Expert: Electric bills depend on weather

Will Clark County residents’ electricity bills spike this summer? That depends on the weather, which drives the region’s energy demand and supply. And this summer promises to be hot.

“We are looking at very good chances of above average temperatures for this summer,” said Daniel Hartstock, a meteorologist with the National Weather Service in Portland.

Average temperatures for the Portland metro area hover around 82 degrees in the hottest summer months of July and August. This summer could be closer to the mid-80s, Hartstock said.

Clark Public Utilities gets most of its power from hydroelectric dams, whose production is driven by river levels.

“The warm winter and spring kept rivers full for months, which meant energy production has been high for the first half of the year and market prices have been low compared to other years,” said Dameon Pesanti, spokesperson for Clark Public Utilities.

When extreme weather events happen, like high heat or freezing temperatures, regional demand for power spikes and short-term market prices can climb, Pesanti said.

Electricity rates for Clark Public Utilities customers only fluctuate when the utility’s board of commissioners votes to change them. But the utility has to pay market rate prices for wholesale power if customer demand climbs above what the utility anticipated.

A January 2024 ice storm cost the utility about $26 million, as demand for power and market rates spiked across the region.

The utility will always provide power for customers, even during extreme weather events, he added.

“But because we’re an at-cost energy provider, we may ask customers to use less electricity during major weather events,” Pesanti said. Spared kilowatt hours mean the utility doesn’t have to buy as much power from the regional supplier, Bonneville Power Administration, when energy loads and prices are high.

Pesanti called reducing electricity use during these events a “key component to keeping our power costs in check.”

The utility recently transitioned to a new contract with BPA, which insulates it from exposure to price and supply volatility on the wholesale power market on peak hot and cold days.

“As an electric utility, that means we’ll enjoy much greater stability during volatile periods of high energy demand and high market prices,” Pesanti said.

In an extreme weather event, Pesanti said it’s possible BPA would still pass on extra costs to Clark Public Utilities. But they’d likely be much lower than what market purchases otherwise would cost, he added.

The contract spreads impacts of weather events across all of BPA’s utility customers. That could lead to future rate changes, but not in real time.

The utility also has emergency funds set aside specifically for extreme weather events.

Clark Public Utilities commissioners generally address electricity rates in January.

They have only raised them once in the past 15 years, although they have the authority to raise rates at any time, Pesanti said.