Pacific Power is increasing what it charges irrigation water users in Klamath County for electricity this year. Based on orders issued by the Oregon Public Utility Commission (PUC), Pacific Power will charge 11.4 percent more for power than in 2025.
“This increase hurts,” said Klamath Water Users Association president Tracey Liskey. “Farmers and ranchers don’t have the luxury of raising prices for the products we sell and our margins are small enough already.”
KWUA is an active party in the PUC rate cases to oppose power cost increases that are not justified. “I don’t like saying this, but it could have been much worse,” Liskey said. Pacific Power had originally proposed an increase of over 22 percent. “11.4 is the best we could get.”
As a private utility, Pacific Power is subject to regulation by the PUC. It can only charge rates that the PUC finds to be prudent and reasonable. A rate case starts by the utility filing a proposed rate schedule, which leads to a legal process in which interested parties can intervene and present testimony and arguments.
The most significant type of rate case, known as a general rate case (GRC), has the greatest influence on power costs. Other rate cases result in adjustments based on annual variables such as natural gas prices and wholesale power rates.
In recent cases, KWUA has been the only intervenor representing irrigation interests. In the 2024 GRC, it submitted expert testimony, rebuttal testimony, and legal and policy arguments. On December 19, the PUC issued a 119-page order resolving the issues in the case.
Pacific Power has pursued three GRCs in the last five years, which is unusually frequent.
“There are several upward pressures on electrical rates that are straining irrigators across the west,” said KWUA’s rate-setting expert Lloyd Reed, who testified in the case. We see rapidly increasing demand for power, costs for building renewables and decommissioning carbon-using facilities, inflation, and major costs impacts due to wildfire risks, liability, and mitigation.”
As an indication of the wildfire challenge, Pacific stated in testimony that it has experienced increases in wildfire insurance premiums of 1800 percent.
In addition, although the ultimate rate increase from the GRC was significantly less than originally proposed, one issue moved out of the case will likely have impacts in the future. Pacific Power is pursuing the creation of a catastrophic wildfire contingency fund, which would be based on collections over several years.
State legislatures in California and Utah have created frameworks for similar funds, and it is possible the issue will come to the attention of the Oregon legislature in the future.
KWUA will be actively involved in these issues and will continue to aggressively advocate on behalf of its members for an affordable and reliable power supply.
