PGE seeks 7.4 percent rate increase

Portland General Electric Co. on Tuesday asked state regulators to approve a 7.4 percent electric rate increase for 2011 as the utility looks to invest in energy resources and infrastructure.

The new rates, if approved, would take effect in January 2011. The monthly bill of a typical customer using 900 kilowatt-hours of electricity would increase by about $6.70.

The rate increase would generate an additional $125 million in revenue for the Portland-based electric utility (NYSE: POR).

PGE said the additional revenue would be used to cover the costs of completing the third phase of PGE’s Biglow Canyon Wind Farm in Sherman County, relicensing hydropower facilities on the Clackamas River, rising employee health insurance premiums and updated information technology systems.

The request also includes the capital costs and eventual savings from completing a new network of smart meters, which are designed to increase energy efficiency.

The increased costs are offset partly by a projected 2 percent decrease in wholesale power costs.

The rate case filing sparks a roughly 10-month review process, with a final ruling from the Oregon Public Utility Commission expected to come late this year.