Phase II of HES’s Council Approved Rate Adjustments Effective Oct. 1

HERMISTON — Effective Oct. 1, 2021, Hermiston Energy Services (HES) implemented Phase II of the City Council approved adjustments to electric rates for all customers.

As a consumer-owned, not-for-profit electric utility, Hermiston Energy Services (HES) adjusted rates based on an independent Cost of Service Analysis and feedback from the City Council in October 2020 to reduce the impact on customers. HES split these adjustments into two parts; a 6.98% increase effective Jan. 1, 2021 and a 6.9% increase on Oct. 1, 2021. Customer rates are based on actual usage.

The primary factor driving the need to adjust the cost-based rates was an increases in wholesale electricity prices. Over the past four years, HES's wholesale power provider, Bonneville Power Administration (BPA), has increased the cost by about 18%. HES's wholesale power costs comprise over 54% of its total operating expenses.

"Rate increases are an unavoidable part of providing utilities. HES has made significant adjustments to its budget over the past two years by deferring some maintenance and using financial reserves to delay a rate increase as long as possible," said Nate Rivera, HES General Manager. "Unfortunately, this was not a sustainable long-term solution, and required a rate adjustment to maintain a reliable and safe system for its customers."

The average residential customer will pay $124 in October. The U.S. Energy Information Administration estimates the Oregon average electric bill for residential customers is $176.

Hermiston Energy Services last approved a 1.87% rate adjustment in 2018. Hermiston Energy Services is a not-for-profit, consumer-owned electric utility that serves more than 5,300 accounts in Hermiston, Oregon.