Hermiston Energy Services Implements Phase II of Rate Adjustment Plan

Hermiston Energy Services (HES) is implementing phase II of the plan the Hermiston City Council approved in December 2024 to adjust rates for HES customers to address rising costs and ensure continued reliability and safety of the community’s electrical infrastructure.

The Council voted to phase in smaller rate adjustments over 18 months while HES taps into its financial reserves to cover the cost of immediate needs.

This decision was in response to increasing wholesale electricity prices, rising material costs, and the need to invest in HES’s Construction Work Plan. These factors, paired with the findings of an independent Cost of Service Analysis (COSA), highlighted the need for rate adjustments to better align with the costs of providing services to all rate classes.

The rate adjustments is occurring in three phases:

• A 7.84% adjustment effective March 1, 2025.
• A 6.49% adjustment effective March 1, 2026.
• A 5.19% adjustment effective October 1, 2026.

The phased approach has helped ease the impact on customers while ensuring that HES maintains the financial capacity to invest in critical infrastructure improvements. These upgrades are essential for maintaining the reliability and safety of the electrical system that serves over 5,500 accounts across the Hermiston community.

At the end of the three rate adjustments, the average HES customer rate will be $150 a month, which is in line with other local utilities and about $85 less than the average Oregon electric bill.

“Rate increases are an unfortunate but necessary part of ensuring that our community has access to safe and reliable energy,” said Nate Rivera, General Manager of Hermiston Energy Services. “We are committed to working with our customers to manage their energy costs through efficiency programs, consultations, and other resources.”

In alignment with Hermiston’s sustainability goals, HES continues to prioritize energy conservation as a key strategy for mitigating rising energy costs. Customers are encouraged to take advantage of HES’s energy efficiency programs and resources to reduce consumption while maintaining comfort.

The City of Hermiston appreciates the community’s understanding and support as it takes these proactive steps to ensure a sustainable and reliable energy future for all residents and businesses.