As energy prices have continued to soar across the U.S., one California utility company has requested permission to impose a jaw-dropping 57% rate hike on its roughly 46,000 electricity customers. 

Here's what to know

In a November filing with the California Public Utilities Commission, PacifiCorp sought authorization to institute a $103.4 million rate increase beginning Jan. 1, 2027, according to 24/7 Wall St. The company operates as Pacific Power and is owned by Berkshire Hathaway through Berkshire Hathaway Energy. 

For residential Schedule D customers with average usage, the additional monthly cost would be $121.15, while customers receiving the CARE discount would see an average monthly increase of $90.24, according to testimony from a PacifiCorp pricing director, per 24/7 Wall Street.

PacifiCorp's proposed increases varied by customer class, with some customer groups facing 55.6% to 58% jumps while the hike for residential customers would amount to 56.9%, according to the utility's filing. The utility's base revenue requirement would grow by $82.8 million overall.

If you're looking to lower your electric bill and reduce your reliance on utility companies, rooftop solar can be a great option. For Southern California households, Palmetto offers a $0-down option with average electric bill savings of 40%. 

More background

PacifiCorp pointed to inflation, higher wildfire insurance premiums, and spending on wildfire prevention as the reasons for its request. The proposal brought three years of investment into one rate proceeding, the utility claimed, saying its California customers last had a general rate increase in 2023.

In 2022, PacifiCorp's requested rate increase totaled $28 million and called for a 25.7% increase — less than half the percentage it is seeking now. In late 2023, the CPUC approved a 17.5% increase, showing that the utility's proposed rate hike will not necessarily receive approval in its current form. 

According to PacifiCorp, its work since 2022 has included replacing more than 7,000 wooden poles with steel or fiberglass poles and installing over 300 miles of covered electric lines. 

What happens next? 

The commission's review could last several months, 24/7 Wall St. reported. Meanwhile, a separate decrease that is already scheduled to take effect Jan. 1, 2027, would lower rates by 14%, which would partially counteract the potential increase.

For households in Southern California, Palmetto's $0-down solar offer presents another potential route to lower power expenses, with average bill savings of 40%. Depending on a household's electricity costs and actual solar generation, those savings could amount to thousands of dollars annually.

Where can I learn more?

PacifiCorp's proposed hike came as California has been facing growing concerns about electricity costs and utility oversight. These stories examine the state's rate oversight overhaul, high power prices, wildfire costs, and other electricity-related challenges. 

• California launched its first utility rate oversight overhaul in 19 years amid concerns about bills.

• California's second-highest electricity costs nationwide have intensified scrutiny of the state's energy choices.

• Southern California Edison customers could pay hundreds of millions more in bills after wildfire legislation stalled.

• U.S. utilities have sought $31 billion in hikes while eyeing a $1.4 trillion buildout.

• In Portola, the city's streetlight bill more than doubled despite no increase in usage.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.