Portland General Electric : PGE asks OPUC to review customer prices

March 1, 2017

PORTLAND, Ore. - Portland General Electric Company (NYSE: POR) has asked the Oregon Public Utility Commission to review its costs of providing service and approve new customer prices to take effect in January 2018. The company filed a general rate case with the commission on Feb. 28, kicking off a comprehensive, 10-month process designed to allow OPUC staff, customer groups and other stakeholders to review the utility's expenses and evaluate costs and benefits to residential and business customers.

'As part of our commitment to provide safe, reliable, sustainable and affordable energy to our customers, we continue to invest in a resilient and flexible grid,' said Jim Piro, president and CEO of PGE. 'We understand the impact price increases have on our customers, and we do not make this request lightly. These are important investments that will meet our customers' expectations for safe and resilient service.'

Piro noted that the company is continuing to invest in its system to respond to potential service disruptions from storms, earthquakes and cyberattacks, and enhance power supply flexibility for efficient integration of more renewable energy.

Key investments in the company's request include:

• Strengthening the power grid with earthquake protection measures and improved cybersecurity through enhanced communications systems and equipment security upgrades.
• Replacing and upgrading transmission and distribution equipment at or near the end of its useful life.
• Building a more flexible grid to support a more sustainable, renewable and reliable energy future.
• Joining a regional energy market to make more efficient use of regional power plants to provide lowest-cost power to our customers.

PGE's prices are set by the OPUC in an open process with a variety of opportunities for public input. OPUC staff, business and residential customer groups and other interested parties participate in the process and make recommendations to the commission on PGE's proposal. An order from the commission is expected in late 2017 for prices effective Jan. 1, 2018.

The impact of any price adjustment will vary among different types of customers and depends on electricity usage. If PGE's request were approved by the OPUC without changes, the overall price increase would be 5.6 percent. The typical residential customer would see an average monthly bill increase of $7.30.