Lawmakers hear wide support and some opposition to doubling Oregon Energy Assistance Program to $40 million

Supporters told the House Committee on Commerce and Consumer Protection on March 27 that doubling the Oregon Energy Assistance Program (OEAP) to $40 million would help thousands of Oregon households avoid disconnection as electric rates have risen sharply since 2021.

"This bill is aimed at helping customers of Portland General Electric and Pacific Power pay down arrearages and avoid being disconnected," said Jeff Bissonette of the Northwest Energy Coalition. He described three main changes in the dash-3 amendment: doubling the OEAP fund to $40 million (collected via a customer charge), allowing the Public Utility Commission to reassess the figure every two years with notice to the Legislature if the charge increases by more than 2.5 percent, and giving the PUC authority to adjust a statutory cap affecting industrial customers.

Supporters from community action agencies and nonprofits said the program is already undersized. "In 2024, SEI provided $1,300,000 of energy assistance, and this number will be similar in 2025," said Sahan McKelvey of Self Enhancement Inc. "Utility bills for PGE and Pacific Power have increased by nearly 50% since 2021." Mid Willamette Valley Community Action Agency Executive Director Jimmy Jones testified that rising utility and housing costs put households "on the precipice of homelessness" and urged support for the bill.

Several individual Oregonians described the strain of fixed incomes and rising bills. "I'm 70 years old... my house and I are on a fixed income this year that will sum up to $11,520 for the year," said Kate Weber, who urged the committee to pass HB 3,792 to reduce the risk of disconnection.

Advocates said the charge would be small for most residential customers: witnesses estimated the current OEAP contribution is about $0.67 per month and passage could put the charge "somewhere in the dollar 30 to dollar 40 range." Bissonette and others said the program is funded by utility customers, not state general funds, and that increased assistance can be cost-effective when weighed against the costs of disconnection and reconnection.

Opponents included the Alliance of Western Energy Customers and Portland General Electric. JL Wilson of AWEC, representing large industrial users such as hospitals and manufacturers, said the bill as drafted removes a statutory cap that had protected large customers and could impose substantial new costs on facilities with very large bills. "This is not a dollar-and-cents thing for our members; these are bills that are hundreds of thousands, if not millions of dollars," Wilson said, urging a statutory cap per site.

Greg Alderson, testifying for Portland General Electric, said PGE had supported prior OEAP increases in 2021 but described concerns that simply increasing the assistance fund does not address root causes such as inefficient heat sources. PGE requested a legislative-directed PUC investigation and a two-year sunset to evaluate whether collected funds are being used effectively.

Committee members questioned the long-term policy trade-offs. Representative Resch expressed skepticism about raising customer charges as a route to affordability, saying the committee should pursue policies that address rising prices rather than repeatedly enlarging assistance funds. Representative (name transcribed as) Chudson and others noted the program's immediate practical effect in preventing disconnections and urged consideration of complementary measures such as weatherization and efficiency programs.

No formal committee vote was taken on HB 3,792 during the March 27 hearing. Committee staff and witnesses said the dash-3 amendment would require the PUC to reassess the collection level every two years and would leave some discretion to the PUC to allocate costs fairly across customer classes.