Your guide to Salem utility rate increases in 2025
Jan 06, 2025
Salem residents will pay more for water, garbage services and in most homes electricity in 2025.
Rates are increasing for nearly every utility provider serving the Salem area.
A typical household in Salem will spend about $17.50 per month more on utilities including power, natural gas and water, and about $15 more per year on garbage.
This is what you can expect on your bills this year.
Electricity
Salem’s main electrical provider, Portland General Electric, raised its rates on Jan. 1.
Power now costs 5.6% more for households, which means a bill of about $8.50 more per month for a typical user. The typical bill for an average residential customer will increase from $155.96 to $164.46, according to PGE spokeswoman Allison Dobscha.
The recent bill jump comes after an 18% increase last year.
State regulators approved the increase in December, citing PGE’s spending on infrastructure “needed to ensure safe and reliable utility service,” and the cost of buying power, which are stabilizing after large spikes in recent years, according to a statement from the Oregon Public Utilities Commission.
The approved rate increase is lower than what PGE requested from the commission.
Dobscha said such investments will include modernizing poles and wires, as well as a more reliable storage system for battery energy that would reduce the need to buy power from the energy market.
PGE will suspend any disconnection for Oregonians who qualify for its bill discount program. Find more information about discounts by visiting the utility’s website or calling 503-228-6322.
The utility is also forgiving up to $1,000 in past-due payments for its “most vulnerable, lowest-income” customers and expanding protections for all customers whose power is disconnected due to cold weather, it said in a statement.
Salem Electric has not approved a rate increase, according to Jacob Knudsen, member services manager.
The utility serves West Salem and some central and northern areas of the city, as well as parts of Keizer.
Knudsen said Salem Electric has not determined if it will need to increase its rates, but it will likely need a “moderate” rate increase by the end of 2025.
He said any rate increase wouldn’t come until the third quarter of the year. It would be based on the utility’s wholesale power suppliers’ rates, which won’t be finalized until mid-June.
Salem Electric last raised its rates by 4.7% in October 2023. Its average bill for residential customers is about $120, according to Knudsen.
A breakdown of rates is on the utility’s website.
Pacific Power residential customers will see rates increase by 8.6%. The average residential customer’s monthly bill will increase by $12.76, from about $145 last year to $158, according to Omar Granados, spokesman for the utility.
That’s compared with an average increase last year of 12.9%, or $14.92 per month.
The utility covers much of rural Marion and Polk counties, including Stayton, Dallas and Independence, and has discounts available for low-income customers.
Water and sewer
A typical home in Salem will spend about $5 more per month on city utilities under a rate increase adopted in November by the Salem City Council. That means a monthly bill of about $128 for city water, sewer and stormwater service.
That includes a 50-cent increase in the monthly operations fee the city charges to support general operating expenses.
Dozens of community members wrote to the council opposing the utility rate increase.
During the Nov. 12 council meeting, most councilors agreed that it is necessary to raise rates to keep up with rising costs and system maintenance.
Brian Martin, the city’s public works director, said consistent annual increases are necessary to both operate and maintain the systems, provide service and complete important infrastructure projects.
The 4.5% rate increases were recommended by a task force which included city councilors, Marion County Commissioners, representatives from the cities of Keizer and Turner, representatives of the Suburban East Salem Water District, the Salem Chamber of Commerce and the Strategic Economic Development Corporation, and two community members.
See the city’s full rate schedule here.
The city has utility bill assistance available, including monthly discounts based on income, as well as emergency assistance for past-due balances up to $500 per calendar year. Learn more about the programs and how to apply here.
Councilors at the same meeting approved $400,000 for the city’s Emergency Utility Assistance Program for 2025.
Natural gas
NW Natural, the natural gas provider for the Salem area, raised its rates in November by about 4.5% for the average residential customer.
That means a typical Salem home heated with natural gas is paying about $4 more per month. Residential customers using an average amount of gas, 55 therms, are now paying $82.74 monthly, up from $78.78, according to NW Natural spokesman Jason Cox.
The state Public Utility Commission approved the rate hike, which reflects a larger rate increase that’s offset by a decrease in the annual cost of purchasing gas.
But state regulators didn’t allow NW Natural to pass some costs along to consumers.
Existing customers currently pay subsidies to connect new customers to the natural gas system, but commissioners upheld their decision made last year to phase down those fees and completely eliminate them by November 2027. In a recent statement, they cited “high levels of uncertainty” about whether such subsidies would end up benefiting existing customers long-term.
Cox said that the gas utility recently expanded its income-based bill discount program, offering between 15% and 80% off monthly bills for customers with qualifying incomes.
NW Natural has raised its average monthly gas prices for residential customers by $18.24 over the last three years, up from $64.50 in 2021.
Garbage and recycling
Salem residents will spend about $15 more per year on garbage and recycling services.
The increase is based on a rate increase requested by private haulers in November 2023.
Most residential customers in Marion County would see an annual increase of around $15 this year, and $13.80 a year in Polk County, according to a report to the Salem City Council at the time.
That reflects a 3.35% increase for Salem residents in Marion County and a 3.79% increase for Salem residents in Polk County.
Outside city limits, Salem residents in unincorporated Marion County will pay about 2.5% more for garbage collection and disposal. Marion County Commissioners approved the rate increase on Dec. 18.
Urban households, like those in unincorporated east Salem, currently pay about $30 per month for a 35-gallon roll cart. With the rate increase, they’d pay about 78 cents more per month, according to county spokeswoman Erin Burt.
Contact reporter Ardeshir Tabrizian: [email protected] or 503-929-3053.
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