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Understanding Energy Pricing
Understanding Energy Pricing
How PGE determines its pricing, plus descriptions of common pricing schedules.
Understanding Energy Pricing

How does PGE set electricity prices?
Like all investor-owned utilities in Oregon, PGE undergoes a rate case process with the Oregon Public Utility Commission when it wants to set or change rates. PGE bases those rates on complex forecasts of what it believes its future costs to provide electricity will be, plus a reasonable rate of return.

Included in those forecasts are the cost for PGE to generate its own energy — which is affected by prices for raw fuel like coal and natural gas — and how weather will impact the output of hydroelectric and wind generators. Rate cases also include the predicted cost to buy supplemental energy on the open wholesale market.

Your role
PGE customers have a voice in this process. With support from PGE, OPUC holds open houses for the community on every rate case considered. Citizens are encouraged to attend these open houses and provide their feedback.

How you fit in to common pricing schedules
The following pricing schedules are the most typical for residential and business customers. Your monthly statement shows your schedule(s) (some businesses may have more than one) and lists the other charges that make up your total bill.

Our Understanding Your Bill page for business or residential customers breaks out all of the information on your monthly statement and explains each charge. You can also see current prices (“tariff”) for residential and business customers by schedule, including Schedule 15, which includes outdoor-area lighting.

Residential customers
Schedule 7, Basic Service
This is the plan most residential customers are on. Pricing is based directly on the costs PGE incurs in providing electric service. You will continue on Basic Service automatically unless you select another option. Your electricity price equals your actual usage billed at the Basic Service rate. Your total bill includes other charges such as the basic charge, distribution and supplemental adjustments.

Business customers
Schedule 32, small non-residential standard service
This schedule applies to non-residential (business) customers who have not exceeded 30kW more than once in the previous 13 months (or once with seven months or less of service). The price you pay for electricity is determined by the amount you use.

Schedule 83, commercial customers
Customers in this schedule have not exceeded 200 kW more than six times in the preceding 13 months and have not exceeded 1,000 kW more than once within the prior 13 months (or once with seven months or less of service). The price you pay for electricity is determined by the amount you use and the rate at which you use it.

Schedule 85, large commercial customers
Customers in this schedule have exceeded 200 kW more than six times in the preceding 13 months but have not exceeded 1,000 kW more than once within the prior 13 months (or once with seven months or less of service). The price you pay for electricity is determined by the amount you use and the rate at which you use it.

Schedule 89, industrial customers
Customers in this schedule have a demand that exceeded 1000 kW at least twice within the prior 13 months (or once with seven months or less of service). The price you pay for electricity is determined by the amount of electricity you use and the rate at which you use it.

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