oregon retail electricity consumers by 2040.” But HB 2021 does not apply to any consumer-owned utilities and is not a primary driver of their cost increases.