Media Contact: media@utc.wa.gov or 360-664-1125
Docket numbers: UE-230172 and UE-210852 (consolidated)
Customer rates to increase over next two years
LACEY, Wash. – Today, state regulators approved rate increases for PacifiCorp’s electric customers.
The Utilities and Transportation Commission approved a settlement agreement, subject to conditions, establishing a multi-year rate plan for the company to recover costs related to power, investments to support its clean energy transition, and increases in the cost of capital, among other factors. This is the first general rate case settlement approved for PacifiCorp since the passage of RCW 80.28.425, which requires utilities to propose multi-year rate plans in rate case filings before the commission.
The approved settlement covers a two-year period. Beginning in March 2024, a typical residential electric customer using 1,200 kilowatt-hours per month will pay $4.37 more per month, or an average monthly bill of $129.66. Beginning in March 2025, customers will experience an additional increase of $6.07 more per month.
The settlement also requires PacifiCorp to work with the parties to develop a distributional equity analysis, a language access plan, and enhancements to its low-income bill assistance program.
The commission approved the settlement agreement, subject to the conditions, that the company tracks additional data on affordability and energy burdens. PacifiCorp must also investigate the costs of providing this data at the census tract level. If PacifiCorp and the other settling parties accept the commission’s conditions, PacifiCorp will submit a compliance filing to the commission to determine the effective date for the rate increase.
Revenue Requirements
Although the Commission authorized an increase in revenues of $12.68 million for rate year one and $21.1 million for rate years two, PacifiCorp must submit a compliance filing to update its power costs which will ultimately change the final impact to customers.
PacifiCorp also must return fifty percent of excess revenues associated with the sale of fly ash to Washington customers, effectively reducing rates by $3.4 million over two years.
Equity
In the settlement, PacifiCorp agreed to collaborate with UTC staff and interested parties to develop an equity framework to evaluate their next general rate case based on the tenets of equity developed by the Lawrence Berkeley National Laboratory. PacifiCorp will also develop a distributed equity analysis for capital projects. Additionally, PacifiCorp will develop costs and benefits for analysis in collaboration with its equity advisory group, integrated resource advisory group and its customers.
Low-income assistance
The settlement requires PacifiCorp to work with its low-income advisory group and equity advisory group to develop enhancements to its low-income bill assistance program and create an arrearage management plan. PacifiCorp will seek consensus regarding customers to use self-declaration to qualify for income-based assistance, and the Company will propose tariff revisions to the commission in a compliance filing by April 30, 2025. PacifiCorp will also conduct a robust equity review of its disconnection practices in consultation with the low-income advisory group and equity advisory group.
Portland, Ore.-based PacifiCorp is owned by Berkshire Hathaway Energy of Des Moines, Iowa. The company provides electric service to about 130,000 customers in six Eastern Washington counties: Kittitas, Columbia, Garfield, Benton, Walla Walla, and Yakima. Cities in the company’s service territory include College Place, Dayton, Grandview, Naches, Pomeroy, Prescott, Selah, Sunnyside, Toppenish, Union Gap, Waitsburg, Walla Walla, Wapato, Yakima, and Zillah.
The UTC is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide equitable, safe, and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
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