Heating your house, running the dishwasher and disposing of trash will become more expensive for most Salem residents Jan. 1 as a number of utility rate increases take effect.
A typical Salem household in Marion County would pay about $8 more each month for electricity, $2.75 for garbage and $5 for city water and wastewater, after also seeing an average natural gas bill increase of $7 per month in November.
A Salem household in Polk County would see the same monthly increase for city water and garbage services, though west Salem residents still pay slightly lower garbage rates. Most will be spared electricity rate increases, as Salem Electric has not announced plans to raise rates.
Companies are citing cost increases from labor, worldwide events and fuel prices for the increases. Here’s a breakdown of what’s increasing.
Electricity
Portland General Electric, the main supplier for Salem, has finalized an increase rate of around 7%, according to a Thursday press release from the company.
Starting Jan. 1, a typical residential customer — who uses 780 kilowatt hours per month — will see their monthly bill increase from $114.54 to $122.60.
The company started an income-based bill discount program offering between 15 and 25% off, and has various bill support programs.
Salem Electric, which covers much of west Salem and parts of Keizer, has not reported any increases as of Dec. 29 or notified their customers of an increase. The not-for-profit cooperative’s increases typically occur in October, according to a representative.
Pacific Power, which covers much of rural Marion and Polk counties, finalized an average rate increase of 14.8% for all customer types, according to a press release.
A typical customer using 900 kilowatt hours per month can expect a monthly bill increase from $91.89 to $111.34.
Pacific Power offers discounts between 20 to 40% per bill for low income customers.
Natural gas
Northwest Natural rates won’t rise Jan. 1, but the utility was approved for a two-step rate hike earlier this year.
On Nov. 1, NW Natural raised average residential rates by about 14%, and will raise them another 11% in March. The two-step increase was intended to defer the full cost of the hike to the warmer months, when customers typically use less gas, Oregon’s Public Utility Commission said in a news release.
A typical residential customer who uses 82 therms per month during the colder months saw their bill increase from around $100.21 to $107.24 in November, and will see bills around $52.11 during the warmer months.
The utility commission approved the increase, but reduced NW Natural’s rate request by 1.5% and ordered the company to cut its spending on communication with politicians by $356,000.
Commercial and industrial customers saw the full rate increase Nov. 1.
NW Natural has an income-based bill discount program, offering between 15 to 40% off monthly bills for qualified customers.
Garbage rates
The city of Salem, Marion County and Polk County approved rate increases for private garbage haulers who serve people in Salem and those in unincorporated areas of the counties.
In August, Salem city councilors approved an 8.5% rate increase for residents’ home garbage and recycling in Marion County, around $33 per year for households. For Salem residents in Polk County, rates will rise by 10.5%.
Under the new rates, a household with a 20-gallon garbage cart will pay $30.95 per month in Marion County, or $25.75 per month in Polk County.
The proposal also added a bi-weekly pick up option for a reduced rate of $22.10 monthly for Marion County and $17.35 monthly for Polk County residents. The discount for low-income seniors and customers with disabilities was doubled, to 20%.
In unincorporated Marion County, residents will pay up to $15 more per year. In November, the Marion County Board of Commissioners approved a 2.8% for residents within the Salem urban growth boundary but outside city limits, and 1.1% for rural residents.
In unincorporated Polk County, Valley Recycling customers will see an overall 15% rate increase for solid waste collection effective Jan. 1. The Polk County Board of Commissioners approved the increase at an October meeting.
Water and sewer
In July, Salem City Councilors approved a 5% monthly increase for homeowners starting in January.
Public testimony overwhelmingly opposed the increase, which passed unanimously. Councilors also voted to extend the city’s income-based assistance programs for utility ratepayers.
The new rates will see the average Salem home pay about $98.68 per month for water, wastewater and stormwater services, up from the current average of $94.
Rates are also increasing for multifamily, commercial and industrial customers, though the exact percentage depends on the type of account. A city report details the raises.
Rates will rise a similar amount in 2024, with the average home paying about $103.57.
Contact reporter Abbey McDonald: [email protected] or 503-704-0355.
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Abbey McDonald joined the Salem Reporter in 2022. She previously worked as the business reporter at The Astorian, where she covered labor issues, health care and social services. A University of Oregon grad, she has also reported for the Malheur Enterprise, The News-Review and Willamette Week.
