Orianna R. / Oregon

Amid the biggest coldsnap this winter, Portland, OR, residents are forced to shoulder the bill for their power company’s negligence. On Oct. 31, 2023, the Oregon Public Utility Commission approved a general energy rate increase for Portland General Electric (PGE) and is expected to approve a similar pending request from Pacific Power (a subsidiary of Pacificorp). 900,000 residents in Multnomah County, served by PGE, are already beginning to see price hikes of more than 18% while other areas served by Pacific Power are expected to experience increases of as much as 25%. This blatant price gouging comes after power infrastructure was unable to keep up with last summer’s record heat wave, causing blackouts during times when proper climate control is essential, especially for the most vulnerable members of society. With climate change induced record heat waves becoming a regular occurrence, we can expect the poorest of the working class to continue to take the brunt of failures and price gouging.

As if general rate hikes weren’t enough, Pacific Power has also requested approval to add charges to help cover the cost of punitive damages related to their role in the 2020 wildfires. On July 10, 2023, a Multnomah County jury ordered Pacific Power to pay $73 million in damages in a class action lawsuit; 2 days later they were ordered to pay an additional 25% of that sum in punitive damages, for a total of ~$90 million. Pacific Power hopes to transfer the burden of this lawsuit on to the consumer, and they are leaving the public in the dark as to the full extent of the new charges. Similarly, PGE has also applied for an unknown amount of new charges. The Oregon Citizens’ Utility Board criticized PGE for a “lack of transparency.” “Not telling customers the best estimate of how much their bills will increase is absurd,” said CUB Executive Director, Bob Jenks. “Families need to know what to expect to pay for heating… with a rate increase this high, people will struggle this winter.” As with the majority of these charges and price hikes, the Oregon Public Utility Commission is expected to grant approval when they rule on the proposed charges in March. It is only then that the public will know the true total of the costs placed on the essentials of life.

While increases to the cost of living always affect the poorest of the working people the most, it is doubly true in this case. The estimated 18% increase in residential rates for PGE is the highest between residential, business, and industrial rates of 18%, 14.4%, and 12.5% respectively. The state of Oregon provides a low income utility discount, however eligibility for a single person is restricted to income below ~$31,000, only two thirds of the living wage in Multnomah County, and PGE only offers discounts to households earning less than the absurdly low $10,734 per year. As long as utilities are in the hands of the bourgeoisie and regulated by the state that serves their every whim, there will be no end to the ever tightening conditions placed on the working class. The only solution is public utilities, under the control of the working people and utilized for the common good.

Categories: Economy, U.S. News